VICTORY Park Capital Specialty Lending Investments (VSL) reported an improvement in its share price and gross revenue return in January, after using its CapitalSource facility to invest in balance sheet loans.
The alternative finance-focused investment trust said in its latest monthly update that it “entered 2019 strong”, with a gross revenue return of 1.19 per cent, up from 1.09 per cent in December 2018.
VSL announced in December that it had secured a $75m (£56.7m) loan from CapitalSource, a division of Pacific Western Bank, to boost its returns.
It said that it had drawn down $50m of this gearing facility as of the end of January, which was “substantially fully invested in existing balance sheet investments”.
The fund’s share price rose by 1.56 per cent in January. In comparison, its share price declined by 1.54 per cent over 2018 on average and was flat in December.
At the end of January, VSL fully exited its investment in San Francisco-based fintech Fundbox, which represented 7.24 per cent of its NAV.
It said it used the proceeds to lower its CapitalSource gearing facility and reinvested some of it into existing balance sheet investments.
VSL also said that it put one of its other holdings, Oakam, into administration on 28 February, due to liquidity constraints from a delayed equity raise and unsecured liabilities.
As a secured creditor, VSL will continue to receive monthly repayments, it said, and expects that it will fully recover its principal and interest. It currently has an outstanding balance of £15.18m with Oakam, equating to 4.6 per cent of its NAV as of 31 January.