THE investment manager of Victory Park Capital Specialty Lending Investments (VSL) has expressed frustration that the alternative finance-focused fund continues to trade at such as large discount.
VSL has been trying to reduce its discount, currently at 16.9 per cent, through share buybacks and by aiming to attract new shareholders with a redesigned website and roadshows.
“The discount remains frustrating to us as we have delivered strong performance over the past two years and believe our current investment portfolio is as strong as it has ever been,” VSL said in a third-quarter update.
“While it may take some time for the discount to narrow, the company has taken significant steps, through both capital markets and marketing efforts, to attract new long-term shareholders.”
Read more: VSL value drops below £300m
The update showed VSL’s net asset value was up 2.87 per cent in the third quarter of 2019.
The fund has been moving from marketplace lending to balance sheet-focused lenders and has a strong focus on US investments.
“Overall, credit performance has remained strong across the entire portfolio, and we are pleased with the results for the quarter,” VSL said.
“We continue to monitor for any negative changes in the US economic environment by examining the granular data we receive from each of the company’s portfolio companies.
“With unemployment at near-record lows, we believe the consumer is in a healthy position.
“The structure and tight covenant packages in our balance sheet deals provide an additional layer of protection to our investment in the event of a deteriorating credit environment.”