Victory Park Capital Specialty Lending (VSL) achieved returns of 15.21 per cent for the first half of 2021, thanks to new investments, risk mitigation, and the resilience of its existing investment portfolio.
According to VSL’s chairman Graeme Proudfoot, the company’s balance sheet lending investments “remained resilient to the macroeconomic stress resulting from the Covid-19 pandemic and have continued to perform in line with expectations.”
As a result, shareholders will receive a quarterly dividend of 4p per share.
“While the macro backdrop for non-traditional credit has continued to be volatile through the first half of 2021, VPC’s risk mitigation procedures, the resilience and performance of the investment portfolio and the new investments made in 2021 have driven the strong returns for the period,” said Proudfoot.
“Recent performance and returns continue to differentiate the company from many of its peers in the investment trust lending sector.”
As at 30 June 2021, the balance sheet portfolio comprised 26 portfolio companies. Seven new balance sheet investments were made by the company during the first six months of the year, and three were fully exited.
Net asset value (NAV) per share was 106.19p by the end of June 2021. This compares with a NAV per share of 95.72p in December 2020.
However, the investment trust said that some risks remain, including the potential risk of refinancing, changes in interest rates, and potential operating risks from the Covid-19 pandemic.
“We continue to look for and identify other trends that can create opportunities for investments in the future,” said Proudfoot.
“We will continue to deploy capital cautiously and we believe the portfolio is well positioned to withstand any potential challenges to come this year and next.”