ADDISON, Texas, Dec. 23, 2015 /PRNewswire/ -- The board of directors of Vertical Capital Income Fund (ticker VCAPX; the "Fund") announced today that it has authorized a $5.3 million, or approximately $0.39 per share dividend payable to shareholders of the Fund. The dividend consists of both a regular distribution of $0.033 per share, along with a special distribution of approximately $4.9 million (approximately $0.353 per share). The dividend is payable on December 23, 2015, to shareholders of record as of December 22, 2015.
"We are very pleased to announce this dividend, made possible due to recent transactions within the Fund," said Robert J. Chapman, Chairman of the board of directors of Vertical Capital Income Fund.
The special distribution is the result of net capital gains on asset turnover, which includes loan sales and early payoffs.
About Vertical Capital Income Fund
Vertical Capital Income Fund is a closed-end, continuously offered interval fund that primarily invests in residential whole mortgage loans and residential whole loans secured by deeds of trust. As a closed-end interval fund, it provides limited liquidity on a quarterly basis. The investment objective of the Fund is to seek income.
This release contains forward-looking statements relating to the business and financial outlook of Vertical Capital Income Fund that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. There is no assurance that the Fund will achieve its investment objective. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release.
The Fund's distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund's distribution rate at a future time. The Fund's distribution amounts may be calculated based on the ordinary income received from the underlying investments, and in certain cases, short-term capital gains realized from the disposition of investments. Long-term capital gains realized from dispositions of assets will be paid out annually. A portion of the distributions may consist of a return of capital based on the character of the distributions received from the underlying holdings.
Investment company shares involve risk including the possible loss of principal. There is a risk that issuers will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In general, the price of a fixed-income security falls when interest rates rise. A specific security can perform differently from the market as a whole for reasons related to the issuer, such as an individual's economic situation, the Fund's net asset value may be more volatile because it invests in notes of individuals. Securities may be subject to prepayment risk because issuers are typically able to prepay principal. The Fund will not invest in real estate directly, but, because the Fund will invest the majority of its assets in securities secured by real estate, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a more diversified portfolio. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's net asset value.
Investors should carefully consider the investment objectives, risks, charges and expenses of Vertical Capital Income Fund. This and other important information about the Fund is contained in the Prospectus, which can be obtained by calling 866.277.VCIF (866.277.8243). The prospectus should be read carefully before investing. Vertical Capital Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Wholesale distribution services are provided by Provasi Capital Partners LP, member FINRA/SIPC. Vertical Capital Income Fund, Behringer Advisors, LLC, and Provasi Capital Partners LP are not affiliated with Northern Lights Distributors, LLC.
SOURCE Vertical Capital Income Fund