9th May 2019 17:34
LONDON (Alliance News) - VPC Specialty Lending Investments PLC on Thursday said its net asset value performance improved in the first quarter of 2019.
The investment company's net asset value return for the three months to March 31 was 2.3% including income, up from a 0.9% total NAV return the year before. This lifted its trailing twelve-month NAV return to 9.9%.
Gross revenue returns were 3.3% and net revenue returns were 2.1% for the quarter. Capital returns, however, were negative 0.3% due to the cost of a hedging programme.
In February, the company agreed to amend its facilities with Elevate Credit Inc and extend the maturity date to 2024. The committed capital to Elevate across all Victory Park Capital funds is now more than USD1.0 billion.
The company said it was pleased with its results and its investment portfolio composition. These is likely to be less turnover in its top ten holdings in 2019 than in 2018, which is expected to create stability. Capital returns, however, are "more difficult to predict" and hedging is likely to to result in "a slight drag" as USD and GBP rates converge on Brexit uncertainty.
"We still feel confident that the company can continue to deliver strong risk-adjusted returns to its shareholders," said VPC Specialty Lending.
Shares in VPC Specialty Lending closed up 0.3% at 72.40 pence on Thursday.
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