PURCHASE, N.Y., Dec. 01, 2015 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC), a publicly traded business development company that makes private debt and equity investments, today announced that The Tokarz Group Advisers (“TTGA”), the Company’s external investment adviser, has agreed to waive a portion of its advisory fees.
Under the waiver, effective November 1, 2015, MVC will pay TTGA a base management fee of 1.5% throughout fiscal 2016, a .5% reduction from the prior 2.0% fee.
In addition, TTGA will waive the first $1 million of incentive fees otherwise due under the advisory agreement on realized capital gains earned.
In addition, for fiscal 2016, MVC and TTGA have agreed to reduce the expense cap from 3.50% to 3.25% under the modified methodology adopted for fiscal 2015 (where the cap is applied to limit the Company’s ratio of expenses to total assets less cash, consistent with the asset level used to calculate the base management fee).
Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, said, “Today’s announcement demonstrates our commitment to further the alignment between the Company and Tokarz Group Advisers. While the past 12 months have been challenging for our Company, we are actively taking steps to improve performance, maintain strict cost controls, and accelerate our portfolio transition to more yielding investments. We are confident that this strategy will enhance shareholder value.”
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About MVC Capital, Inc.
MVC Capital is a Business Development Company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For MVC's investor relations, please call Jackie Rothchild at 914-510-9400 or Jeffrey Goldberger at 212-896-1249. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
Forward-Looking Statements
The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: MVC Capital's actual level of operating expenses and net expense ratio; MVC Capital’s ability to execute its yield investment strategy; the performance of MVC Capital's investments; and changes in economic or financial market conditions and other factors that are enumerated in the company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.