MVC Capital, Inc. (NYSE: MVC), a publicly traded business development company that makes private debt and equity investments, today announced financial results for its fiscal year ended October 31, 2010. The highlights of the fiscal 2010 performance include: positive liquidity events; an increase in the Company’s net assets resulting from operations; further improved net operating income; a consistent level of distributions paid to shareholders; significant progress with MVC Partners, LLC, including completion of a first close for a new private equity fund; near completion of the Company’s share repurchase program; a renewed credit facility; and a strong cash balance available to take advantage of investment opportunities.
A core focus for the Company during fiscal 2010 was its existing portfolio. Throughout fiscal 2010, the Company exited seven investments receiving cash and other consideration of approximately $87.7 million. The Company’s aggregate net realized and unrealized gains for the year ended October 31, 2010 were $10.5 million. These net realized and unrealized gains were primarily related to the sales of Vitality Foodservice, Inc. and Dakota Growers Pasta Company and the increased fair values of certain portfolio companies, including, Octagon Credit Investors, LLC, Summit Research Labs, Inc., Velocitius B.V., PreVisor, Inc., U.S. Gas & Electric, Inc., Vestal Manufacturing Enterprises, Inc., and LHD Europe, whose increase in fair value was able to offset the fair value declines of other portfolio companies. For fiscal year ended October 31, 2010, the Company utilized prior year capital loss carry forwards in the amount of $30.0 million.
The Company also worked diligently to uncover additional opportunities within its portfolio and allocated capital to certain portfolio companies in addition to the one new investment made into Integrated Packaging Corporation. The follow-on investments made in fiscal 2010 aggregated $7.7 million and included: Harmony Pharmacy & Health Center, Inc., SGDA Europe B.V. and Security Holdings B.V.