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, 2011. The highlights of the fiscal 2011 performance include: over $43 million in new and follow-on investment activity; an increase in the Company's net assets resulting from operations; significant progress with MVC Partners, LLC, including another fundraising close for the MVC Private Equity Fund L.P (“MVCPE”); and a consistent level of distributions paid to shareholders.
A core focus for the Company during fiscal 2011 continued to be its existing portfolio, as well as the prudent deployment of capital into both new and existing portfolio companies. Throughout fiscal 2011, the Company made six new investments totaling $26.1 million and seven follow-on investments aggregating $17.1 million into four existing portfolio companies. The Company’s new fiscal 2011 investments were made into: Octagon High Income Cayman Fund Ltd. (“Octagon Fund”), JSC Tekers Holdings (“JSC Tekers”), Teleguam Holdings, LLC (“Teleguam”), Pre-Paid Legal Services, Inc. (“Pre-Paid Legal”), RuMe, Inc. (“RuMe”) and Centile Holdings B.V. (“Centile”).
Under the Company's management team, net assets have grown each year, and fiscal 2011 marked another year of growth with a net increase in net assets resulting from operations of approximately $7.0 million. As of October 31, 2011, the Company's net asset value was approximately $420 million or $17.54 per share. During the year, the Company’s Valuation Committee made determinations regarding the fair values of the portfolio investments that resulted in net write-ups as of the fiscal year end in the following portfolio companies: Summit Research Labs, Inc ($14.5M), SHL Group Limited ($4.9M), Security Holdings B.V. ($17.6M), Total Safety ($74K), U.S. Gas & Electric, Inc. ($2.5M) and Velocitius B.V. ($200K). The Valuation Committee also increased the fair value of Ohio Medical Corporation’s preferred stock by approximately $1.9 million due to PIK distributions, which were treated as a return of capital. The Company’s Valuation Committee also made determinations regarding the fair values of investments that resulted in net write-downs in the following portfolio companies: MVC Automotive Group B.V. ($1.7M), SIA Tekers Invest ($2.3M), Octagon Fund ($209K), BP Clothing, LLC ($7.1), Ohio Medical Corporation ($8.5M), NPWT Corporation ($200K), HuaMei Capital Company ($1.5M), SGDA Europe B.V. ($4.3M), Vestal Manufacturing Enterprises, Inc. ($745K) and Harmony Health and Beauty, Inc. ($5.7M).
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