MVC Capital Announces Fourth Quarter And Full Year Fiscal 2012 Results

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, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.

MVC Capital, Inc.
Consolidated Balance Sheets
	October 31,	October 31,
	2012	2011
ASSETS
Assets
Cash and cash equivalents	$ 36,160,558	$ 28,317,460
Restricted cash and cash equivalents	6,480,000	6,925,000
Investments at fair value
Non-control/Non-affiliated investments (cost $54,629,419 and $90,292,464)	34,197,990	51,182,558
Affiliate investments (cost $128,521,214 and $126,356,770)	178,396,856	187,953,099
Control investments (cost $149,281,248 and $141,569,773)	191,575,802	213,079,430
Total investments at fair value (cost $332,431,881 and $358,219,007)	404,170,648	452,215,087
Dividends and interest receivables, net of reserves	4,559,703	3,277,126
Fee and other receivables	3,314,116	4,595,741
Escrow receivables	991,563	1,146,899
Prepaid expenses	753,501	629,868
Prepaid taxes	591	--
Total assets	$ 456,430,680	$ 497,107,181
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Term loan	$ 50,000,000	$ 50,000,000
Provision for incentive compensation (Note 5)	15,655,438	23,938,058
Management fee payable	2,027,571	2,303,655
Management fee payable - Asset Management	1,054,433	297,250
Professional fees payable	767,835	703,293
Other accrued expenses and liabilities	734,501	288,111
Portfolio fees payable - Asset Management	140,293	--
Consulting fees payable	34,476	64,999
Taxes payable	--	2,099
Total liabilities	70,414,547	77,597,465
Shareholders' equity
Common stock, $0.01 par value; 150,000,000 shares authorized; 23,916,982 and 23,916,982 shares outstanding, respectively	283,044	283,044
Additional paid-in-capital	425,651,660	428,428,139
Accumulated earnings	64,524,665	40,499,006
Dividends paid to stockholders	(92,010,775)	(80,171,868)
Accumulated net realized loss	(46,401,983)	(25,755,440)
Net unrealized appreciation	71,738,767	93,996,080
Treasury stock, at cost, 4,387,466 and 4,387,466 shares held, respectively	(37,769,245)	(37,769,245)
Total shareholders' equity	386,016,133	419,509,716
Total liabilities and shareholders' equity	$ 456,430,680	$ 497,107,181
Net asset value per share	$ 16.14	$ 17.54
The accompanying notes are an integral part of these consolidated financial statements.

MVC Capital, Inc.
Consolidated Statements of Operations
	For the Year Ended	For the Year Ended	For the Year Ended
	October 31, 2012	October 31, 2011	October 31, 2010
Operating Income:
Dividend income
Non-control/Non-affiliated investments	$ 7,755	$ 246,234	$  --
Affiliate investments	2,481,234	341,043	1,893,133
Control investments	12,000,000	--	--
Total dividend income	14,488,989	587,277	1,893,133
Payment-in-kind dividend income
Affiliate investments	249,347	230,358	382,398
Total payment-in-kind dividend income	249,347	230,358	382,398
Interest income
Non-control/Non-affiliated investments	2,050,801	2,356,210	6,720,255
Affiliate investments	3,111,318	2,978,289	2,751,668
Control investments	2,423,174	2,353,376	2,388,872
Total interest income	7,585,293	7,687,875	11,860,795
Payment-in-kind interest income
Non-control/Non-affiliated investments	44,304	268,423	1,972,985
Affiliate investments	2,024,462	1,920,686	2,256,028
Control investments	812,929	755,254	949,897
Total payment-in-kind interest income	2,881,695	2,944,363	5,178,910
Fee income
Non-control/Non-affiliated investments	68,056	1,086,961	352,679
Affiliate investments	1,105,226	1,130,131	2,717,090
Control investments	766,631	566,426	626,780
Total fee income	1,939,913	2,783,518	3,696,549
Fee income - Asset Management 1
Portfolio fees	1,290,160	--	--
Management fees	1,009,577	396,333	--
Total fee income - Asset Management	2,299,737	396,333	--
Other income	442,138	1,341,241	509,712
Total operating income	29,887,112	15,970,965	23,521,497
Operating Expenses:
Management fee	8,587,992	8,844,572	9,329,809
Interest and other borrowing costs	3,366,756	3,082,125	2,824,788
Portfolio fees - Asset Management 1	967,620	--	--
Management fee - Asset Management 1	757,183	297,250	--
Audit & tax preparation fees	769,500	560,800	548,500
Legal fees	635,238	884,472	487,000
Other expenses	590,859	1,209,693	832,391
Consulting fees	384,104	550,271	366,200
Directors' fees	348,833	329,000	346,800
Insurance	333,752	348,027	353,135
Administration	261,914	268,146	273,986
Printing and postage	129,942	80,280	103,396
Public relations fees	119,700	89,800	84,000
Net Incentive compensation (Note 5)	(5,937,431)	1,947,744	2,479,167
Total operating expenses	11,315,962	18,492,180	18,029,172
Less: Voluntary Expense Waiver by Adviser 2	(150,000)	(150,000)	(150,000)
Less: Voluntary Management Fee Waiver by Adviser 3	(58,728)	(100,635)	--
Less: Voluntary Incentive Fee Waiver by Adviser 4	(2,345,189)	--	--
Total waivers	(2,553,917)	(250,635)	(150,000)
Net operating income (loss) before taxes	21,125,067	(2,270,580)	5,642,325
Tax Expenses:
Current tax expense	3,997	13,557	8,476
Total tax expense	3,997	13,557	8,476
Net operating income (loss)	21,121,070	(2,284,137)	5,633,849
Net Realized and Unrealized Gain (Loss) on Investments and foreign currency:
Net realized (loss) gain on investments and foreign currency
Non-control/Non-affiliated investments	(19,209,277)	(16,339,803)	(205,245)
Affiliate investments	--	(10,081,806)	36,111,253
Control investments	(1,309,156)	--	(3,717,209)
Foreign currency	--	--	(389)
Total net realized (loss) gain on investments and foreign currency	(20,518,433)	(26,421,609)	32,188,410
Net change in unrealized (depreciation) appreciation on investments	(22,257,313)	35,676,725	(21,689,497)
Net realized (loss) gain and net change in unrealized (depreciation) appreciation on investments and foreign currency	(42,775,746)	9,255,116	10,498,913
Net (decrease) increase in net assets resulting from operations	$ (21,654,676)	$ 6,970,979	$ 16,132,762
Net (decrease) increase in net assets per share resulting from operations	$ (0.90)	$  0.30	$ 0.66
Dividends declared per share	$ 0.495	$ 0.480	$ 0.480
The accompanying notes are an integral part of these consolidated financial statements.
1 These items are related to the management of the MVC Private Equity Fund, L.P. ("PE Fund"). Please see Note 4 "Management" for more information.
2 Reflects TTG Advisers' voluntary waiver of $150,000 of expenses for the 2012, 2011 and 2010 fiscal years that the Company would otherwise be obligated to reimburse TTG Advisers under the Advisory Agreement. Please see Note 4 "Management" for more information.
3 Reflects TTG Advisers' voluntary agreement that any assets of the Company invested in exchange-traded funds or the Octagon High Income Cayman Fund Ltd. would not be taken into the calculation of the base management fee due to TTG Advisers under the Advisory Agreement. Please see Note 4 "Management" for more information.
4 Reflects TTG Advisers' voluntary waiver of the Incentive Fee associated with pre-incentive fee net operating income for the fiscal year ended October 31, 2012. Please see Note 4 "Management" for more information.

CONTACT: Investor Relations
         Jackie Rothchild
         MVC Capital
         914-510-9400
         or
         Jeffrey Goldberger
         KCSA Strategic Communications
         212-896-1249
         
         Media Inquiries
         Nathaniel Garnick
         Sard Verbinnen & Co
         212-687-8080

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