Founded in 1999 as meVC Draper Fisher Jurveston Fund I, Inc., the Company originally sought to achieve long-term capital appreciation from venture capital investments in the information technology industry. With the downturn in the technology industry, the Board of Directors instituted a broader investment mandate to allow the Company greater flexibility to provide equity and debt financing to small and middle-market companies across multiple industries. In December 2002, the Company started doing business as MVC Capital. In fiscal 2004, Michael Tokarz and his team were recruited by the Board of Directors to implement this directional shift, make new investments and to stabilize the existing portfolio. In 2004, the Company officially changed its name to MVC Capital, Inc.
Commencing in 2006, portfolio management shifted from an internal management structure to an external management structure, with Michael Tokarz and The Tokarz Group Advisers LLC (TTGA), a registered investment adviser with the Securities and Exchange Commission, serving as the external adviser.
In October of 2014, MVC recruited a Lending Team to transition the portfolio to primarily yielding investments. With strong credit expertise and solid historical realized returns, the Lending Team began deploying capital in fiscal 2015. While MVC has the flexibility to invest across the entire capital structure, the Company seeks to build shareholder value by primarily making yielding investments in the Lower Middle Market (“LMM”). MVC is currently monetizing its equity investments and redeploying into yielding investments with the long-term goal of increasing its regular distributions to shareholders and supplementing those with capital gain distributions as equity investments are monetized. Since implementing a dividend policy in July of 2005, MVC has maintained and/or grown its quarterly distributions, never once cutting or suspending its shareholder distributions. With more yielding investments, continued growth in distributions to shareholders is anticipated. To review the yielding investment statistics, please click here.
Today, MVC Capital has cash on its balance sheet, access to credit lines, is actively monetizing its equity portfolio for deployment into yielding securities, and is poised to capitalize on increased investment activity in the LMM and middle markets.
Our core values of involvement and collaboration position us to help our portfolio companies achieve their business objectives. MVC respects and utilizes our disciplined strategy and due diligence process, while leveraging the following key attributes:
- Unique Deal Insight - Extensive insight and access to what we believe are attractive investment opportunities;
- Origination Capabilities - In-depth knowledge and an extensive network of contacts across a broad range of industries including a unique network of trusted relationship managers of Commercial Bank Partners (CBPs) providing first look non-auction opportunities for debt investments;
- Co-Investment Opportunities – Ability to access larger deals, while improving diversification and granularization across the portfolio (smaller investment sizes).
- Strong Relationships - Private equity firms, commercial banks, investment banks, business brokers and other financial institutions that can regularly expose us to investment opportunities;
- Proactive Value Creation - Active collaboration with portfolio companies to build value through financial support, operational improvements, acquisitions and consolidation;
- Flexible and Creative Structuring - Current focus on yielding investments, but retain ability to originate and structure investments across the entire capital structure;
- Diverse, Experienced Team - A multi-disciplinary team with decades of experience across business sectors.
- Differentiation - Having no call premiums allows MVC to be a financing partner of choice for both senior lenders and borrowers.