Daily Deal Article: MVC Capital Invests in Octagon Credit

11 May '04
May 11, 2004

Daily Deal Article: MVC Capital Invests in Octagon Credit

The Daily Deal
May 11, 2004
Vyvyan Tenorio

Purchase, N.Y.-based MVC Capital, formerly known as meVC Draper Fisher Jurvetson, is acquiring a minority stake in Octagon Credit Investors LLC, a New York-based leveraged loan and high yield security investor controlled by J.P. Morgan Partners and senior management, in a management-led buyout and recapitalization. MVC will invest $10.6 million in mezzanine and senior debt, as well as equity, from J.P. Morgan, which will retain a minority interest in Octagon. Further terms have not been disclosed. This is MVC's first investment since Michael Tokarz, a former general partner at Kohlberg Kravis & Roberts & Co., took over as chairman of MVC's board in November 2003. Octagon, founded in 1994 by leveraged loan veteran James Ferguson, manages $2.5 billion in assets.