Vertical Capital Income Fund (VCIF) is a closed end fund focused on mortgages. Its 23% NAV discount piqued our interest. Most comparable closed end funds trade at low single digit discounts, according to CEF Connect. A complex backstory, and rush of early investors seeking liquidity likely explains part of the discount. Nonetheless, VCIF could make an interesting target for an activist with a deep value strategy.
Liquidity Problems
Vertical Capital began raising capital in a continuous offering via the independent broker dealer channel starting in 2011. Prior to March 2019, VCIF had