Shares of MVC Capital Inc. dropped more than 4 percent after the Purchase-based investment firm announced second-quarter earnings Friday.
MVC Capital seeks to build shareholder value by making equity and other investments in middle-market companies across various industries, the company said in an announcement. Its net asset value per share for the second quarter was $16.42, down 80 cents from the end of the first quarter.
“In what proved to be a challenging quarter, MVC continued its shift to yielding investments. During the quarter, we generated a 61 percent increase in interest income over the prior year, which was the direct result of investments we made since redirecting our investment strategy,” said Michael Tokarz, chairman and portfolio manager of MVC Capital in a press release. “While historically cold weather in the United States and a tepid economic environment in Europe created temporary challenges at some of our portfolio companies, we remain confident about the long-term fundamentals and optionality of our portfolio, and recent activity.”
MVC Capital shares closed at $12.40 Friday, down 57 cents (4.39 percent) on the day.
