VPC Specialty Lending (VSL:LSE) winding down £228M @82p ($AUD403M) value

Hi All

Some news on the Victory Park Capital front - news released on 22/12.
https://otp.investis.com/clients/uk/vpc_plc/rns/regulatory-story.aspx?cid=1083&newsid=1655214
Shareholders of VSL:LSE will vote to wind down the company's holdings over a reasonable time frame and return capital to investors.

The pressure to wind down holdings started back in September 2022, news here:
https://citywire.com/investment-trust-insider/news/vpc-specialty-lending-faces-investor-demand-for-100-exits/a2397144

According to Refinitiv, VPC owns close to 20% of VSL (received in Management and Performance Fees, with continued purchasing by VPC as the fund is undervalued). To put the value in PAC's share of 24.9% is:
VSL:LSE issued shares = 278,276,392 (from 2021 Annual Report)
Net Asset Value per share is 101p (assume Net Asset Value is after taxes)
Net Asset Value for VSL:LSE = 101p * 278,276,392 = £281,059,155.92 market capitalisation
GBP/AUD exchange rate is 1.784

This is worth $AUD501,409,534

20% of VPC's holdings is $100M give or take.
24.9% contribution to PAC is $AUD24.9M

There are a number of assumptions around this and would assume US taxes would come out from this figure - circa another 20%, therefore we are talking $AUD20M.

The other thing to consider is - this event would crystalise VPC performance fees for the VSL:LSE vehicle. Note 8 is the management and performance fees related to VPC in the VSL:LSE half yearly report https://otp.investis.com/clients/uk/vpc_plc/rns/regulatory-story.aspx?cid=1083&newsid=1629048
and note 10 in the Annual Report - https://otp.investis.com/clients/uk/vpc_plc/rns/regulatory-story.aspx?cid=1083&newsid=1629048

Other items from these announcements to consider:
1. VSL is earning on average 13.5% on debt issued to lenders
2. Victory Park has capacity to replace the lending issued as part of VSL:LSE (earning 13.5% sounds like a great investment on the recent $USD2.4B raised in latest fund)
3. This will likely lead to reduced revenue by VPC in the short term as the management fee over owned assets is reduced (including £4.45M in annual dividends). The trade off is in point 2 above, direct lending amounts will increase.

Any thoughts from others that I may have missed?

Best of Luck
Lost