GSV Capital Corp. Fee Structure Adjusted to Benefit Shareholders
05 Februar 2018 - 5:15PM
GSV Capital Corp. (“GSV Capital”) (Nasdaq:GSVC)
announced today that its investment adviser, GSV Asset Management,
LLC (the “Manager”), has agreed to material modifications in the
Company’s fee structure to benefit shareholders.
Consistent with management’s commentary on GSV
Capital’s third quarter 2017 earnings call (November 8, 2017), the
Manager has agreed to implement the following actions as part of
its continued focus on shareholder-centric initiatives. First, the
Manager will forfeit $5 million of its previously accrued, but
unearned incentive fee. Second, the Manager has agreed to achieve
certain high-water marks before receiving any incentive fee.
Specifically, initially, no incentive fee will be paid until both
(1) the Company’s stock price and (2) its last reported net asset
value per share is equal to or greater than $12.55. Third,
the management fee will be permanently reduced from 2.0% to 1.75%
(the Manager voluntarily waived its management fee by 25 basis
points in 2017 and announced its intention to do the same in 2018).
Lastly, the Manager has agreed to waive management fees on cash
balances until the Company’s 5.25% convertible notes are retired or
repurchased.
Comprehensive details about the fee structure
adjustment are provided in the Company’s current report on Form
8-K, which was filed in conjunction with this press release.
“We are pleased to announce these proactive
adjustments to GSV Capital’s fee structure as we continue to take
specific and meaningful steps to enhance shareholder value,” said
Michael Moe, Executive Chairman of GSV Capital. “At the same time,
we are encouraged by recent updates from the GSV Capital portfolio,
including a January announcement from Spotify – our third largest
position – that it intends to go public in early 2018. It was also
widely reported in January that Dropbox, our fifth largest
position, has filed confidentially for an IPO. These developments
reinforce my view that the GSV Capital portfolio is positioned as
well today as it ever has been.”
About GSV Capital
Corp.
GSV Capital Corp. (GSVC) is a publicly traded
investment fund that seeks to invest in high-growth, venture-backed
private companies. Led by industry veteran Michael Moe and
CEO Mark Klein, the fund seeks to create a portfolio of high-growth
emerging private companies via a repeatable and disciplined
investment approach, as well as to provide investors with access to
such companies through its publicly traded common stock. GSV
Capital is headquartered in Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
The GSV Capital Corp. logo is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=12750
Forward-Looking Statements
Statements included herein may constitute
"forward-looking statements," which relate to future events or our
future performance or financial condition. These statements are not
guarantees of our future performance, condition or results of
operations and involve a number of risks and uncertainties. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in our filings with the SEC. GSV
Capital Corp. undertakes no duty to update any forward-looking
statements made herein, unless required to do so by law.
Contact
GSV Capital Corp.(650) 235-4769IR@gsvam.com
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