Cases & Investigations
Carlyle Credit Income Fund
Type: Investigations
Defendant(s): Vertical Capital Income Fund / Carlyle Credit Income Fund
Stock Symbol: NYSE: VCIF / NYSE: CCIF
The Fund was a publicly listed close-end fund that invested in residential home loans. On January 12, 2023, the Fund announced it had entered into a transaction agreement with an affiliate of global investment firm Carlyle. Pursuant to the agreement, among other things, the Fund’s current investment manager (Oakline) would be replaced by Carlyle Global Credit Investment Management L.L.C., and the Fund’s investment mandate would change to invest in equity and debt tranches of collateralized loan obligations (CLOs). The transaction was subject to approval by a vote of the Fund’s shareholders and was conditioned on the Fund selling at least 95% of its legacy residential loan portfolio.
On July 11, 2023, during market hours, the Fund announced that it had sold a significant majority of its legacy loan portfolio for “aggregate proceeds lower than the book value of the combined assets…,” and as a result, the Fund had revised its NAV to $8.27 per share. On this news, the Fund’s share price fell $1.45 per share, from a closing price on July 10, 2023 of $9.90 per share, to a closing price on July 11, 2023 of $8.45 per share, a decline of nearly 14.7% on heavy volume.
Investors who have questions about Wolf Popper’s investigation or who held VCIF shares on July 11, 2023 and suffered damages as a result of the decline in the Fund’s share price should contact Joshua Ruthizer at (212) 451-9668 or jruthizer@wolfpopper.com.
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