This week the board of the closed-end Vertical Capital Income Fund announced that it had fired the fund’s adviser. The board reasoned that the adviser, Vertical Capital Asset Management, “lacks sufficient resources to meet its obligations to the Fund, and failed to adequately monitor the actions of its affiliate . . . in its duties as the servicing agent of the mortgage notes held by the Fund.” In the fund’s most recently filed form N-CSR, it disclosed that the fund’s independent auditor, BBD, had resigned but provided no additional detail.
The board is currently seeking both an interim and successor adviser and has already selected a new servicer for the fund’s mortgage notes. At the request of the board, the fund’s interested chair will monitor the fund’s portfolio until the board finds an interim adviser.