The Company will pursue its investment objective by effecting an orderly realisation of its assets in a manner that seeks to achieve a balance between maximising the value received from those assets and making timely returns of capital to Shareholders. This process might include sales of individual assets, mainly structured as loans, or running off the Portfolio in accordance with the existing terms of the assets, or a combination of both.
As part of the realisation process, the Company may also exchange existing debt instruments for equity securities where, in the opinion of the Board, the Company is unlikely to be able to otherwise realise such debt instruments or will only be able to realise them at a material discount to the outstanding principal balance of that debt instrument.
From 17 September 2021, the management fee is 0.55% of the Companys NAV. The Investment Manager is entitled to a performance fee. KKV will be entitled to 10% of all funds returned to Shareholders in excess of the Benchmark NAV within 12 months from 17 September 2020, reducing to 5% within 12-24 months.
As a consequence of the decision to proceed with a managed wind-down, the Board has reviewed the dividend policy going forward and has decided to cease paying monthly dividends and intends to pay quarterly dividends as well as returning excess capital as and when the Company has excess cash reserves available for distribution.