At a glance
- Investors are therefore getting prorated — each request trimmed to the fund's available capacity.
- Blue Vault Partners reported the oversubscription, with the report's title pointing to a declining net asset value as the backdrop.
- The combination is a double squeeze.
Priority Income Fund's latest tender offer drew repurchase requests far exceeding the shares the fund had set aside to buy back. Investors are therefore getting prorated — each request trimmed to the fund's available capacity. Blue Vault Partners reported the oversubscription, with the report's title pointing to a declining net asset value as the backdrop.
The combination is a double squeeze. An investor who wanted out of the semiliquid BDC gets fewer shares repurchased than asked, and the shares that do get bought back are priced against a falling NAV. The cash that lands in the account is smaller in both share count and per-share terms. The proration mechanism is what keeps the fund from selling assets into a weak market to meet all requests, but it also means the queue of unsatisfied repurchases carries into the next tender — at whatever price that tender brings.
Reported by the Liquidity desk from Blue Vault Partners. Published . Corrections