Our three-part goal for investors:

• Build portfolio when mortgages appear to be at a deep discount
• Pay income to investors, as discount gap eventually closes and increases the potential for capital appreciation
• Allows investors to access liquidity on a limited basis.*

*Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the shares outstanding at net asset value. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

A blend of U.S. stocks and bonds, blended with international equities and cash used to be considered well-diversified. That is not the case today. Traditional approaches alone cannot seem to off-set the impact of the increasingly unpredictable changes in global market behaviors.

Vertical Capital sees that the value of whole mortgage loans, unlike Real Estate Investment Trusts (REITs), has not correlated with declining equity prices. They represent a true, non-correlative alternative that can adjust the “Efficient Frontier” of a portfolio to be more prominent in the desirable northwestern risk/return quadrant of the investment universe.

Vertical Capital believes that whole mortgage loans not only represent a deep value opportunity that may be unique to our moment in time, but also may provide a way for homeowners to stay in their homes.

• First, when it comes to more optimal positioning in The “Efficient Frontier,” a portfolio of whole mortgage loans can enable a higher degree of non-correlation than many other investments.
• Second, by participating in a Vertical Capital vehicle, investors can help families restructure their lending obligations in an attempt to keep them in their homes.

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There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.