Vertical Capital Markets Group
The Fund is a continuously offered, diversified, closed-end “interval fund.” This type of fund makes periodic offers to repurchase shares every three months, as disclosed in the Fund’s prospectus.*
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Why A Diversified Income Strategy Is Important

Market uncertainty continues to underscore the importance of maintaining diversified strategies on both the equity and income sides of a portfolio. That is why Vertical Capital Income Fund (VCAPX) management believes today’s investors require income approaches that have less correlation with conventional market movements.

Applying a traditional value strategy to a specialized alternative asset class – first deeds of trust and whole mortgage notes – the Fund seeks to offer income-minded investors a valuable degree of non-correlation. If downward price pressure on mortgage notes continues for the foreseeable future, the next half decade may present opportunities to buy quality whole mortgage notes from financial institutions at deep discounts.
 

This is our value strategy that seeks to achieve high collateralization and non-correlation

How We Do It Graph

Take The Long View And Diversify Your Income Investment Strategy

Simple yet sophisticated, Vertical Capital Income Fund seeks to help you keep pace with your changing needs as you pursue your investment goals.

Discover how you can use VCAPX as a potential income-generating vehicle that may help improve your income outlook while tempering market volatility.

VCAPX Table

 
 


There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. The property shown is for illustration purposes only, not a guarantee of actual results. In this hypothetical, the current asset value is 10% less than the original note amount ($100,000 x 90% = $90,000). Vertical Capital seeks a purchase price in this example at a new distressed price ($100,000 x 65% = $65,000). The Vertical Capital purchase price may be under the estimated quick sale value, or foreclosure value, at the shown purchase price of $65,000. The assumed interest rate on the original note is 5.00%.
 
*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. If a redemption period is over subscribed, redemptions will be allocated on a pro-rata basis. See prospectus for full details.

For the Vertical Capital Income Fund, there is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In general, the price of a fixed-income security falls when interest rates rise. A specific security can perform differently from the market as a whole for reasons related to the issuer, such as an individual’s economic situation, and the Fund’s net asset value may be more volatile because it invests in notes of individuals. Securities may be subject to prepayment risk because issuers are typically able to prepay principal. The Fund will not invest in real estate directly, but, because the Fund will invest the majority of its assets in securities secured by real estate, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a more diversified portfolio. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s net asset value.

The Vertical Capital Income Fund is distributed by Northern Lights Distributors, LLC member FINRA (finra.org). Vertical Capital Markets Group, LLC is not affiliated with Northern Lights Distributors, LLC.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Vertical Capital Income Fund. This and other important information about the Fund is contained in the Prospectus, which can be obtained at verticalus.com/resource-center or by calling 1-866-277-VCIF (866-277-8243). The prospectus should be read carefully before investing.

2091-NLD-8/29/2013