MVC Capital: Pay Close Attention

MVC Capital (MVC), a company that I have followed for some time now since Michael Tokarz took it over, released an annual report yesterday.

They have expanded their capital base significantly in 2006, through a 100 million dollar term loan, unlike some business development companies that sell equity on a regular basis to expand their operations. Though not as appealing a value as in the past, the company performed spectacularly in 2006 (it expanded it's net asset value 47.33 million dollars).

Despite the controversy over Allied Capital Corporation (ALD), which operates in a similar space as MVC, MVC appears to be a much more transparent and well managed company. Definitely a company to pay close attention to.

Here is an article regarding the operations of MVC.

MVC vs. ALD 1-yr chart