QuickLinks
-- Click here to rapidly navigate through this document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy
Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
|
|
|
Filed by the Registrant
ý
|
Filed by a Party other than the Registrant
o
|
Check the appropriate box:
|
o
|
|
Preliminary Proxy Statement
|
o
|
|
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
|
ý
|
|
Definitive Proxy Statement
|
o
|
|
Definitive Additional Materials
|
o
|
|
Soliciting Material Pursuant to §240.14a-12
|
|
|
|
|
|
(Name of Registrant as Specified In Its Charter)
|
MVC CAPITAL, INC.
|
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
|
Payment of Filing Fee (Check the appropriate box):
|
ý
|
|
No fee required.
|
o
|
|
Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
|
|
|
1)
|
|
Title of each class of securities to which transaction applies:
|
|
|
2)
|
|
Aggregate number of securities to which transaction applies:
|
|
|
3)
|
|
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
|
|
|
4)
|
|
Proposed maximum aggregate value of transaction:
|
|
|
5)
|
|
Total fee paid:
|
o
|
|
Fee paid previously with preliminary materials.
|
o
|
|
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
|
|
|
1)
|
|
Amount Previously Paid:
|
|
|
2)
|
|
Form, Schedule or Registration Statement No.:
|
|
|
3)
|
|
Filing Party:
|
|
|
4)
|
|
Date Filed:
|
|
|
|
SEC 1913 (04-04)
|
|
Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
|
|
|
|
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD AUGUST 30, 2016
MVC CAPITAL, INC.
NOTICE IS HEREBY GIVEN
that the annual meeting (the "Meeting") of the
stockholders of MVC Capital, Inc. (the "Fund") will be held at the offices of Kramer Levin Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, NY 10036, on August 30,
2016, 3:00 p.m. (Eastern time) for the following purposes:
-
1.
-
to
elect seven (7) nominees to serve as members of the Board of Directors of the Fund;
-
2.
-
to
consider a proposal to ratify the selection of Grant Thornton LLP as the Fund's independent registered public accounting firm for the period ending
October 31, 2016; and
-
3.
-
to
transact such other business as may properly come before the meeting or any adjournment thereof.
The
proposals are discussed in greater detail in the Proxy Statement attached to this Notice. Stockholders of record as of the close of business on July 1, 2016 are entitled to
receive notice of and to vote at the Meeting. Each stockholder is invited to attend the Meeting in person. If you cannot be present at the Meeting, we urge you to mark, sign, date and promptly return
the enclosed Proxy Card so that the Meeting can be held and a maximum number of shares may be voted. For questions regarding this proxy, including directions to the Meeting, please call
(914) 510-9400.
IT IS IMPORTANT THAT PROXY CARDS BE RETURNED PROMPTLY.
If you do not expect to attend the Meeting, you are urged to mark, sign, date and return without delay the
enclosed Proxy Card(s), which requires no postage if mailed in the United States, so that your shares may be represented at the Meeting. Instructions for the proper execution of the Proxy Card(s) are
set forth at the end of the attached Proxy Statement. Instructions for telephone and Internet voting are set forth on the enclosed Proxy Card.
A proxy may be revoked at any time before it is exercised by the subsequent execution and submission of a revised proxy, by giving written
notice of revocation to the Fund at any time before the proxy is exercised or by voting in person at the Meeting.
Important Notice Regarding the Internet Availability of Proxy Materials for the Annual Meeting to be Held on August 30, 2016
The proxy statement is available at:
http://www.proxydocs.com/mvc (if you are a record stockholder); and
If you are a beneficial owner of shares registered in the name of your broker, bank or other agent, you should have received a notice containing voting instructions from that
organization rather than from us. Simply follow the voting instructions in the notice to ensure that your vote is counted. To vote in person at the Meeting, you must obtain a valid proxy from your
broker, bank or other agent. Follow
the instructions from your broker or bank included with these proxy materials, or contact your broker or bank to request a proxy form.
|
|
|
|
|
By Order of the Board of Directors,
|
|
|
Michael Tokarz
Chairman
|
July 21,
2016
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
ANNUAL MEETING OF STOCKHOLDERS
OF
MVC CAPITAL, INC.
August 30, 2016
287 Bowman Avenue
2nd Floor
Purchase, New York 10577
(914) 510-9400
PROXY STATEMENT
This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors (the
"Board") of MVC Capital, Inc. (the "Fund") for use at the annual meeting of the stockholders of the Fund (the "Meeting"), to be held at the offices of Kramer Levin Naftalis & Frankel LLP, 1177
Avenue of the Americas, New York, NY 10036, on August 30, 2016, 3:00 p.m. (Eastern time), and at any adjournment thereof. This Proxy Statement, the accompanying Notice of Annual
Meeting of Stockholders, and the enclosed Proxy Card(s) are expected to be made
available to stockholders on or about July 21, 2016. On or about July 21, 2016, the Fund will also begin mailing a Notice of Internet Availability of Proxy Materials for the Annual
Meeting, informing stockholders that this Proxy Statement, the Fund's Annual Report on Form 10-K for the fiscal year ended October 31, 2015 (the "2015 Report") and voting instructions,
are available online. As more fully described in that Notice, all stockholders may choose to access proxy materials on the Internet or may request to receive paper copies of the proxy materials.
A
Proxy Card that is properly executed and returned to the Fund prior to the Meeting will be voted as provided therein at the Meeting and at any adjournment thereof. A proxy may be
revoked at any time before it is exercised by the subsequent execution and submission of a revised proxy, by giving written notice of revocation to the Fund at any time before the proxy is exercised
or by voting in person at the Meeting. Signing and mailing a Proxy Card will not affect your right to give a later proxy or to attend the Meeting and vote your shares in person.
The
Board intends to bring before the Meeting the proposals that are set forth in the Notice of Annual Meeting of Stockholders and that are described in this Proxy Statement. The persons
named as proxies on the enclosed Proxy Card will vote all shares represented by proxies in accordance with the instructions of stockholders as specified on the Proxy Card. Abstentions and broker
non-votes will each be counted as present for purposes of determining the presence of a quorum. A "broker non-vote" occurs when a broker submits a proxy card with respect to shares of common stock
held in a fiduciary capacity (typically referred to as being held in "street name"), but declines to vote on a particular matter because the broker has not received voting instructions from the
beneficial owner nor does it have discretionary power to vote on a particular matter. Under the rules that govern brokers who are voting with respect to shares held in street name, brokers have the
discretion to vote such shares on certain routine matters, but not on other matters. For example, brokers have the discretion to vote on the proposal to ratify the selection of Grant Thornton LLP as
the Fund's independent registered public accounting firm, but not on the election of directors.
With
respect to the proposal to ratify the selection of Grant Thornton LLP as the Fund's independent registered public accounting firm, abstentions and broker non-votes will not
have any effect on the outcome of the proposal. With respect to the election of each nominee to serve as a member of the Board, broker non-votes will have no effect on the outcome of the proposal.
1
In
addition to soliciting proxies by mail, officers of the Fund may solicit proxies by telephone or in person, without special compensation. The Fund may retain a proxy solicitor to
assist in the solicitation of proxies, for which the Fund would pay usual and customary fees.
Most
beneficial owners whose shares are held in street name will receive voting instruction forms from their banks, brokers or other agents, rather than the Fund's Proxy Card. A number
of banks and brokerage firms are participating in a program that offers a means to grant proxies to vote shares via the Internet or by telephone. If your shares are held in an account with a bank or
broker participating in this program, you may grant a proxy to vote those shares via the Internet or telephonically by using the website or telephone number shown on the instruction form provided to
you by your broker or bank.
Only
stockholders of record as of the close of business on July 1, 2016 (the "Record Date") are entitled to notice of, and to vote at, the Meeting. On the Record Date, 22,702,821
shares of the Fund were outstanding.
Each
stockholder of record on the Record Date is entitled to one vote for each share held.
The
stockholders of the Fund have no dissenter's or appraisal rights in connection with any of the proposals described herein.
In
the event that a quorum is not present at the Meeting or at any adjournment thereof, or in the event that a quorum is present at the Meeting but sufficient votes to approve a proposal
are not received, one or more adjournments of the Meeting may be proposed to permit further solicitation of proxies. A stockholder vote may be taken with respect to the Fund on some or all matters
before any such adjournment if a quorum is present and sufficient votes have been received for approval. Any adjournment will require the affirmative vote of a majority of the shares represented at
the Meeting in person or by proxy.
This Proxy Statement and the 2015 Report are available on the Fund's website at www.mvccapital.com. The 2015 Report is not to be regarded as proxy-soliciting
material. The 2015 Report may be obtained without charge, by writing to the Fund at 287 Bowman Avenue, 2nd Floor, Purchase, New York 10577, or by calling toll-free 1-800-426-5523. The Fund's
Report on Form 10-K for the fiscal year ended October 31, 2014 is available on our website at the address above. The Fund's quarterly report on Form 10-Q for the period ended
April 30, 2016 is scheduled to be filed with the SEC as soon as practicable.
2
PROPOSAL 1
ELECTION OF DIRECTORS
At the Meeting, stockholders will vote on a proposal to elect seven (7) nominees to serve as directors of the Fund ("Directors")
("Proposal 1"). The nominees include Emilio Dominianni, Phillip Goldstein, Gerald Hellerman, Warren Holtsberg, Robert Knapp, William Taylor and Michael Tokarz. Each nominee is currently a member of
the Board.
The
persons named as proxies on the enclosed Proxy Card intend, in the absence of contrary instructions, to vote all proxies they are entitled to vote in favor of the election of the
seven (7) nominees named above to serve as the Directors. Each of the nominees has consented to stand for election and to serve if elected. If elected, a nominee will serve for a term of one
year until the next annual meeting of stockholders after his election. If any nominee should be unable to serve, an event that is not now anticipated, the persons named as proxies will vote for such
replacement nominee as may be recommended by the presently serving Directors.
Information
regarding the nominees and the officers of the Fund, including brief biographical information, is set forth below as of June 1, 2016.
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
Nominees for Independent Directors
|
|
|
|
|
|
|
|
|
|
|
Emilio Dominianni
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 84
|
|
Director
|
|
1 year/13 years, 3 months
|
|
Mr. Dominianni is a retired Partner of, and was Special Counsel to, Coudert Brothers LLP, a law firm. He is currently a director of Stamm International Corporation, Powrmatic Inc., and Powrmatic of Canada Ltd.,
manufacturers and distributors of heating, ventilating, and air conditioning equipment.
|
|
None(1)
|
|
See column 4
|
Phillip Goldstein
287 Bowman Avenue
2
nd
Floor
Purchase, NY 10577
Age: 71
|
|
Director
|
|
1 year/3 years, 9 months
|
|
Mr. Goldstein is a principal of Bulldog Holdings, LLC, the owner of several entities serving as the general partner of several investment partnerships in the Bulldog Investors group of private funds, and the
owner of Kimball & Winthrop, LLC, the managing general partner of Bulldog Investors General Partnership, since 2012; he was also a principal of the general partner of several investment partnerships in the Bulldog Investors group of private
funds from 1992-2012; additionally, Mr. Goldstein is a principal of Bulldog Investors, LLC (formerly
|
|
None(1)
|
|
See column 4
|
3
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
|
|
|
|
|
|
known as Brooklyn Capital Management, LLC), the investment adviser for Special Opportunities Fund and several private investment funds, since 2009. Mr. Goldstein is (or was previously) a Director of the following
closed-end funds: Mexico Equity and Income Fund since 2000; Special Opportunities Fund since 2009; ASA Gold and Precious Metals Ltd. from 2008 to 2013; Korea Equity Fund from 2010-2012; Brantley Capital Corporation from 2001 to 2013; Chairman and
Director of Emergent Capital, Inc. (formerly known as Imperial Holdings, Inc.), a specialty finance company, since 2012; and Director of Crossroads Capital, Inc., a business development company, since 2016.
|
|
|
|
|
Gerald Hellerman
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 78
|
|
Director
|
|
1 year/13 years, 3 months
|
|
Mr. Hellerman owned and served as Managing Director of Hellerman Associates, a financial and corporate consulting firm, from the firm's inception in 1993 until it ceased operations in 2013. Mr. Hellerman
currently serves as a director and chief compliance officer for The Mexico Equity and Income Fund, Inc. and for Special Opportunities Fund, Inc. Mr. Hellerman currently serves as director and chairman of the audit committee of Emergent Capital,
Inc. (formerly known as Imperial Holdings Inc.) and Crossroads Capital, Inc. (formerly BDCA Venture, Inc.), as well as a director of Ironsides Partners Opportunity Offshore Fund Ltd. Mr. Hellerman was previously a director of Brantley Capital
Corporation, a director of the Old Mutual registered hedge fund complex, and a director of TM Entertainment and Media, Inc.
|
|
None(1)
|
|
See column 4
|
4
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
Robert Knapp
Ironsides Partners LLC
100 Summer Street
27th Floor
Boston, MA 02108
Age: 49
|
|
Director
|
|
1 year/13 years, 3 months
|
|
Mr. Knapp is the Founder and Managing Director of Ironsides Partners LLC, a Boston based investment manager specializing in closed-end funds, holding companies, and asset value investing generally. Ironsides and
related entities serve as the manager and general partner to the Ironsides Partners Opportunity Fund, Ironsides Partners Special Situations Fund, Ironsides Partners Special Situations Fund II, Ironsides Partners P Fund and certain managed accounts
for institutional clients. He serves as a director of the Africa Opportunity Partners Ltd. and its related fund vehicles, including the Africa Opportunity Fund Ltd. (LSE: AOF). Mr. Knapp is an independent, non-executive director of Castle
Private Equity AG (SWX: CPEN), as well as the Pacific Alliance Asia Opportunity Fund and its related entities and Pacific Alliance Group Asset Management Ltd., based in Hong Kong. Mr. Knapp also serves as a member of the Board of Managers of
Veracity Worldwide LLC. In addition to his directorships named above, Mr. Knapp is a Trustee of the Regional Plan Association and the Sea Education Association. He also serves as a director of the Massachusetts Eye and Ear Infirmary.
Mr. Knapp was previously a director of Pacific Alliance Investment Management Ltd. and the Vietnam Opportunity Fund. He previously served as a member of the Board of Managers of Waterloo Oil & Gas LLC. Prior to founding Ironsides,
Mr. Knapp was a managing director for over ten years with Millennium Partners, based in New York.
|
|
None(1)
|
|
See column 4
|
5
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
William Taylor
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 73
|
|
Director
|
|
1 year/10 years, 3 months
|
|
Mr. Taylor is a Certified Public Accountant and retired Partner of Deloitte & Touche. Mr. Taylor is currently a director of Northern Illinois University Foundation (where he was Treasurer from 2007 to
2011) and President and a director of The William & Dian Taylor Foundation. Mr. Taylor was previously a trustee of Writers Theatre. From 1976 through May 2005, Mr. Taylor was a Partner at Deloitte & Touche. From 1997 to
2001, Mr. Taylor was a director of Deloitte & Touche USA and from 1999 to 2003 Mr. Taylor was a director of Deloitte Touche Tohmatsu.
|
|
None(1)
|
|
See column 4
|
Officer and Nominees for Interested Directors
|
|
|
|
|
|
|
|
|
|
|
Warren Holtsberg(2)
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 65
|
|
Director
|
|
1 year/9 years, 2 months
|
|
Mr. Holtsberg currently serves as Co-Head of Portfolio Management of The Tokarz Group Advisers LLC (the "Adviser"), the investment adviser to the Fund. Mr. Holtsberg founded Motorola Ventures, the venture
capital and private equity investment arm for Motorola, Inc. where he led the worldwide fund for eight years. He was also Corporate Vice President and Director of Equity Investments at Motorola. Mr. Holtsberg served as a member of the Board of
Directors of the Illinois Venture Capital Association until 2014, and currently serves as a member of the Board of Sportvision, the Big Shoulders Fund, and Advanced Oilfield Services, a portfolio company of the MVC Private Equity Fund, L.P.
Mr. Holtsberg serves as an Emeritus Board Member of the Chicagoland Entrepreneurship Center, the Illinois Emerging Technology Funds and as Chairman of the Board of UI Labs. Previously, Mr. Holtsberg
|
|
None(1)
|
|
See column 4
|
6
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
|
|
|
|
|
|
served as a board member of Illinois Ventures, the venture investment arm for the University of Illinois through 2015. Mr. Holtsberg also serves as a director for U.S. Gas & Electric, Inc. and MVC Partners
LLC, portfolio companies of the Fund.
|
|
|
|
|
Michael Tokarz(3)
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 66
|
|
Director/Principal Executive Officer
|
|
1 year/12 years, 7 months
|
|
Mr. Tokarz currently serves as Chairman and Portfolio Manager of the Fund and as Manager of the Adviser. Mr. Tokarz is also the Managing Member of The Tokarz Group, a private merchant bank, since 2002. In
addition, Mr. Tokarz is a principal and investment team member of PPC Enterprises LLC, a registered investment adviser. Prior to this, Mr. Tokarz was a senior General Partner and Administrative Partner at Kohlberg Kravis
Roberts & Co., a private equity firm specializing in management buyouts. He also currently serves on the corporate boards of CNO Financial Group, Inc., Walter Investment Management Corp., and Mueller Water Products, Inc. He is Chairman
Emeritus and is a member of the Board of the University of Illinois Foundation, and serves on its executive committee, investment policy committee and finance committee. He is also a member of the Board of Managers for Illinois Ventures, LLC and
Illinois Emerging Technology Fund LLC. Mr. Tokarz serves as a director for the following portfolio companies of the Fund: Custom Alloy Corporation, MVC Automotive Group B.V., MVC Partners LLC, and Turf Products, LLC. He also serves as a
director of Focus Pointe Global, Gibdock Limited, and Plymouth Rock Energy, LLC, all portfolio companies of MVC Private Equity Fund, L.P. He was
|
|
None(1)
|
|
See column 4
|
7
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
|
|
|
|
|
|
previously on the board of Lomonosov, Althleta, Inc., and Apertio Ltd. Additionally, he was on the boards of Timberland Machines & Irrigation, Inc., Dakota Growers Pasta Company, Harmony Health and Beauty, Inc.,
Harmony Pharmacy & Health Centers, Inc., Summit Research Labs, Inc. Ohio Medical Corporation, and Huamei Capital Company, formerly portfolio companies of the Fund.
|
|
|
|
|
Executive Officers
|
|
|
|
|
|
|
|
|
|
|
Bruce Shewmaker
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 70
|
|
Managing Director
|
|
Indefinite term/12 years, 7 months
|
|
Mr. Shewmaker currently serves as Managing Director of the Adviser and the Fund. Mr. Shewmaker worked directly for the Fund from November 2003 through October 2006. Previously, Mr. Shewmaker served as
an Independent Director of the Fund in 2003. Mr. Shewmaker currently serves on the board of Garrison Capital Inc. Mr. Shewmaker previously served on the board of Harris & Harris Group, Inc. Mr. Shewmaker served as a director
for the following portfolio companies of the Fund: Baltic Motors Corporation, Phoenix Coal Corporation, Processclaims, Inc. Vendio Services, Inc., Velocitius B.V., and Vestal Manufacturing Enterprises, Inc. He currently serves on the Boards of
Foliofn, Inc., and Advantage Insurance Holdings Ltd (portfolio companies of the Fund) and MVC Partners LLC.
|
|
N/A
|
|
N/A
|
Scott Schuenke
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 36
|
|
Chief Financial Officer
|
|
Indefinite term/2 years, 8 months
|
|
Mr. Schuenke currently serves as the Chief Financial Officer of the Adviser, in addition to his service as Chief Financial Officer of the Fund. He previously served as the Chief Compliance Officer to the Fund and
the Adviser. Prior to joining the Fund in June 2004, Mr. Schuenke served as a
|
|
N/A
|
|
N/A
|
8
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
|
|
|
|
|
|
compliance officer with U.S. Bancorp Fund Services, LLC, from 2002 until he joined the Fund in 2004. Mr. Schuenke also served as the secretary of The Mexico Equity & Income Fund, Inc. and assistant secretary
of Tortoise Energy Infrastructure Corporation during his tenure at U.S. Bancorp Fund Services, LLC. He serves on the Board of NPWT Corporation, a portfolio company of the Fund. He previously served as a director of Vestal Manufacturing Enterprises, a
portfolio company of the Fund. Mr. Schuenke is a Certified Public Accountant.
|
|
|
|
|
Kevin Byrne
287 Bowman Avenue
2
nd
Floor
Purchase, NY 10577
Age: 57
|
|
Chief Compliance Officer
|
|
Indefinite/1 year, 4 months
|
|
Mr. Byrne currently serves as Chief Compliance Officer of the Adviser, in addition to his service as Chief Compliance Officer of the Fund. He also currently serves as Financial, Administrative and Compliance
Consultant/Member at Fisher Capital Corp, LLC and as Deputy Chief Compliance Officer for PPC Enterprises, LLC. He previously served as a Compliance Consultant to the Adviser from November 2013 to December 2014.
|
|
N/A
|
|
N/A
|
Jaclyn Rothchild
287 Bowman Avenue
2nd Floor
Purchase, NY 10577
Age: 37
|
|
Vice President/Secretary
|
|
Indefinite term/11 years, 7 months; Indefinite term/12 years, 5 months
|
|
Ms. Rothchild currently serves as Vice President and Secretary of the Adviser, in addition to her service as Vice President and Secretary of the Fund. Prior to joining the Fund in June 2002, she was an Associate
and Business Manager with Draper Fisher Jurvetson meVC Management Co. LLC, the former investment sub-adviser to the Fund, and an Associate at The Bank Companies (acquired by Newmark & Co. Real Estate), a commercial real estate
company. Ms. Rothchild serves as Vice President and Chief Operating Officer of Eleventh Street Partners, Inc.
|
|
N/A
|
|
N/A
|
9
|
|
|
|
|
|
|
|
|
|
|
(1)
Name, Address and Age
|
|
(2)
Positions(s) Held
with the Fund
|
|
(3)
Term of Office/
Length of Time
Served
|
|
(4)
Principal Occupation(s)
During Past 5 Years
|
|
(5)
Number of
Portfolios in
Fund Complex
Overseen by
Director or
Nominee for
Director
|
|
(6)
Other
Directorships
Held by
Director or
Nominee for
Director
During Past
5 Years
|
|
|
|
|
|
|
Ms. Rothchild serves on the Board of MVC Partners LLC, a portfolio company of the Fund. Ms. Rothchild was formerly an Advisory Board member of Forward Health.
|
|
|
|
|
-
(1)
-
Other
than the Fund.
(2)
Mr. Holtsberg
is an "interested person," as defined in the 1940 Act, of the Fund (an "Interested Director") because of his employment with the
Adviser.
(3)
Mr. Tokarz
is an Interested Director because he serves as an officer of the Fund.
Corporate Governance
The Board has adopted a charter for each of its Audit, Nominating/Corporate Governance/Strategy and Compensation Committees, as well as
a Corporate Governance Policy. The Audit Committee's charter is annexed hereto as Exhibit B. The Board has also adopted a Code of Ethics, which applies to, among others, all of the Fund's
officers and directors, as well as a Code of Ethics for Principal Executive and Senior Financial Executives that applies to and has been signed by the Principal Executive Officer and
the Chief Financial Officer of the Fund. These materials can be found on the Fund's website at www.mvccapital.com. Waivers, if any, of the Fund's Code of Ethics or Code of Ethics for Principal
Executive and Senior Financial Executives will be promptly disclosed on the Fund's website.
During
the fiscal year ended October 31, 2015, the Board held 10 meetings. During the last fiscal year, each of the nominees then serving as Directors attended more than 75% of
the aggregate total number of meetings of the Board and the total number of meetings of any committee of the Board on which such nominee served. Currently, a majority of the Directors are not
"interested persons", as defined in the Investment Company Act of 1940 (the "1940 Act"), of the Fund (the "Independent Directors"). Mr. Knapp has been appointed by the Independent Directors to
serve as the "Lead" Independent Director and, in that role, serves as the Presiding Director over executive sessions of non-management directors. Mr. Tokarz, the Portfolio Manager and principal
executive officer of the Fund and the Adviser, serves as Chairman of the Board. Although he is an Interested Director (
i.e.
, not independent), the Board
believes that by having the principal executive serve as Chairman, it can more effectively conduct the regular business of the Fund and that through its regularly-scheduled executive sessions, the
Independent Directors have adequate opportunity to serve as an independent, effective check on management and protect stockholders' interests. Furthermore, as described below, the Board has three
committees performing critical functions for the Fund's governance and operations: the Audit, Valuation and Nominating/Corporate Governance/Strategy Committees, and all three are comprised exclusively
of Independent Directors.
10
Interested
parties should communicate with the Lead Independent Director or with the non-management directors as a group according to the following procedures established by the Fund for
stockholders' communication with the Board: any communications intended for the Board should be sent to the Fund at the Fund's address and any such communication will be forwarded to the Board (or
applicable Board member) or disclosed to the Board (or applicable Board member) at its next regular meeting.
The Audit Committee's primary purposes are:
-
-
oversight responsibility with respect to: (i) the adequacy of the Fund's accounting and financial reporting processes, policies
and practices; (ii) the integrity of the Fund's financial statements and the independent audit thereof; (iii) the adequacy of the Fund's overall system of internal controls and risk
management processes (to the extent not separately evaluated and monitored by the full Board) and, as appropriate, the internal controls of certain service providers; (iv) the Fund's compliance
with certain legal and regulatory requirements; (v) determining the qualification and independence of the Fund's independent auditors; and (vi) the Fund's internal audit function, if
any; and
-
-
oversight of the preparation of any report required to be prepared by the Committee pursuant to the rules of the SEC for inclusion in
the Fund's annual proxy statement with respect to the election of directors.
The
members of the Audit Committee are Emilio Dominianni, Gerald Hellerman and William Taylor. Gerald Hellerman is the chairman of the Audit Committee. During the fiscal year ended
October 31, 2015, the Audit Committee held 10 meetings. The Audit Committee oversees the Fund's risk management processes, including risks relating to investments, compliance and valuations,
and the Fund's Disclosure Controls and Procedures (including internal controls over financial reporting).
The Valuation Committee, the principal purpose of which is to determine the fair values of securities in the Fund's portfolio for which
market quotations are not readily available, is currently comprised of Messrs. Dominianni, Hellerman and Knapp. Mr. Knapp is the Chairman of the Valuation Committee. The Valuation
Committee held 8 meetings during the fiscal year ended October 31, 2015.
The Nominating/Corporate Governance/Strategy Committee (the "Nominating Committee"), the principal purposes of which are to consider
and nominate persons to serve as Independent Directors, to oversee the composition and governance of the Board and its committees and to provide strategic direction with respect to the Fund, is
currently comprised of Messrs. Dominianni, Goldstein, Hellerman, Knapp and Taylor, each of whom is an Independent Director. Mr. Dominianni is the Chairman of the Nominating Committee.
The Nominating Committee was established in January 2004.
The
Nominating Committee considers director candidates nominated by stockholders in accordance with procedures set forth in the Fund's By-Laws. The Fund's By-Laws provide that
nominations may be made by any stockholder of record of the Fund entitled to vote for the election of directors at a
meeting, provided that such nominations are made pursuant to timely notice in writing to the Secretary and are submitted in accordance with other applicable laws, rules or regulations regarding
director nominations. The Nominating Committee then determines the eligibility of any nominated candidate based on criteria described below. To be timely, a stockholder's notice must be received at
the principal executive offices of the Fund not less than 60 days nor more than 90 days prior to the
11
scheduled
date of a meeting. A stockholder's notice to the Secretary shall set forth: (a) as to each stockholder-proposed nominee, (i) the name, age, business address and residence
address of the nominee, (ii) the principal occupation or employment of the nominee, (iii) the class, series and number of shares of capital stock of the Fund that are owned beneficially
by the nominee, (iv) a statement as to the nominee's citizenship, and (v) any other information relating to the person that is required to be disclosed in solicitations for proxies for
election of directors pursuant to Section 14 of the Securities Exchange Act of 1934 (the "1934 Act"), and the rules and regulations promulgated thereunder; and (b) as to the stockholder
giving the notice, (i) the name and record address of the stockholder and (ii) the class, series and number of shares of capital stock of the corporation that are owned beneficially by
the stockholder. The Fund or the Nominating Committee may require a stockholder who proposes a nominee to furnish any such other information as may reasonably be required by the Fund to determine the
eligibility of the proposed nominee to serve as director of the Fund. The Nominating Committee held one (1) meeting during the fiscal year ended October 31, 2015.
In
addition, the Nominating Committee considers potential director candidates with input from various sources, which may include: current Directors, members of the management team, or an
outside search firm. The Nominating Committee seeks to identify candidates that possess, in its view, strong character, judgment, business experience and acumen. As a minimum requirement, any eligible
candidate who is not proposed to serve as an Interested Director (
i.e.
, a candidate who is not employed or proposed to be employed by the Fund or the
Adviser) must not be an "interested person" (as defined by the 1940 Act) of the Fund. The Nominating Committee also considers, among other factors, certain other relationships (beyond those delineated
in the 1940 Act) that might impair the independence of a proposed Director. Although the Board does not have a formal diversity policy, it endeavors to comprise itself of members with a variety of
professional backgrounds. (Each of the nominees' different professional backgrounds is set forth above beginning on page 6.)
In
determining to propose each of the nominees for election by stockholders as Directors, the Nominating Committee and the Board considered a variety of factors, including each of the
nominees' performance as current Directors and their professional background and experience. The Board noted the Directors' collective knowledge and experience in financial services, legal and
financial analysis, corporate finance, asset management, portfolio management and accounting, all of which strengthen the Board's collective qualifications. The Nominating Committee members considered
that Messrs. Tokarz and Holtsberg are not Independent Directors but recognized that they represent the Adviser, and, as such, help foster the Board's direct access to information regarding the
Adviser, which is the Fund's most significant service provider.
The Compensation Committee, the principal purpose of which is to oversee the compensation of the Independent Directors, is currently
comprised of Messrs. Hellerman and Knapp. Mr. Hellerman is the Chairman of the Compensation Committee. The Compensation Committee was established in March 2003. The Compensation
Committee annually reviews the overall compensation principles of the Fund governing the compensation and benefits of the Directors and officers, including developing and recommending, for the Board's
adoption, compensation for members of the Board. The Compensation Committee held one meeting during the fiscal year ended October 31, 2015.
The
Board has adopted a policy that encourages all Directors, to the extent reasonable and practicable, to attend the Fund's annual stockholders' meetings in person. All of the Directors
then serving attended the last annual meeting in person.
12
Director and Executive Officer Compensation
The Fund's officers do not receive any direct compensation from the Fund. The Fund does not currently have any employees and does not
expect to have any employees. Services necessary for its business are provided by individuals who are employees of the Adviser, and the Fund's administrator, U.S. Bancorp Fund Services, LLC (the
"Administrator"), pursuant to the terms of the Fund's amended and restated investment advisory and management agreement (the "Advisory Agreement") and administration agreement. Each of the Fund's
executive officers is an employee of the Adviser. The Fund's day-to-day investment operations are managed by the Adviser.
The
following table sets forth compensation paid by the Fund in all capacities during the fiscal year ended October 31, 2015 to all of our Directors. Our Directors have been
divided into two groupsInterested Directors and Independent Directors. The Interested Directors are "interested persons," as defined in the 1940 Act, of the Fund. No compensation is paid
to the Interested Directors. (The Fund is not part of any Fund Complex.) No information has been provided
with respect to executive officers of the Fund because the Fund's executive officers do not receive any direct compensation from the Fund.
|
|
|
|
|
|
|
|
|
Name of Person, Position
|
|
Fees Earned or
Paid in Cash
|
|
Stock Awards
|
|
All Other
Compensation(1)
|
|
Total
|
Interested Directors
|
|
|
|
|
|
|
|
|
Warren Holtsberg,
Director
|
|
None
|
|
None
|
|
None
|
|
None
|
Michael Tokarz,
Chairman and Portfolio Manager
|
|
None
|
|
None
|
|
None
|
|
None
|
Independent Directors
|
|
|
|
|
|
|
|
|
Emilio Dominianni,
Director
|
|
$80,000
|
|
None
|
|
None
|
|
$80,000
|
Phillip Goldstein,
Director
|
|
$70,000
|
|
None
|
|
None
|
|
$70,000
|
Gerald Hellerman,
Director
|
|
$90,000
|
|
None
|
|
None
|
|
$90,000
|
Robert Knapp,
Director
|
|
$90,000
|
|
None
|
|
None
|
|
$90,000
|
William Taylor,
Director
|
|
$70,000
|
|
None
|
|
None
|
|
$70,000
|
-
(1)
Directors
do not receive any pension or retirement benefits from the Fund.
Effective May 1, 2014, the fees payable to Independent Directors and the fees payable to the Chairman of the Audit Committee, Valuation
Committee, and Nominating Committee are as follows: Each Independent Director is paid an annual retainer of $70,000 ($80,000 for the Chairman of the Audit Committee and the non-Chairman members of the
Valuation Committee and $90,000 for the Chairman of the Valuation Committee) for up to five in-person Board meetings and committee meetings per year. In the event that more than five in-person Board
meetings and committee meetings occur, each
Director will be paid an additional $1,000 for an in-person meeting. Each Independent Director is also reimbursed by the Fund for reasonable out-of-pocket expenses. The Directors do not receive any
pension or retirement benefits from the Fund.
13
Director Equity Ownership
The following table sets forth, as of June 1, 2016 with respect to each Director and nominee, certain information regarding the
dollar range of equity securities beneficially owned in the Fund. The Fund does not belong to a family of investment companies.
|
|
|
|
|
(1)
Name of Director or Nominee
|
|
(2)
Dollar Range of Equity
Securities in the Fund
|
|
(3)
Aggregate Dollar Range of Equity
Securities of All Funds Overseen or to
be Overseen by Director or Nominee
in Family of Investment Companies
|
Independent Directors
|
|
|
|
|
Emilio Dominianni
|
|
Over $100,000
|
|
Over $100,000
|
Phillip Goldstein
|
|
Over $100,000
|
|
Over $100,000
|
Gerald Hellerman
|
|
Over $100,000
|
|
Over $100,000
|
Robert Knapp
|
|
Over $100,000
|
|
Over $100,000
|
William Taylor
|
|
Over $100,000
|
|
Over $100,000
|
Interested Directors
|
|
|
|
|
Warren Holtsberg(1)
|
|
$50,001-$100,000
|
|
$50,001-$100,000
|
Michael Tokarz(2)
|
|
Over $100,000
|
|
Over $100,000
|
-
(1)
Mr. Holtsberg
is an Interested Director because of his employment with the Adviser.
(2)
Mr. Tokarz
is an Interested Director because he serves as an officer of the Fund and controls the Adviser.
VOTE REQUIRED
The election of the nominees requires the affirmative vote of a plurality of the votes present or represented
by proxy at the Meeting and entitled to vote on the election of the nominees.
The Board recommends a vote "FOR" the election of all of the nominees.
14
PROPOSAL 2
RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Audit Committee and the Board, including all of the Independent Directors, have selected Grant Thornton LLP as the independent
registered public accounting firm for the Fund for the fiscal year ending October 31, 2016. On January 29, 2016, pursuant to the Audit Committee's recommendation, the Board approved
Grant Thornton LLP as the independent registered public accounting firm to serve as auditors for the Fund for the fiscal year ending October 31, 2016.
Ernst &
Young LLP previously served as the Fund's independent registered public accounting firm effective October 27, 2003. On June 29, 2015, Ernst & Young
LLP indicated to the Fund its determination not to stand for reappointment as the independent registered public accounting firm of the Fund for the fiscal year ended October 31, 2015. The
determination was accepted by the Fund's Audit Committee.
Ernst &
Young has issued its audit report on the Annual Report on Form 10-K for the fiscal year ended October 31, 2014 (the "2014 Financial Statements") (which
includes information regarding the Annual Report on Form 10-K for the fiscal year ended October 31, 2013 (the "2013 Financial Statements"). This
report did not include an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope, or accounting principles.
During
the Fund's fiscal years ended October 31, 2014 and October 31, 2015, and during the period between October 31, 2015 and the date hereof, there were no
disagreements between the Fund and Ernst & Young LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures which, if not
resolved to the satisfaction of Ernst & Young LLP, would have caused Ernst & Young LLP to make reference thereto in its report nor were there any "reportable events" as that term is
described in Item 304(a)(1)(v) of Regulation S-K, except as follows. In connection with the 2014 and the 2013 Financial Statements (where, as previously disclosed, 2014 had been
significantly delayed and 2013 has been restated), Ernst & Young LLP advised the Fund of a material weakness in internal controls over financial reporting relating to the design and operating
effectiveness of valuation related controls associated with investments in certain affiliated or controlled portfolio companies. To address the material weakness, in the second half of 2015 the Fund
adopted a corrective action plan which added new and/or enhanced controls surrounding the valuation process and financial reporting oversight of various controlled/affiliated portfolio companies,
including additional reviews (by one or more of the Fund's representatives) of the financial reporting of controlled and certain affiliated portfolio companies and additional reviews and testing of
valuation data of these controlled/affiliated portfolio companies. The Fund has also enhanced its internal audit plan to incorporate risk assessments of controlled and certain affiliated portfolio
companies. In addition, the Fund has retained a third party consultant to perform external reviews of certain fair valuations.
The
Fund requested and received a letter from Ernst & Young LLP addressed to the U.S. Securities and Exchange Commission confirming its agreement with the above statements. A copy
of such letter, dated July 6, 2015, was filed as an exhibit to the Form 8-K filed on July 6, 2015.
Grant
Thornton LLP has issued its audit report on the 2015 Financial Statements. Grant Thornton LLP noted in its report, its disclaimed opinion on the effectiveness of the Company's
internal control over financial reporting, relating to the matters discussed above. Grant Thornton LLP was unable to perform auditing procedures necessary to form an opinion on the Company's internal
control over financial reporting as of October 31, 2015 due to the fact that Grant Thornton LLP was engaged after October 31, 2015.
15
During
the fiscal years ended October 31, 2014 and October 31, 2015 and the subsequent interim period prior to engaging Grant Thornton LLP, neither the Company nor anyone
acting on the Company's behalf consulted Grant Thornton LLP regarding: (i) either the application of accounting principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the Company's financial statements; or (ii) any matter that was either the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K and the related
instructions to that item) or a reportable event (as defined in paragraph (a)(1)(v) of Item 304 of Regulation S-K).
The
firm of Grant Thornton LLP has extensive experience in investment company accounting and auditing. A representative of Grant Thornton LLP will attend the Meeting to respond to
appropriate questions and make a statement, if he/she so desires.
Neither
the Fund's Certificate of Incorporation nor the Fund's By-Laws require that the stockholders ratify the selection of Grant Thornton LLP as the Fund's independent registered
public accounting firm. The Board is submitting this matter to the stockholders as a matter of common industry practice. If the stockholders do not ratify the selection, the Audit Committee will
reconsider whether or not to retain Grant Thornton LLP, but may retain such independent registered public accounting firm. Even if the selection is ratified, the Audit Committee and the Board, in
their discretion, may change the selection at any time during the year if they determine that such change would be in the best interests of the Fund. It is intended that the persons named in the
accompanying form of proxy will vote FOR the ratification of the selection of Grant Thornton LLP.
Grant
Thornton LLP, in accordance with Public Company Accounting Oversight Board Rule 3526, has confirmed to the Audit Committee that they are independent accountants with respect
to the Fund.
The
following are the aggregate fees billed to the Fund by Ernst & Young LLP and Grant Thornton during each of the last two fiscal years:
The aggregate fees billed for professional services rendered by Ernst & Young LLP for the audit of the Fund's annual financial
statements and review of financial statements in the Form 10-Q's for the fiscal years ended October 31, 2015 and October 31, 2014 were $0 and $749,000, respectively.
The
aggregate fees billed for professional services rendered by Grant Thornton LLP for the audit of the Fund's annual financial statements and review of financial statements in the
Form 10-Q's for the fiscal year ended October 31, 2015 were $970,000.
The aggregate fees billed by Ernst & Young LLP for assurance and related services that were reasonably related to the
performance of the audit or review of our financial statements for the fiscal years ended October 31, 2015 and October 31, 2014 were $50,000 and $75,000, respectively.
The
aggregate fees billed by Grant Thornton LLP for assurance and related services that were reasonably related to the performance of the audit or review of our financial statements for
the fiscal year ended October 31, 2015 were $0.
The aggregate fees billed by Ernst & Young LLP for services rendered with respect to tax compliance, tax advice and tax planning
for the fiscal years ended October 31, 2015 and October 31, 2014 were $0 and $65,000, respectively.
16
The
aggregate fees billed by Grant Thornton LLP for services rendered with respect to tax compliance, tax advice and tax planning for the fiscal year ended October 31, 2015 were
$4,100.
The aggregate fees billed by Ernst & Young LLP for any other products or services for the fiscal years ended October 31,
2015 and October 31, 2014 were $4,000 and $24,000, respectively.
The
aggregate fees billed by Grant Thornton LLP for any other products or services for the fiscal year ended October 31, 2015 were $0.
The
Audit Committee Charter requires that the Audit Committee pre-approve all audit and non-audit services to be provided to the Fund by the independent accountants; provided, however,
that the Audit Committee may specifically authorize its Chairman to pre-approve the provision of any non-audit service to the Fund. Further, the foregoing pre-approval policy may be waived, with
respect to the provision of any non-audit services, consistent with the exceptions provided for in the federal securities laws. All of the audit and tax services provided by Ernst & Young LLP
for the fiscal year ended October 31, 2014 and by Ernst & Young LLP and Grant Thornton LLP for the fiscal year ended October 31, 2015 were pre-approved by the Audit Committee or
its Chairman. For the fiscal years ended October 31, 2014 and October 31, 2015, the Fund's Audit Committee did not waive the pre-approval requirement with respect to any non-audit
services provided to the Fund by Ernst & Young LLP or Grant Thornton LLP.
Report of Audit Committee
The information contained in this report shall not be deemed to be "soliciting material" or "filed" or
incorporated by reference in future filings with the SEC, or subject to the liabilities of Section 18 of the 1934 Act, except to the extent that we specifically incorporate it by reference into
a document filed under the Securities Act of 1933 or the 1934 Act.
The independent accountants are responsible for performing an independent audit of the Fund's financial statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States) and expressing an opinion as to the conformity of such financial statements with generally accepted accounting principles in the United States of
America and for auditing and reporting on the effectiveness of the Fund's internal control over financial reporting.
In
connection with the Fund's audited financial statements for the fiscal year ended October 31, 2015, the Audit Committee has: (i) reviewed and discussed with management
the Fund's audited financial statements for the fiscal year ended October 31, 2015; (ii) discussed with the independent auditors of the Fund for the fiscal year ended October 31,
2015, the matters required to be discussed by Statements on Auditing Standards (SAS) No. 61 (Codification of Statements on Auditing Standards, AU § 380);
(iii) received the written disclosures and a letter from Grant Thornton LLP regarding, and discussed with Grant Thornton, its independence; and (iv) authorized the inclusion of
the audited financial statements of the Fund for the fiscal year ended October 31, 2015 in the Fund's Annual Report to Stockholders for filing with the SEC.
Each
of the current members of the Audit Committee, Messrs. Dominianni, Hellerman and Taylor, is considered an Independent Director. Each member of the Audit Committee meets the
applicable independence and experience requirements, and the Board has determined that Mr. Hellerman is an "audit committee financial expert," as defined under Item 407(d)(5) of
Regulation S-K of the 1934 Act. Mr. Hellerman is the Chairman of the Audit Committee.
The
Audit Committee has approved, and recommended to the Board that it approve, Grant Thornton LLP to serve as the Fund's independent registered public accounting firm for the fiscal
year
17
ending
October 31, 2016 and that the selection of Grant Thornton LLP be submitted to the Fund's stockholders for ratification.
The Audit Committee
Gerald Hellerman (Chairman)
Emilio Dominianni
William Taylor
VOTE REQUIRED
The affirmative vote of a majority of the votes cast at the Meeting is required to ratify the selection of
Grant Thornton LLP as independent registered public accounting firm for the Fund for the period ending October 31, 2016.
The Board recommends a vote "FOR" the ratification of the selection of Grant Thornton LLP as the independent registered public accounting
firm for the Fund for the period ending October 31, 2016.
VOTING INFORMATION
A quorum is constituted by the presence in person or by proxy of the holders of a majority of the outstanding shares of the Fund
entitled to vote at the Meeting. For purposes of determining the presence of a quorum for transacting business at the Meeting, abstentions and broker non-votes will be treated as shares that are
present at the Meeting.
In
the event that a quorum is not present at the Meeting, or in the event that a quorum is present at the Meeting but sufficient votes to approve any proposal are not received, the
persons named as proxies, or their substitutes, may propose one or more adjournments of the Meeting to permit the further solicitation of proxies. Any adjourned session or sessions may be held after
the date set for the Meeting without notice, except announcement at the Meeting (or any adjournment thereof); provided, that if the Meeting is adjourned to a date that is more than 30 days
after the date for which the Meeting was originally called, written notice will be provided to stockholders. Any adjournment will require the affirmative vote of a majority of the shares represented
at the Meeting in person or by proxy. In the event an adjournment is proposed because a quorum is not present for the proposals, the persons named as proxies will vote those proxies they are entitled
to vote FOR all of the nominees or FOR the ratification of the selection of Grant Thornton LLP in favor of such adjournment, and will vote those proxies required to WITHHOLD on any nominee or AGAINST
the ratification of the selection of Grant Thornton LLP, against any such adjournment.
Most
beneficial owners whose shares are held in street name will receive voting instruction forms from their banks, brokers or other agents, rather than the Fund's Proxy Card. A number
of banks and brokerage firms are participating in a program that offers a means to grant proxies to vote shares via the Internet or by telephone. If your shares are held in an account with a bank or
broker participating in this program, you may grant a proxy to vote those shares via the Internet or telephonically by using the website or telephone number shown on the instruction form received from
your broker or bank.
EXPENSES OF SOLICITATION
The cost of preparing, assembling and mailing this Proxy Statement, the Notice of Annual Meeting of Stockholders and the enclosed Proxy
Card, as well as the costs associated with the proxy solicitation, if necessary, will be borne by the Fund.
18
OTHER MATTERS AND ADDITIONAL INFORMATION
Other Business at the Meeting.
The Board does not intend to bring any matters before the Meeting other than as stated in this Proxy Statement, and is not aware that
any other matters will be presented for action at the Meeting. If any other matters properly come before the Meeting, it is the intention of the persons named as proxies to vote on such matters in
accordance with their best judgment, unless specific instructions have been given.
Future Stockholder Proposals.
If a stockholder intends to present a proposal at the next annual meeting of stockholders of the Fund to be held in 2017 (to discuss
fiscal 2016 results) and desires to have the proposal included in the Fund's proxy statement and form of proxy for that meeting, the stockholder must deliver the proposal to the Secretary at the
principal executive office of the Fund, 287 Bowman Avenue, 2nd Floor, Purchase, New York 10577, within a reasonable time before the solicitation is made. The submission of a proposal does not
guarantee its inclusion in the proxy statement and is subject to limitations under the 1934 Act. The proposals must be submitted in a manner consistent with applicable law.
Results of Voting.
Stockholders will be informed of the voting results of the Meeting in a Form 8-K, which will be filed with the SEC on or before
September 2, 2016.
ADDITIONAL INFORMATION ABOUT THE FUND
Other Information about the Investment Adviser.
The following individuals are the principal executive officers of our investment adviser. The principal business address of each such
person is c/o The Tokarz Group Advisers LLC, at 287 Bowman Avenue, 2nd Floor, Purchase, NY 10577. The principal occupations of the following individuals are set forth under "Election of Directors" in
Proposal 1 above.
|
|
|
Name
|
|
Position
|
Michael Tokarz
|
|
Manager
|
Warren Holtsberg
|
|
Co-Head of Portfolio Management
|
Bruce Shewmaker
|
|
Managing Director
|
Scott Schuenke
|
|
Chief Financial Officer
|
Kevin Byrne
|
|
Chief Compliance Officer
|
Jaclyn Shapiro-Rothchild
|
|
Vice President and Secretary
|
Brokerage.
During the 2015 fiscal year, the Fund paid no brokerage commissions to any broker: (i) that is an affiliated person of the Fund;
(ii) that is an affiliated person of such person; or (iii) an affiliated person of which is an affiliated person of the Fund, any principal underwriter, administrator or the Adviser.
Administrator.
U.S. Bancorp Fund Services, LLC, located at 777 E. Wisconsin Avenue, Milwaukee, WI 53202, serves as the administrator, custodian and
accounting agent of the Fund.
19
Certain Relationships and Related Transactions.
The Fund has procedures in place for the review, approval and monitoring of transactions involving the Fund and certain persons related
to the Fund. For example, the Fund has a Code of Ethics that generally prohibits, among others, any officer or director of the Fund from engaging in any transaction where there is a conflict between
such individual's personal interest and the interests of the Fund. As a business development company, the 1940 Act also imposes regulatory restrictions on the Fund's ability to engage in certain
related party transactions. However, the Fund is permitted to co-invest in certain portfolio companies with its affiliates to the extent consistent with applicable law or regulation and, if necessary,
subject to specified conditions set forth in an exemptive order obtained from the SEC. Since the Fund's current management team joined the Fund in 2003, no transactions have been effected pursuant to
the exemptive order. As a matter of policy, our Board has required that any related-party transaction (as defined in Item 404 of Regulation S-K) must be subject to the advance
consideration and approval of the Independent Directors, in accordance with applicable procedures set forth in Section 57(f) of the 1940 Act.
The
principal equity owner of the Adviser is Mr. Tokarz, our Chairman. Our senior officers and Mr. Holtsberg have other financial interests in the Adviser
(
i.e.
, based on the Adviser's performance). In addition, our officers and the officers and employees of the Adviser may serve as officers, directors or
principals of entities that operate in the same or related line of business as we do or of investment funds managed by the Adviser or our affiliates. These related businesses currently include a
private equity fund (the "PE Fund"), the establishment of which was authorized by our Board. As previously disclosed in our 10-K reports for the last three fiscal years, an indirect wholly-owned
subsidiary of the Fund serves as the general partner and the Adviser serves as the portfolio manager of the PE Fund, and both entities receive a portion of the carried interest and management fees
generated from the PE Fund. Our Board has approved a specific policy regarding the allocation of investment opportunities, which was set forth in the reports. Consistent with the Board-approved policy
concerning the allocation of investment opportunities, the PE Fund received a priority allocation of all private equity investments that would otherwise have been non-diversified investments
(investments that represent more than 5% of the Company's total assets or more than 10% of the outstanding voting securities of an issuer) for the Company during the PE Fund's investment period, which
ended on October 28, 2014.
Further,
Mr. Tokarz is a co-founder of PPC Enterprises LLC ("PPC"), a registered investment adviser that provides advisory services to Series A of Public Pension Capital,
LLC (the "PPC Fund"). As a result of this relationship and pursuant to a shared services arrangement with PPC, certain of PPC's principals and other PPC investment professionals may make themselves
available, from time to time, to consult with the Adviser on investment matters relating to MVC or the PE Fund. In this connection,
certain employees of PPC are "associated persons" of TTG Advisers when providing certain services on behalf of the Adviser and, in this capacity, are subject to its oversight and supervision.
Likewise, the Adviser makes available to PPC certain investment professionals that are employed by the Adviser to provide services for PPC and the PPC Fund.
Section 16(a) Beneficial Ownership Reporting Compliance.
Section 16(a) of the 1934 Act, and Section 30(h) of the 1940 Act, taken together, require that the Directors, officers of
the Fund and beneficial owners of more than 10% of the equity securities of the Fund (collectively, "Reporting Persons") file with the SEC reports of their beneficial ownership and changes in their
beneficial ownership of the Fund's securities. Based solely on its review of the copies of such reports, the Fund believes that each of the Reporting Persons who was a Reporting Person during the
fiscal year ended October 31, 2015 has complied with applicable filing requirements.
20
Exhibit A
attached hereto identifies holders of more than 5% of the shares of the Fund's common stock as of June 1, 2016.
|
|
|
|
|
By Order of the Board of Directors
|
|
|
Michael Tokarz
Chairman
|
July 21,
2016
Stockholders who do not expect to be present at the Meeting and who wish to have their shares voted are requested to mark, sign and date the enclosed Proxy Card and return it
in the enclosed envelope. No postage is required if mailed in the United States. Alternatively, you have the ability to vote your shares by the Internet or by telephone.
21
EXHIBIT A
The following table sets forth, as of June 1, 2016, each stockholder who owned more than 5% of the Fund's outstanding shares of
common stock, each current director, each nominee for director, the Fund's executive officers, and the directors and executive officers as a group. Unless otherwise indicated, the Fund believes that
each beneficial owner set forth in the table has sole voting and investment power.
|
|
|
|
|
Shareholder Name and Address
|
|
Amount of
Shares Owned
|
|
Percentage of
Fund Held
|
Wynnefield Capital Management, LLC
450 7th Avenue, Suite 509
New York, NY 10123
|
|
1,600,000(1)
|
|
7.05%
|
RiverNorth Capital Management, LLC
325 N. Lasalle Street
Suite 645 Chicago, IL 60654
|
|
1,404,351(2)
|
|
6.19%
|
Bulldog Investors LLC
Park 80 West, Suite 708
250 Pehle Ave,
Saddle Brook, NJ 07663
|
|
1,378,812(3)
|
|
6.07%
|
Royce & Associates LP
745 Fifth Avenue
New York, NY 10151
|
|
1,218,700(4)
|
|
5.37%
|
Interested Directors
|
|
|
|
|
Warren Holtsberg
|
|
7,000
|
|
*
|
Michael Tokarz
|
|
931,042.57
|
|
4.10%
|
Independent Directors
|
|
|
|
|
Emilio Dominianni
|
|
56,049.64
|
|
|
Phillip Goldstein
|
|
1,008,551**
|
|
4.44%
|
Gerald Hellerman
|
|
63,000
|
|
*
|
Robert Knapp
|
|
672,858.37***
|
|
2.96%
|
William Taylor
|
|
49,746.40
|
|
*
|
Executive Officers
|
|
|
|
|
Bruce Shewmaker
|
|
23,365.72
|
|
*
|
Scott Schuenke
|
|
3,086.14
|
|
*
|
Jaclyn Shapiro-Rothchild
|
|
3,118.73
|
|
*
|
Kevin Byrne
|
|
0.0
|
|
*
|
All directors and executive officers as a group (11 in total)****
|
|
2,817,818.57
|
|
12.41%
|
-
(1)
Based
on information contained in the Form 13D filed with the SEC on June 1, 2016.
(2)
Based
on information contained in Form 13F filed with the SEC on May 16, 2016.
(3)
Based
on information contained in Form 13F filed with the SEC on May 13, 2016. With respect to 719,272 of these Shares, Bulldog Investors LLC
shares voting and investment power.
(4)
Based
on information contained in Form 13F filed with the SEC on May 11, 2016.
*
Less
than 1%.
**
971,301
of these Shares are owned by private investment funds managed by Bulldog Investors, LLC. Mr. Goldstein is a principal of Bulldog Investors and
a limited partner in certain of the funds. Mr. Goldstein disclaims all beneficial ownership
A-1
in
these Shares to the extent such ownership exceeds his pecuniary interest therein. For purposes of calculating the "Percentage of Fund Held", however, all of Mr. Goldstein's 1,008,551.00
Shares have been counted as being beneficially owned. Based on information contained in Form 4 filed on December 10, 2015.
-
***
-
300,765.37
of these Shares are held by Ironsides Holdings, LLC, which is wholly owned by Robert Knapp. 285,000 Shares are held by a private fund and
87,093 Shares by an account, both managed by Ironsides Partners LLC. Mr. Knapp is a principal of the investment adviser of the separately managed account and a principal of the general partner
and investment adviser of the private fund. Mr. Knapp is also a limited partner in a fund that has an interest in the private fund. The investment adviser has sole voting and dispositive power
over the 372,093 Shares owned. Mr. Knapp disclaims all beneficial ownership of such Shares, except to the extent of his pecuniary interest therein. For purposes of calculating the "Percentage
of Fund Held," however, all of the Shares have been counted as being beneficially owned. Additionally, 672,858.37 Shares are pledged as security to margin accounts. Based on information contained in
Form 4 filed on October 10, 2014.
-
****
-
Unless
indicated by footnote above, none of the Directors or Executive Officers' Shares are pledged as security.
A-2
EXHIBIT B
MVC CAPITAL, INC.
AMENDED AND RESTATED AUDIT COMMITTEE CHARTER
January 26,
2010
This
charter sets forth the purpose, authority and responsibilities of the Audit Committee of the Board of Directors (the "Board") of MVC Capital, Inc. (the "Fund"), a Delaware
corporation.
Purposes
The Audit Committee of the Board (the "Committee") has as its primary purposes:
(i) oversight
responsibility with respect to: (a) the adequacy of the Fund's accounting and financial reporting processes, policies and practices; (b) the
integrity of the Fund's financial statements and the independent audit thereof; (c) the adequacy of the Fund's overall system of internal controls and risk management processes (to the extent
not separately evaluated and monitored by the full Board) and, as appropriate, the internal controls of certain service providers; (d) the Fund's compliance with certain legal and regulatory
requirements; (e) determining the qualification and independence of the Fund's independent auditors; and (f) the Fund's internal audit function, if any; and
(ii) oversight
of the preparation of any report required to be prepared by the Committee pursuant to the rules of the Securities and Exchange Commission ("SEC") for
inclusion in the Fund's annual proxy statement with respect to the election of directors.
Authority
The Committee has been duly established by the Board and shall have the resources and authority appropriate to discharge its
responsibilities, including the authority to retain counsel and other experts or consultants at the expense of the Fund. The Committee has the authority and responsibility to retain and terminate the
Fund's independent auditors. In connection therewith, the Committee must evaluate the independence of the Fund's independent auditors and receive the auditors' specific representations as to their
independence.
Composition and Term of Committee Members
The Committee shall be comprised of a minimum of three Directors of the Board. To be eligible to serve as a member of the Committee, a
Director must be an "Independent Director", which term shall mean a Director who is not an "interested person," as defined in the Investment Company Act of 1940, as amended, of the Fund. The members
of the Committee shall designate one member to serve as Chairman of the Committee.
Each
member of the Committee shall serve until a successor is appointed.
The
Board must determine whether: (i) the Committee has at least one member who is an "audit committee financial expert," ("ACFE") as such term is defined in the rules adopted
under Section 407 of the Sarbanes-Oxley Act of 2002; (ii) the Committee has at least one member who possesses "accounting and financial management expertise" (as such term is described
under the New York Stock Exchange Listing Requirements) which may be based on past employment expertise, professional certification in accounting or other comparable experience or background
that indicates an individual's financial sophistication; and (iii) each member of the Committee possesses sufficient "financial literacy," as required under the New York Stock Exchange
Listing Requirements. The designation of a person as an ACFE is not intended to impose any greater responsibility or liability on that person than
B-1
the
responsibility and liability imposed on such person as a member of the Committee, nor does it decrease the duties and obligations of other Committee members or the Board.
Meetings
The Committee shall meet on a regular basis and no less frequently than quarterly. The Committee shall meet, at a minimum, within
90 days prior to the filing of each annual and quarterly report of the Fund on Forms 10-K and 10-Q, respectively. Periodically, the Committee shall meet to discuss with management the
annual audited financial statements and quarterly financial statements, including the Fund's disclosures under "Management's Discussion and Analysis of Financial Condition and Results of Operations."
Periodically, the Committee should meet separately with each of management, any personnel responsible for the internal audit function and, if deemed necessary, the Fund's administrator and independent
auditors to discuss any matters that the Committee or any of these persons or firms believe should be discussed privately. The Committee may request any officer or employee of the Fund, or the Fund's
legal counsel (or counsel to the Independent Directors of the Board) or the Fund's independent auditors to attend a meeting of the Committee or to meet with any members of, or consultants to, the
Committee.
Minutes
of each meeting will be taken and circulated to all members of the Committee in a timely manner.
Any
action of the Committee requires the vote of a majority of the Committee members present, whether in person or otherwise, at the meeting at which such action is considered. At any
meeting of the Committee, (i) any two members of the Committee or (ii) one member of the Committee if this member is the Chairman of the Committee, shall constitute a quorum for the
purpose of taking any action.
Duties and Powers and of the Committee
The duties and powers of the Committee include, but are not limited to, the
following:
-
-
bears direct responsibility for the appointment, compensation, retention and oversight of the work of the Fund's independent auditors
(including resolution of disagreements between management and the auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or performing other audit, review or
attest services for the Fund, and the independent auditors must report directly to the Committee;
-
-
set the compensation for the independent auditors, such amount to be paid by the Fund;
-
-
evaluate the independence of the Fund's independent auditors and receive the auditors' specific representations as to their
independence;
-
-
to the extent required by applicable law, pre-approve: (i) all audit and non-audit services that the Fund's independent
auditors provide to the Fund and (ii) all non-audit services that the Fund's independent auditors provide to the Fund's investment adviser and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing services to the Fund, if the engagement relates directly to the operations and financial reporting of the Fund (To the extent
specifically authorized by the Audit Committee, the Chairman of the Audit Committee may pre-approve the provision of any non-audit services to the Fund.);
-
-
meet with the Fund's independent auditors, including private meetings, as necessary to (i) review the arrangements for and
scope of the annual audit and any special audits; (ii) discuss any matters of concern relating to the Fund's financial statements, including any adjustments to such statements recommended by
the auditors, or other results of the audit; (iii) review any audit problems or difficulties with management's response; (iv) consider the auditors' comments with
B-2
B-3
-
-
require the Fund's independent auditors to report any instance of an audit partner of those auditors earning or receiving compensation
based on that partner procuring engagements with the Fund to provide any services other than audit, review or attest services;
-
-
resolve any disagreements between the Fund's management and independent auditors concerning the Fund's financial reporting;
-
-
to the extent there are Directors who are not members of the Committee, report its activities to the Board on a regular basis and to
make such recommendations with respect to the above and other matters as the Committee may deem necessary or appropriate;
-
-
discuss and approve any Fund press releases relating to its financial statements (to the extent such releases are not discussed and
approved by the Valuation Committee, the Board or the Chairman of the Committee);
-
-
to the extent not separately evaluated and monitored by the full Board, oversee the Fund's risk management processes, including risks
relating to investments, compliance and valuations, and discuss any policies with respect to risk management;
-
-
set clear hiring policies for employees or former employees of the independent auditors;
-
-
conduct an annual performance evaluation of the Committee;
-
-
review the Committee's charter at least annually and recommend any material changes to the Board; and
-
-
review such other matters as may be appropriately delegated to the Committee by the Board.
B-4
INSTRUCTIONS FOR SIGNING PROXY CARDS
The following general rules for signing Proxy Cards may be of assistance to you and avoid the time and expense involved in validating
your vote if you fail to sign your Proxy Card properly.
1.
Individual Accounts:
Sign your name exactly as it appears in the registration on the Proxy Card.
2.
Joint Accounts:
Either party may sign, but the name of the party signing should conform exactly to the name
shown in the registration on the Proxy Card.
3.
All Other Accounts:
The capacity of the individual signing the Proxy Card should be indicated unless it is
reflected in the form of registration. For example:
|
|
|
Registration
|
|
Valid Signatures
|
CORPORATE ACCOUNTS
|
|
|
(1) ABC Corp.
|
|
ABC Corp.
|
(2) ABC Corp.
|
|
John Doe, Treasurer
|
(3) ABC Corp. c/o John Doe, Treasurer
|
|
John Doe
|
(4) ABC Profit Sharing Plan
|
|
John Doe, Treasurer
|
TRUST ACCOUNTS
|
|
|
(1) ABC Trust
|
|
Jane B. Doe, Trustee
|
(2) Jane B. Doe, Trustee u/t/d 12/28/78
|
|
Jane B. Doe
|
CUSTODIAL OR ESTATE ACCOUNTS
|
|
|
(1) John B. Smith, Cust. f/b/o John B. Smith Jr. UGMA
|
|
John B. Smith
|
(2) John B. Smith
|
|
John B. Smith, Jr., Executor
|
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held on August 30, 2016, for MVC Capital, Inc. This communication presents only an overview of the more complete proxy materials that are available to you on the Internet. We encourage you to access and review all of the important information contained in the proxy materials before voting. To view the proxy statement, annual report and privacy policy, go to www.proxydocs.com/MVC. To submit your proxy while visiting this site, you will need the 12 digit control number in the box below. Under United States Securities and Exchange Commission rules, proxy materials do not have to be delivered in paper. Proxy materials can be distributed by making them available on the Internet. We have chosen to use these procedures for our 2016 Annual Meeting and need YOUR participation. If you want to receive a paper or e-mail copy of the proxy materials, you must request one. There is no charge to you for requesting a copy. In order to receive a paper package in time for this years annual meeting, please make this request on or before August 19, 2016. For a Convenient Way to VIEW Proxy Materials and VOTE Online go to: www.proxydocs.com/MVC Proxy Materials Available to View or Receive: 1. Proxy Statement 2. Annual Report and Privacy Policy Printed materials may be requested by one of the following methods: * If requesting material by e-mail, please send a blank e-mail with the 12 digit control number (located below) in the subject line. No other requests, instructions or other inquiries should be included with your e-mail requesting material. You must use the 12 digit control number located in the shaded gray box below. Notice of Annual Meeting Date:Tuesday, August 30, 2016 Time:3:00 P.M. (Eastern Time) Place:Offices of Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas, New York, NY 10036 The purpose of the Annual Meeting is to take action on the following proposals: The Board of Directors recommends that you vote FOR the following. 1. Election of Directors Nominees01 Emilio Dominianni03 Gerald Hellerman05 Robert Knapp07 Michael Tokarz 02 Phillip Goldstein04 Warren Holtsberg06 William Taylor The Board of Directors recommends that you vote FOR the following. 2. To ratify the selection of Grant Thornton LLP as the Funds independent registered public accounting firm for fiscal year 2016. *E-MAIL paper@investorelections.com TELEPHONE (866) 648-8133 INTERNET www.investorelections.com/MVC
Annual Meeting of MVC Capital, Inc. to be held on August 30, 2016 for Holders as of July 1, 2016 This proxy is being solicited on behalf of the Board of Directors VOTED BY: Annual Meeting of MVC Capital, Inc. Date: August 30, 2016 Time: 3:00 P.M. (Eastern Time) Place: Offices of Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas, New York, NY 10036 Please make your marks like this: Use dark black pencil or pen only Board of Directors Recommends a Vote FOR proposals 1 and 2. INTERNET Cast your vote online. View Meeting Documents. Go To: www.proxypush.com/mvc 1. To elect seven nominees to serve as members of the Board of Directors of the Fund: OR DIRECTORS RECOMMEND For For For For For For For TELEPHONE Call 866-390-5403 FORWITHHOLD Use any touch-tone telephone. Have your Proxy Card/Voting Instruction Form ready. Follow the simple recorded instructions. OR MAIL Mark, sign and date your Proxy Card/Voting Instruction Form. Detach your Proxy Card/Voting Instruction Form. Return your Proxy Card/Voting Instruction Form in the postage-paid envelope provided. The undersigned hereby appoints Michael Tokarz and Scott Schuenke, and each or either of them, as the true and lawful attorneys of the undersigned, with full power of substitution and revocation, and authorizes them, and each of them, to vote all the shares of capital stock of MVC Capital, Inc. which the undersigned is entitled to vote at said meeting and any adjournment thereof upon the matters specified and upon such other matters as may be properly brought before the meeting or any adjournment thereof, conferring authority upon such true and lawful attorneys to vote in their discretion on such other matters as may properly come before the meeting and revoking any proxy heretofore given. THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, SHARES WILL BE VOTED FOR THE ELECTION OF THE DIRECTORS IN ITEM 1 AND FOR THE PROPOSAL IN ITEM 2 AND AUTHORITY WILL BE DEEMED GRANTED UNDER ITEM 3. All votes must be received by 11:59 P.M., Eastern Time, August 29, 2016. (01) Emilio Dominianni (02) Phillip Goldstein (03) Gerald Hellerman (04) Warren Holtsberg (05) Robert Knapp (06) William Taylor (07) Michael Tokarz DIRECTORS RECOMMEND FOR AGAINST ABSTAIN For 2. To ratify the selection of Grant Thornton LLP as the Funds independent registered public accounting firm for fiscal year 2016. 3. In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting or any adjournment thereof. EVENT # CLIENT # To attend the meeting and vote your shares in person, please mark this box. PROXY TABULATOR FOR MVC CAPITAL, INC. P.O. BOX 8016 CARY, NC 27512-9903 Authorized Signatures - This section must be completed for your Instructions to be executed. Please Sign Here Please Date Above Please Sign Here Please Date Above Please sign exactly as your name(s) appears on your stock certificate. If held in joint tenancy, all persons should sign. Trustees, administrators, etc., should include title and authority. Corporations should provide the full name of the corporation and title of the authorized officer signing the proxy. Please separate carefully at the perforation and return just this portion in the envelope provided.
Please separate carefully at the perforation and return just this portion in the envelope provided. Revocable Proxy MVC Capital, Inc. Annual Meeting of Shareholders August 30, 2016, 3:00 p.m. (Eastern Time) This Proxy is Solicited on Behalf of the Board of Directors The undersigned appoints Michael Tokarz and Scott Schuenke, each with full power of substitution, to act as proxies for the undersigned, and to vote all shares of common stock of MVC Capital, Inc. that the undersigned is entitled to vote at the Annual Meeting of Shareholders on Tuesday, August 30, 2016 at 3:00 p.m. at the offices of Kramer Levin Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, NY 10036, and any and all adjournments thereof, as set forth below. This proxy is revocable and will be voted as directed, but if no instructions are specified, this proxy will be voted: FOR the nominees for directors specified in Proposal 1 and FOR the ratification of Grant Thornton LLP as the Fund's independent registered public accounting firm for the fiscal year 2016 specified in Proposal 2. (CONTINUED AND TO BE SIGNED ON REVERSE SIDE)
QuickLinks
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS TO BE HELD AUGUST 30, 2016 MVC CAPITAL, INC.
IT IS IMPORTANT THAT PROXY CARDS BE RETURNED PROMPTLY.
Important Notice Regarding the Internet Availability of Proxy Materials for the Annual Meeting to be Held on August 30, 2016
ANNUAL MEETING OF STOCKHOLDERS OF MVC CAPITAL, INC. August 30, 2016 287 Bowman Avenue 2nd Floor Purchase, New York 10577 (914) 510-9400 PROXY STATEMENT
PROPOSAL 1 ELECTION OF DIRECTORS
Corporate Governance
Director and Executive Officer Compensation
Director Equity Ownership
VOTE REQUIRED
PROPOSAL 2 RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Report of Audit Committee
VOTE REQUIRED
VOTING INFORMATION
EXPENSES OF SOLICITATION
OTHER MATTERS AND ADDITIONAL INFORMATION
ADDITIONAL INFORMATION ABOUT THE FUND
EXHIBIT A
EXHIBIT B MVC CAPITAL, INC. AMENDED AND RESTATED AUDIT COMMITTEE CHARTER
INSTRUCTIONS FOR SIGNING PROXY CARDS
MVC Capital (NYSE:MVC)
Historical Stock Chart
From Jul 2024 to Aug 2024
MVC Capital (NYSE:MVC)
Historical Stock Chart
From Aug 2023 to Aug 2024