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ABDC: Alcentra Capital Plans to Evaluate Strategic Alternatives

By Lisa Thompson


Yesterday, the board of directors of Alcentra Capital (ABDC) announced it had hired Holihan Lockey to formally review strategic alternatives for the company. Alcentra’s new management has been in the process of weeding out underperforming legacy investments and rotating into upper middle-market senior secured investments. During this process, the stock has been trading at a significant discount to net asset value. Management has bought back stock and lowered the discount somewhat, but it is still one of the highest in the industry. We assume that one of alternatives would be an outright sale of the portfolio or the company to another manager. There has been no timetable set for the conclusion of the strategic alternatives review.

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