Home Alts News Provasi Cancels Dealer Manager Agreements in Wake of Company Shut-Down

Provasi Cancels Dealer Manager Agreements in Wake of Company Shut-Down

Provasi Capital Partners LP, the dealer manager for Pathway Capital Opportunity Fund and Priority Income Fund, has terminated its dealer manager agreements with both companies.

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Provasi Capital Partners LP, the dealer manager for Pathway Capital Opportunity Fund and Priority Income Fund, has terminated its dealer manager agreements with both companies, according to filings with the Securities and Exchange Commission.

Prospect Capital Management L.P. will continue to manage the investment activity and operations of Pathway Capital Opportunity Fund, an interval fund, and Priority Income Fund, a closed-end fund.

Prospect Capital Management manages Prospect Capital Corporation, a business development company traded on the NASDAQ Global Select Market with total assets of approximately $5.9 billion as of December 31, 2017.

The Pathway fund has not raised sufficient capital to build a large enough portfolio to generate sufficient revenue to cover its operating expenses and make distributions to its stockholders, the company said in the filing.

The DI Wire reported yesterday that anonymous sources disclosed that Provasi laid off its entire workforce and terminated its sales and distribution efforts earlier in the week. Provasi has yet to issue a formal statement on the move, but sources claim the company was struggling to raise equity in the current regulatory environment.

Priority Income Fund is a registered investment program that was created to acquire an investment portfolio of senior secured loans or pools of senior secured loans known as collateralized loan obligations. The offering was declared effective in May 2013 and raised $326.4 million in investor equity, including $18.3 million in redemptions.

Pathway Capital Opportunity Fund was previously a closed-end fund named Pathway Energy Infrastructure Fund Inc. that restructured as an interval fund and expanded its investment focus to include infrastructure and infrastructure-related companies. The offering was declared effective in September 2014 and raised a total of $9.2 million in investor equity since inception, including redemptions.

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