Wynnefield Capital Nominates Arthur Lipson For Election To MVC Capital Board

4/28/20

Wynnefield Capital, Inc. beneficial owners of approximately 8.5% of the outstanding common stock of MVC Capital Inc. (NYSE: MVC) and the Company's second largest shareholder, today announced the nomination of Arthur Lipson, a highly-qualified, independent candidate for election to MVC's nine member Board of Directors at the Company's 2020 Annual Meeting of Shareholders ("Annual Meeting"). The nomination of Mr. Lipson, is in addition to Wynnefield's prior nominations of John D. Chapman and Ron Avni to the Company's Board.

Nelson Obus, President of Wynnefield Capital, said, "We are pleased that Arthur Lipson, along with John Chapman and Ron Avni, will stand for election to MVC's Board at its upcoming annual meeting of shareholders. Each of these individuals are highly experienced and qualified to serve the best interests of MVC's shareholders."

Mr. Obus continued, "Arthur Lipson is an ideal candidate for our entirely independent, minority slate. He is a long-term shareholder of MVC with extensive financial, trading and investment expertise, particularly in the areas of closed-end funds."

"We are confident that Messrs. Chapman, Avni and Lipson would work diligently and collaboratively with their Board colleagues to reposition MVC for success. We would hope that these actions include an independent review of strategic alternatives, primarily a potential merger of MVC with another business development company to achieve necessary scale, paving the way for lower operating expenses and higher dividends."

In the event that MVC purports to increase the number of directors serving on the Board or otherwise increases the number of directors to be elected at the 2020 Annual Meeting, Wynnefield reserves the right to nominate additional persons as directors to fill any vacancies created by the increase or to fill any additional positions on the Board which MVC's shareholders shall vote on at the 2020 Annual Meeting.

Wynnefield Capital's director nominees are (in alphabetical order):

Ron Avni (44)

  • 20 years of extensive financial, operational and investment management experience.
  • Track record of successfully creating shareholder value within distressed companies and transforming these companies in collaboration with key stakeholders.
  • Adviser to companies on investment and business strategies.
  • Served as a portfolio manager at QVT Financial LP, a multi-billion-dollar investment firm where, among other things, he led investment activities in closed-end fund arbitrage and related special situations globally.
  • Served as senior quantitative analyst and trader at Weiss Asset Management from 2003 to 2005, where he developed quantitative trading methodologies and software as well as managed a broad array of the firm's business operations.
  • CFA® Charterholder. Received an AB in Physics, magna cum laude, from Harvard University and is enrolled in a PhD program at the University of Texas at Austin.

John D. Chapman (64)

  • Specializes in representing shareholder interests in connection with the operation and management of investment funds and ancillary assets.
  • Unique skillset, insights and qualifications to serve as a member of MVC's Board and any of its committees.
  • Extensive legal, financial analysis and corporate governance expertise.
  • Served as the chairman, executive director, or non-executive director of a number of public companies, both domestically and globally.
  • CFA® Charterholder and member of the New York State Bar Association. Received a B.A. from Bates College and a Juris Doctorate from The University of Texas.

Arthur D. Lipson (77)

  • Served as the managing member of Western Investment LLC, specializing in investing undervalued companies, particularly closed-end funds.
  • Served as a director of Pioneer Municipal and Equity Income Trust, during which time he oversaw the elimination of a steep discount to PBF's net asset value and the merger of PBF into Pioneer Tax Free Income Fund, an open end fund.
  • Previously headed all fixed income research for Lehman Brothers and Paine Weber, and is credited as the creator of the Kuhn Loeb Bond Indices, now known as the Bloomberg Barclay Indices.
  • Long-term shareholder of MVC.
  • Received a B.S. from the California Institution of Technology and a M.S. from Columbia University and


Additional biographical information regarding Wynnefield Capital's director nominees will be included in Wynnefield Capital's amended Statement of Beneficial Ownership on Schedule 13D to be filed with the SEC.

Kane Kessler, P.C. is providing legal counsel to Wynnefield Capital.

About Wynnefield Capital, Inc.

Established in 1992, Wynnefield Capital, Inc. is a value investor specializing in U.S. small cap situations that have company or industry specific catalysts.