MVC Capital Reviewing Strategic Alternatives to Monetize U.S. Gas & Electric Investment

MVC Capital, Inc., a publicly traded business development company that makes private debt and equity investments, today announced that U.S. Gas & Electric, Inc. an MVC portfolio company, has engaged a Tier I investment bank to lead the pursuit of strategic alternatives for USG&E to maximize shareholder value, including a public equity offering (potentially in Canada) or a sale, which could monetize all or a portion of the Fund's investment.

USG&E, headquartered in North Miami Beach, Florida, is a retail energy supplier that sells natural gas and electricity to residential and small commercial customers.

Due to organic growth in the company and through strategic acquisitions which the Fund arranged, MVC's positions in USG&E have grown to be approximately 20% of the Fund's portfolio as of January 31, 2012. A monetization event is being sought for fiscal 2012.

"We are hopeful that we can foster a key liquidity event for the Fund's shareholders," said Michael Tokarz, Chairman and Portfolio Manager of MVC. "We have spent a significant amount of time with USG&E over the last four plus years and take pride in working with this management team. We are pleased with the prospect of the strategic opportunities being pursued," said Puneet Sanan, Chairman of USG&E and Managing Director of The Tokarz Group Advisers, LLC.