VPC Impact Acquisition Holdings Sponsor II, LLC

VPC Specialty Lending Investments PLC (the "Company")

 Update Regarding its Holding in VPC Impact Acquisition Holdings Sponsor II, LLC

The Company notes that on 2 August 2021, VPC Impact Acquisition Holdings II (NASDAQ: VPCB) ("VPCB"), a special purpose acquisition company sponsored by VPC Impact Acquisition Holdings Sponsor II, LLC ("VPC Sponsor"), an affiliate of Victory Park Capital ("VPC"), announced it has entered into a definitive agreement to combine with FinAccel (https://finaccel.co/). For more information on the transaction please see the FinAccel and VPCB press release, which can be found here.

Through VPC Sponsor, the Company currently owns 1,029,833 Class B Shares and 833,529 private placement warrants in VPCB, held at an aggregate cost basis of US$1,254,358. The transaction implies an approximately US$2.5 billion post-merger enterprise value at a US$10.00 price per Class A Common Stock. Upon the consummation of the transaction, 70% of VSL's Class B Shares shall be automatically converted into one share of Class A Common Stock of FinAccel with an aggregate undiscounted implied transaction value of US$7,208,830 to the Company. The other 30% of the Company's Class B Shares, which have an aggregate undiscounted implied transaction value of US$3,089,500, have a vesting period of five years from the consummation of the transaction but are fully vested if the volume weighted average price ("VWAP") reaches defined levels for 10 out of 20 trading days at any time during this period. Of the remaining Class B Shares, 50% will vest at a VWAP of US$12.50 price per Class A Common Stock and the remaining 50% will vest at a VWAP of US$15.00 price per Class A Common Stock.

The Company will initially value the Class A Common Stock at the closing trade price and take a 40% discount to the value to take into account deal closing risk and illiquidity relating to the lock up on the Class A Common Stock. The discounted valuation above results in a value of US$6,178,998 representing a 1.5% increase to the 30 June 2021 NAV (before fees).

Similarly, each private placement warrant shall be converted into a warrant to purchase one share of Class A Common Stock of FinAccel. The Company holds 833,529 warrants, which maintain a US$11.50 per share strike price, provide for cashless exercise and expire five years after closing of the transaction. The private placement warrants will be valued utilising an option pricing model/Black Sholes model. The initial valuation of the private placement warrants results in a value of US$1,711,547 representing a 0.1% increase to the 30 June 2021 NAV (before fees).

The Company's Class A Common Stock shall be subject to a two-year post-closing lockup unless otherwise accelerated based on average trading performance measured on a rolling consecutive thirty-day period commencing one-year post-closing. The transaction is expected to close in the fourth quarter of 2021 or the first quarter of 2022 and remains subject to VPCB shareholder approval amongst other closing conditions. 

The information contained in this announcement is inside information and is price sensitive.

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About VPC Specialty Lending Investments PLC

VPC Specialty Lending Investments PLC (Company No. 9385218) is a UK listed investment trust focused on asset-backed lending to emerging and established businesses with the goal of building long-term, sustainable income generation. The Company identifies investment opportunities across various industries and geographies to offer shareholders access to a diversified portfolio of opportunistic credit investments originated by non-bank lenders with a focus on the rapidly developing technology-enabled lending sector.

Further information on VPC Specialty Lending Investments PLC is available at: http://vpcspecialtylending.com.

LEI: 549300UPEXC5DQB81P34