We investigate the performance of a micro gap vacuum thermionic energy converter considering the loss mechanisms due to the space charge effect and interelectrode radiative heat transfer. The dependencies of the space charge effect and near-field radiative heat exchange on the interelectrode distance are derived based on established theories. The electrode temperatures are determined by solving the steady-state energy balance equations in a numerical, iterative process and considering a constant energy flux input to the emitter. The resultant behaviour of the different mechanisms of energy flow from the electrodes is studied for a wide range of interelectrode distances, which provides new insights into the device operation.The maximum efficiency of the converter is obtained by optimizing the operating voltage and interelectrode distance. Considering the interplay between space charge and near-field radiative heat transfer, an optimal range is determined for the interelectrode distance. The optimal value of the distance and the lower limit of this range are found to be significantly higher than previously reported, where constant electrode temperatures had been assumed.