Flat Rock Global, LLC Announces the Launch of a New Interval Fund, the Flat Rock Enhanced Income Fund
JACKSON, Wyo., February 6, 2023 (Newswire.com) - Today, Flat Rock Global, LLC ("Flat Rock Global" or the "Firm") announced the launch of a new interval fund, the Flat Rock Enhanced Income Fund ("the Fund"). The Fund will invest primarily in the junior debt tranches of Collateralized Loan Obligations ("CLOs"), with a particular emphasis on tranches initially rated "BB" by a Nationally Recognized Statistical Rating Organization3, such as S&P Global Ratings. "Investing in CLO BB notes continues Flat Rock Global's emphasis on investing in niche asset classes we believe may generate innovative risk-adjusted returns," said Robert Grunewald, Founder and CEO of Flat Rock Global. "Our goal is to provide investors with diverse exposure to senior secured loans with the additional benefit of CLO equity providing a buffer against losses," he further commented.
Shiloh Bates, the Fund's Chief Investment Officer, further commented, "CLO BB1 notes have had average annual defaults since 1994 of only 32 basis points2, providing investors with a unique format in which to own private credit."
The Fund is the third interval fund managed by Flat Rock Global, which also manages the Flat Rock Opportunity Fund and the Flat Rock Core Income Fund. The Firm had over $550 million in assets under management on Dec. 31, 2022.
The Fund is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as a continuously offered, non-diversified, closed-end management investment company that is operated as an interval fund. The Fund uses the ticker symbol FRBBX. Ultimus Fund Distributors serves as the Fund's principal underwriter.
About Flat Rock Global:
Flat Rock Global is an alternative credit manager investing in areas of the credit markets we believe are less efficient with the dual objective of preservation of capital and generation of current income. The Firm celebrated its 5-year anniversary last year and managed over $550 million of assets as of Dec. 31, 2022. To learn more about the Firm and our funds, please visit www.flatrockglobal.com.
- The Fund will invest primarily in the junior debt tranches of collateralized loan obligations ("CLOs"), with a particular emphasis on CLO debt tranches initially rated 'BB' by a Nationally Recognized Statistical Rating Organization, such as S&P Global Ratings and Moody's Investors Service.
- S&P Global Ratings, August 2021, assumes a five-year average life
- A Nationally Recognized Statistical Rating Organization is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument that is registered and approved by the Securities and Exchange Commission.
Consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. Other information about the Fund may be obtained at www.flatrockglobal.com. This material must be preceded or accompanied by a prospectus. Ultimus Fund Distributors serves as our principal underwriter, within the meaning of the 1940 Act, and will act as the distributor of our shares on a best efforts basis, subject to various conditions.
Source: Flat Rock Global, LLC