Flat Rock Enhanced Income Fund (FRBBX)

Exposure to Private Credit while seeking to Protect Against Loss

FRBBX Highlights

The Flat Rock Enhanced Income Fund (FRBBX) invests primarily in the junior debt tranches of Collateralized Loan Obligations (“CLOs”) with a particular emphasis on CLO debt tranches initially rated ‘BB’ by National Recognized Statistical Rating Organizations.

NAV:

21.57

Daily Return:

+0.00

(+0.00%)

0 %
Yield1
0 +
Unique First Lien Loans in our CLOs2
$ 0 B
CLOs Invested by the Management team
1) Data as of 12/31/2023. Yield is defined as next monthly declared distribution * 12 divided by the share price. These distributions do not include a return of principal.
2) As of 12/31/2023

Fund Performance

FUND PERFORMANCE (NET) FUND PERF. (NET) YEAR TO DATEYTD
(THROUGHTHRU 12/31/2023)
ANNUALIZED RETURN
FROM INCEPTION
ANN. RET. FROM INCEP. 01/03/2023
STANDARD DEVIATION
FROM INCEPTION
STD FROM INCEP. 01/03/2023
Flat Rock Enhanced Income FundFRBBX 14.40% 14.53% 1.62%
Bloomberg US High Yield IndexBlmbrg. US HY Index 12.87% 12.98% 5.02%
S&P BDC IndexS&P BDC Index 26.30% 26.54% 14.89%

– Fund Perf. (Net): Fund Performance (Net)
– YTD: Year to date
– Ann. Ret. From Incep.: Annual Return from Inception
– STD From Incep.: Standard Deviation from Inception
– Blmbrg. US HY Index: Bloomberg US High Yield Index
– Mstar. Lev. Loan Index: Morningstar Leveraged Loan Index

The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free (833) 415-1088.

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Disclosures

According to J.P. Morgan Research, the leveraged loan default rate over the last 24 years was 2.9%. The default rate for CLO debt securities, initially rated BB, was 0.3% from 2000 to 2020, according to S&P Global Research. Glossary: Correlation is a mutual connection or relationship between two or more variables. Standard Deviation is measure that provides the dispersion around a mean. The Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. The S&P / LSTA Loan Index is a market value weighted index designed to measure the performance of the U.S. leveraged loan market. Risk: The Fund is suitable for investors who can bear the risks associated with the Fund’s limited liquidity and should be viewed as a long-term investment. Our shares have no history of public trading, nor is it intended that our shares will be listed on a national securities exchange at this time, if ever. No secondary market is expected to develop for our shares; liquidity for our shares will be provided only through quarterly repurchase offers for no less than 5% of and no more than 25% of our shares at net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these limited restrictions, an investor should consider an investment in the Fund to be of limited liquidity. Investing in our shares may be speculative and involves a high degree of risk, including the risks associated with leverage. Investing in the Fund involves risks, including the risk that shareholder may lose part of or all of their investment. We intend to invest primarily in the equity and, to a lesser extent, in the junior debt tranches of CLOs that own a pool of senior secured loans. Our investments in the equity and junior debt tranches of CLOs are exposed to leveraged credit risk. Investments in the lowest tranches bear the highest level of risk. We may pay distributions in significant part from sources that may not be available in the future and that are unrelated to our performance, such as a returns of capital or borrowing. The amount of distributions that we may pay, if any, is uncertain.

Investors should consider the investment objectives, risks, and charges and expenses of the Flat Rock Enhanced Income Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained at flatrockglobal.com. Investing involves risk, including loss of principal.

The Fund is suitable for investors who can bear the risks associated with the Fund’s limited liquidity and should be viewed as a long-term investment. Our shares have no history of public trading, nor is it intended that our shares will be listed on a national securities exchange at this time, if ever. No secondary market is expected to develop for our shares; liquidity for our shares will be provided only through quarterly repurchase offers for no less than 5% of and no more than 25% of our shares at net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these limited restrictions, an investor should consider an investment in the Fund to be of limited liquidity. Investing in our shares may be speculative and involves a high degree of risk, including the risks associated with leverage. Investing in the Fund involves risks, including the risk that shareholder may lose part of or all of their investment. We intend to invest primarily in the junior debt tranches of CLOs. Our investments in the junior debt tranches of CLOs are exposed to leveraged credit risk. Investments in the lowest tranches bear the highest level of risk. We may pay distributions in significant part from sources that may not be available in the future and that are unrelated to our performance, such as a returns of capital or borrowing. The amount of distributions that we may pay, if any, is uncertain. Flat Rock Enhanced Income Fund is distributed by Ultimus Fund Distributors, Inc.