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Blackstone to Liquidate Interval Fund

The adviser to the Blackstone Floating Rate Enhanced Income Fund has recommended, and the board has approved the orderly liquidation of the fund. As part of the orderly liquidation of the fund and in an effort to ensure the timely return of capital to shareholders, the fund expects to return at least 90% of shareholder capital within the next four to six weeks across one or more special liquidating dividends.

The fund expects the first special liquidating dividend to be paid on or about June 13, 2024. The special liquidating dividends will include a return of capital to shareholders, although not for tax purposes.

The interval fund, which commenced in January 2018 and reported a net asset value per share of $22.15 and $294 million in managed assets as of March 31, 2024, was created with the strategic objective to provide attractive current income with low sensitivity to rising interest rates.

This recent decision toward liquidation was determined to be in the best interest of shareholders, as the fund has performed in line with its benchmark since inception, has delivered what the adviser believes is attractive income to investors consistent with its investment objectives, and has consistently met shareholders’ liquidity needs via its monthly repurchase offers. However, the adviser believes that the fund would need greater scale in order to continue to successfully meet its performance and investment objectives and be cost-effective for shareholders over time.

The fund’s prospectus was amended to incorporate information on rejecting any new orders to purchase the fund’s shares; and adopting a plan of liquidation allowing the fund to orderly liquidate, pay debts, distribute remaining assets through special liquidating dividends, and otherwise wind down the fund’s affairs, departing from its stated investment objectives and policies as the fund liquidates its holdings.

The fund will bear costs in connection with the liquidation; terminate the dividend reinvestment plan, daily declaration, and monthly distribution of dividends; waive the adviser advisory fee; and continue to conduct monthly repurchase offers until there are no remaining outstanding shares to be repurchased.

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