Flat Rock Global LLC, an alternative asset management firm, is planning to launch a $100 million interval fund named Flat Rock Opportunity Fund. The fund plans to invest primarily in the equity and, to a lesser extent, in the junior debt tranches of collateralized loan obligations that own a pool of senior secured loans.
Shares are expected to be initially priced at $20.00 each, and the minimum investment will likely be $20,000. ALPS Distributors Inc. will serve as the fund’s principal underwriter.
As compensation for its management services, the fund will pay its adviser Flat Rock Global an annual 1.375 percent management fee.
There is no upfront sales load associated with the purchase of the shares, however, the adviser or its affiliates may pay additional compensation to financial intermediaries in connection with the sale and servicing of the fund’s shares. Flat Rock Global will pay all organization and offering expenses, which are expected to equal $500,000.
The fund is currently offering shares to certain affiliates through a private placement offering.
Flat Rock Global focuses on asset classes deemphasized and underserved by the banking sector. Last year, the company launched Flat Rock Capital Corp., a business development company focused on investing in first lien, senior secured debt of middle market companies. Flat Rock Global had approximately $30 million of assets under management as of December 31, 2017, which represents the total assets of Flat Rock Capital Corp.