Flat Rock Opportunity Fund Increases Monthly Distribution
Flat Rock Opportunity Fund, a closed-end interval fund that invests in collateralized loan obligations, has increased its monthly distribution to $0.175 per share.
Flat Rock Opportunity Fund, a closed-end interval fund that invests in collateralized loan obligations, has increased its monthly distribution to $0.175 per share.
Based on the fund’s closing price of $19.70 as of December 31st, the distribution increases the effective annual distribution rate by 4.8 percent, from 10.2 percent to 10.7 percent.
The company noted that the increase follows more than two years of distributions at a rate of $0.167 per share since the fund’s inception in 2018.
“Flat Rock Opportunity Fund’s success has been driven through our adherence to our key investment pillars; most notably a capacity constrained approach that allows the fund to be highly selective, as well as our capability to invest in middle market CLOs and leverage a flexible investment mandate,” said Robert Grunewald, founder and chief executive officer of the fund’s advisor, Flat Rock Global LLC.
Flat Rock Opportunity Fund (Ticker: FROPX) invests primarily in the equity and, to a lesser extent, in the junior debt tranches of CLOs, which provide exposure to senior secured loans on a leveraged basis. The fund had $87.8 million of assets at fair market value on September 30, 2020. Flat Rock funds are available to registered investment advisors, family offices, and institutional investors.
