Thu, Sep 12, 8:55 PM (99 days ago)
The Prospect Floating Rate and Alternative Income Fund, Inc. (PFLOAT) reported mixed financial results for the fiscal year ending June 30, 2024. The company generated $3,020,157 in investment income, down from $3,290,629 in 2023, primarily due to fewer interest-generating investments. Operating expenses increased to $3,682,527, resulting in a net investment loss of $(214,815). The net asset value (NAV) per share decreased to $4.69, down from $6.10 in the previous year, attributed to net realized and unrealized losses on investments totaling $(2,077,562). PFLOAT's investment strategy focuses on floating rate loans to U.S. middle-market companies, maintaining at least 80% of net assets in such investments. As of June 30, 2024, the portfolio's fair value was $59,455,010, with 94% in senior secured loans. The company also entered a new Senior Secured Revolving Credit Facility, with a balance of $27,800,000 as of June 30, 2024. Looking forward, PFLOAT anticipates challenges from rising interest rates, economic volatility, and geopolitical tensions, which could impact investment performance. The company is also reliant on its adviser for sourcing investments, which poses potential conflicts of interest. The ongoing waiver of advisory fees under an Expense Limitation Agreement until December 31, 2024, may help mitigate operating expenses in the near term.