Flat Rock Enhanced Income Fund
FRBBX
NASDAQ- -
USD
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- -
Capital Structure
FRC
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in mil. unless spec.Working Capital
FRC
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in mil. unless spec.Growth Rates
FRC
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.Quarterly Dividends Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- United States of America
- IPO Date
- Apr 17, 2023
- CIK
- 0001925779
- Website
- flatrockglobal.com
- Similar Companies
- Business
- Flat Rock Enhanced Income Fund (FRBBX) is a closed-end interval fund that seeks to generate current income and, secondarily, long-term capital appreciation by investing primarily in junior debt tranches of collateralized loan obligations (CLOs), with particular emphasis on CLO debt tranches initially rated 'BB' by National Recognized Statistical Rating Organizations; to a lesser extent, the Fund may invest in other CLO debt securities, CLO equity, or other debt securities consistent with its allocation policy. The Fund provides exposure to diversified pools of over 1,900 unique first-lien senior secured loans made to below-investment-grade or unrated companies, primarily middle-market borrowers, with protection from initial losses absorbed by CLO equity investors. It operates with quarterly repurchase offers for no less than 5% and no more than 25% of outstanding shares at net asset value, daily published NAV under ticker FRBBX, and monthly distributions calculated at an annualized rate of approximately 11.56% as of September 30, 2024 (adjusted to 10.68% year-end rate following a reduction from 21.0 cents to 19.3 cents per share effective January 2025 due to declining SOFR and spread compression). The Fund, a Delaware statutory trust formed on April 19, 2022, and commencing operations on January 3, 2023, is headquartered at 680 S. Cache Street, Suite 100, Jackson, Wyoming 83001, and managed by Flat Rock Global, LLC, a specialist asset manager focused on capacity-constrained, income-oriented private credit strategies. As of December 31, 2024, assets under management reached $426.4 million, with a portfolio of 48 middle-market CLO BB notes from diversified managers including AllianceBernstein, Monroe Capital, First Eagle, Fortress, and Brightwood; top holdings include Monroe Capital MML CLO Ltd. Series 2024-1A (5.53%), Maranon Loan Funding Ltd. Series 2021-3A (4.63%), and Lake Shore MM CLO V LLC Series 2022-1A (4.36%). The Fund targets long-term investors suitable for limited liquidity, employing modest leverage via a $5.1 million line of credit and $10 million mandatorily redeemable preferred stock. Recent developments include substantial growth in 2024, with net assets increasing $249.5 million to $426.4 million through $260.8 million in share sales and portfolio expansion to 48 CLO positions via additions from six new middle-market managers; the Fund delivered a net total return of 13.76% for the year and 14.14% annualized since inception, outperforming the Bloomberg US Corporate High Yield Bond Index (8.19%) amid market normalization of CLO BB pricing to par. In Q4 2023, distribution rates were increased for FRBBX alongside the Flat Rock Core Income Fund (CORFX); a director purchased 1,140 shares on December 9, 2025, at $21.93 per share; and as of September 30, 2025, AUM stood at $389 million with a 1-year return of 14.36%. The Fund maintains low portfolio turnover (27% in 2024) and historical CLO BB default rates of approximately 25 basis points over 30 years.