En Route to Liquidation, Blackstone Interval Fund Pays Final Distribution to Shareholders
Continuing on its path to liquidation, Blackstone Floating Rate Enhanced Income Fund this week paid a second and final distribution to shareholders of record as of the close of business on June 10, 2024. This followed a first distribution on June 13, which constituted 96.5% of the fund’s net assets.
The latest distribution represented the remainder of the fund’s net assets, including any accrued but unpaid daily dividends. The fund reported that with the second distribution, all capital has been returned to shareholders and all distributions pursuant to the fund’s plan of liquidation are complete.
As previously reported by AltsWire, the Blackstone fund board approved the orderly liquidation of the fund in May 2024. At the time, the fund had expected to return at least 90% of capital to shareholders. Also at the time, the fund stated it would bear costs in connection with the liquidation. A recent filing reported these costs to equal $403,791.
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.
The Blackstone fund previously reported that the decision to liquidate was determined to be in the best interest of shareholders, as the fund had performed in line with its benchmark since inception, had delivered what the adviser believes is attractive income to investors consistent with its investment objectives, and had consistently met shareholders’ liquidity needs via its monthly repurchase offers. Also influencing the decision, the adviser believed 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.
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