Prospect Floating Rate and Alternative Income Fund Adds Quarterly Bonus Distribution, Lifting Rate to 14.54%
By Staff
Prospect Floating Rate and Alternative Income Fund has declared its first quarterly cash bonus distribution, layering an additional payout on top of its existing base distributions to bring the combined annualized rate to 14.54% on net asset value.
The bonus distribution of $0.0431 per share carries a record date of March 27, 2026, and a payment date of April 3, 2026. Combined with previously declared monthly base distributions, the total annualized cash distribution is $0.5524 per share, based on the fund’s Dec. 31, 2025 NAV of $3.80.
The base distributions — declared Feb. 26 at a 10.00% annualized rate — cover February, March and April 2026, with the same March 27 record date and April 3 payment date applying to both the base and bonus components for the March period.
The fund noted that its February, March and April 2026 distributions are expected to reflect a return of income, with no portion anticipated to constitute a return of capital.
Prospect Floating Rate and Alternative Income Fund is a non-traded, externally managed closed-end management investment company that has elected to be regulated as a business development company, or BDC. The fund invests primarily in floating rate loans of privately-owned U.S. middle market companies. Investments are sourced by Prospect Capital Management L.P., the fund’s investment adviser.
The 14.54% annualized rate partly reflects a significant decline in the fund’s NAV. Per the fund’s June 30, 2025 annual report, NAV stood at $4.50 per share — already down from $4.75 at March 31, 2024. The Dec. 31, 2025 NAV of $3.80 represents a further drop of 15.6% in the second half of 2025 alone, and a cumulative decline of roughly 20% from the March 2024 level. A lower NAV base mechanically produces a higher percentage distribution rate even when the dollar amount per share is comparable to prior periods.
AltsWire previously reported the fund’s November and December 2024 distributions, which carried an 8.5% annualized rate based on a then-current NAV of $4.65.
Prospect Capital Management, headquartered in New York, manages $7.2 billion in assets as of Dec. 31, 2025, and also serves as investment adviser to Prospect Capital Corporation (Nasdaq: PSEC).
Visit the AltsWire directory page for Prospect Capital Management.
