Blackstone Interval Fund Distributes Final Assets in Liquidation Process

The Blackstone Floating Rate Enhanced Income Fund has completed its liquidation process, issuing a final distribution to shareholders and fully returning all capital.

August 19, 2024

The Blackstone Floating Rate Enhanced Income Fund, now in the final stages of its liquidation process, has issued its second and final distribution to shareholders of record as of June 10, 2024. This follows an initial distribution made on June 13, which accounted for 96.5% of the fund’s net assets.

The final distribution covers the remaining assets, including any accrued but unpaid dividends. With this payment, the fund has fully returned capital to its shareholders, completing all distributions as outlined in its liquidation plan.

The fund's board approved the liquidation in May 2024, with expectations to return at least 90% of capital to shareholders. The fund has incurred $403,791 in liquidation-related costs. Launched in January 2018, the fund aimed to provide attractive income with low interest rate sensitivity and had a net asset value of $22.15 per share and $294 million in assets as of March 31, 2024.

The decision to liquidate was driven by the fund’s consistent performance in line with its benchmark and its ability to meet shareholders' liquidity needs, though the adviser noted that the fund required greater scale to remain cost-effective and meet long-term objectives. The fund’s prospectus was updated to reflect the rejection of new share purchases and the adoption of a liquidation plan, including debt payments, asset distribution, and winding down operations.