Prospect Floating Rate Fund Declares Monthly Distributions

Distributions will be paid in April and May, based on net asset value as of the end of December 2024.

March 28, 2025

Distribution Timeline and Details

Prospect Floating Rate and Alternative Income Fund has announced its monthly distribution schedule for March and April 2025. The fund’s board approved the move on March 26, locking in a targeted annualized distribution rate of 8.5%, based on the net asset value per share at the end of the prior fiscal quarter.

The distribution is set at $0.02992 per share for both Class A and Class I common stock. Key dates include:

• March 28: Record date for the March distribution


• April 4: Payment date for the March distribution


• April 25: Record date for the April distribution


• May 2: Payment date for the April distribution

As with all of the fund’s distributions, the tax character of these payouts will be finalized at fiscal year-end. Shareholders can expect estimates on taxable income breakdowns each quarter, with final figures reported on Form 1099-DIV.

Tax Considerations and Funding Sources

Because the fund can draw from a range of sources—including net investment income, capital gains, borrowings, or proceeds from asset sales—a portion of any given distribution may reflect a return of capital for tax purposes. Prospect Capital Management may also reimburse certain expenses, though those reimbursements are not guaranteed going forward.

Looking Ahead

Future distributions will depend on board discretion and applicable legal limits, so both timing and payment amounts may change. Still, this announcement underscores the fund’s focus on providing consistent income for its investors.

By outlining specific record dates, payment timelines, and targeted rates, the fund is offering investors a clear roadmap for the next two months. For asset managers and advisors managing income-driven strategies, having this level of transparency is essential for planning and execution in a changing rate environment.