TP Flexible Income Fund, (the “Fund”), is a non-traded business development company (BDC) that invests primarily in senior and secured credit of privately-owned U.S. middle-market companies, including1:
1) Senior secured loans are subject to the risk of nonpayment of scheduled interest or principal payment and are typically lower rated and may be illiquid investments.
Additionally, middle market companies are often more volatile and face greater risks than larger, more established companies.
Bank consolidation and increased banking regulations have significantly reduced the amount of commercial loans available to middle-market borrowers. At the same time, U.S. middle-market companies need capital in order to grow and support their daily operations. As a result, we believe that there are and will continue to be significant investment opportunities in senior and secured lending to middle-market companies.
Institutional loan issuance =
$730 billion in 20181
86% reduction in participation in
leveraged loans by commercial banks2
$1.1 trillion in debt capital held by
funds of private equity firms3
Sources: 1) Senior secured loans and second lien secured loans. Source: Thompson Reuters LPC. 2) S&P Global Market Intelligence, Standard & Poor’s Leveraged Commentary & Data as of 3Q 2018. 3) As of September 2018. Source: Preqin Ltd.
The Fund strives to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. By investing in the fund, investors may benefit from:
Income from a wide array of loans
and credit investments
Low volatility and low correlation to
Mitigated credit loss risk from senior
and secured loans
Highly experienced team with expertise
across alternative investments
Prospect Capital Management L.P., an affiliate of the Adviser, is a leading alternative asset manager with deep expertise in the credit markets with a 30-year history of investing in and managing high-yielding debt and equity investments using both private partnerships and public closed-end structures.
President and Chief
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