MARKETS CHANGE… SO SHOULD YOUR INVESTMENT OPTIONS.

Flexible

Fixed

TP Flexible Income Fund seeks to provide income primarily from senior and secured credit, from a strategy that is flexible up and down the range of credit investment structures, and flexible across the spectrum of U.S. economic sectors.

INVESTMENT OVERVIEW

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:

TARGET INVESTMENTS

SENIOR SECURED FIRST LOANS
SENIOR SECURED SECOND LOANS

Key Characteristics

  • Highest priority in the capital structure
  • Typically secured by borrower’s assets
  • Yield, interest rate, and inflation protection through floating rates and LIBOR floors
  • Subject to re-pricing risk

SECONDARY INVESTMENTS

DIRECTLY ORIGINATED LOANS
SUBORDINATED DEBT
PRIVATE EQUITY
RATED SECURED STRUCTURED NOTES + STRUCTURED SUBORDINATED NOTES

Key Characteristics

  • Directly originated loans may provide higher yields while remaining senior to equity while prepayment premiums may also help support yield
  • Private equity may provide diversifying power as an alternative to the public markets

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.

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RISK FACTORS RELATING TO INVESTING IN THE FUND

MARKET OPPORTUNITY

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.

LARGE MARKET

Institutional loan issuance =
$730 billion in 20181

BANKS OUT, FUNDS IN

86% reduction in participation in
leveraged loans by commercial banks2

STRONG DEMAND

$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.

WHY TP FLEXIBLE INCOME FUND?

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
traditional equities

Mitigated credit loss risk from senior
and secured loans

Highly experienced team with expertise
across alternative investments

LEADERSHIP

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.

Grier Eliasek

President and Chief
Operating Officer,
Prospect Capital
Management

David L. Belzer

Managing Director,
Prospect Capital
Management

John G. Burges

Managing Director,
Prospect Capital
Management

Joseph Roth

Vice President,
Prospect Capital
Management

Investor Relations

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PROSPECT CAPITAL

Adviser to the Fund

10 East 40th Street, 42nd Floor
New York, NY 10016

TRITON PACIFIC SECURITIES, LLC

Dealer Manager

34232 Pacific Coast Highway Suite B
Dana Point, CA 92629
P 949 429 8500
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