Prospect Floating Rate and Alternative Income Fund
Middle-Market Credit Solution for Income-Focused Investors
Portfolio Companies
Weighted Average Yield¹
Diverse Industries
Underlying Secured Investments
Floating Rate and Alternative Investments²
Distribution Rate³
Fund Overview
Prospect Floating Rate and Alternative Income Fund, Inc. (the “Fund” or “PFLOAT”), is a non-traded business development company (“BDC”) that invests primarily in the debt of privately-owned U.S. middle-market companies. The Fund seeks to provide income largely from investing in senior and secured floating rate credits, while building a portfolio of investments across a broad range of economic sectors.
Awarded by Capital Finance International ("CFI") in March 2023, based in part on information submitted as of September 30, 2022 and December 31, 2022. Prospect has provided compensation to CFI for the ability to communicate the results of these awards. The awards described above may not be representative of any one investor’s experience with Prospect and should not be viewed as indicative of future performance.
Market Opportunity
There is significant current market opportunity in the U.S. senior and secured loan market.
Growth of Private Credit
Private credit is increasing as a segment of the total addressable sub-investment grade credit market. Private credit consisted 8% of the $0.9 trillion market in 2005 versus 42% of the $5.0 trillion market in 2025.⁴
Uncertain Economic Environment
During the Great Financial Crisis, the total return of middle market direct lending outperformed other selected credit investments. Between 2005-2008, rising rates through market bottom increased 29.0% within private credit versus syndicated loans decreasing (18.8%), high yield decreasing (13.5%), and investment grade corporate bonds increasing 5.4%.⁶
Demand for Financing
Private credit industry research suggests the asset class will grow from $2.3 trillion in 2027 to $5.0 trillion in 2029, suggesting an opportunity for alternative sources to meet the continued demand for financing.⁵
Demand for Credit
The large amount of uninvested capital held by private equity buyout funds, estimated at $2 trillion, continues to drive deal activity and demand for credit.⁷
Track Record
The Fund’s successful track record in the senior and secured loan market employs a proven and repeatable investment process.
Stable Current Income Generation
Inflation and Rising Interest Rate Hedge
Varied Portfolio
Senior Secured Loans
Core Strategies
Investment Strategies
Middle-Market Lending
Providing customized, flexible financing solutions to middle-market companies across the U.S., supporting growth, acquisitions, and long-term stability.
Lower Middle-Market
One-stop financing solutions to U.S.-based lower middle-market companies across a broad range of industries. Our relationship approach ensures our clients receive the flexibility, expertise, and responsive partnership needed to support complex transactions and long-term growth.
Key Funds
Shareholder Resources
Disclosure
1 Weighted average loan coupon assumes the 1-month or 3-month SOFR rate elected by the respective borrower. Excludes Structured Subordinated Notes and Equity and is weighted by principal balance.
2 Based on cost basis, the portfolio is 95% floating rate debt.
3 Declared distribution rate is based on the most recent quarter end net asset value per share and is calculated by annualizing the monthly common share distributions from July 2025 through April 2026. Historical declared distributions: 8.50% per annum declared for November 2024 to April 2025, 5.00% per annum declared for May 2025 to June 2025. Distributions are not guaranteed and may be modified at our discretion. Any future distributions may exceed our earnings, and therefore portions of the distribution may be a return of money that you originally invested and represent a return of capital for tax purposes.
4 Source: Morningstar, as of February 6, 2026. For illustrative purposes only. Represents private equity dry powder in North America only. Dry powder is a term for uncalled capital commitments.
5 Source: Per Morningstar as of February 6, 2026 and Morgan Stanley as of October 3, 2025. Total addressable US subinvestment grade credit market defined as the aggregate of the US high yield bonds, US leveraged loans and North American private credit markets. Leveraged loans refer to broadly syndicated loans. Private Credit includes BDCs.
6 Preqin, as of December 2022.
7 Per Finalis, as of November 20, 2025. For illustrative purposes only. Represents private equity dry powder in North America only. Dry powder is a term for uncalled capital commitments.
8 Source: Assumes 5-year treasury rate of 3.7% (Bloomberg as of December 31, 2025).