Overview: |
| Title: Understanding Private Credit |
| Date: Tuesday, October 15, 2024 |
| Time: 1:00 PM Eastern Daylight Time |
| Duration: 1 hour |
Register Now: |
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Summary: |
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Now On Demand
Accepted for 1 CFP® / IWI / CFA CE Credit |
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Speakers: |
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Michael Grier Eliasek is President and Chief Operating Officer of Prospect Capital Corporation and a Managing Director of Prospect Capital Management and Prospect Administration. He also serves on the Board of Directors for Prospect Capital Corporation. At Prospect Capital, Grier is responsible for leading Prospect Capital’s team of professionals in the origination and assessment of investments. Prior to his position at Prospect Capital Corporation, he served as a Managing Director with Prospect Street Ventures, an investment management firm which, together with its predecessors, has invested in excess of $1.5 billion in senior loan, mezzanine, bridge loan, private equity, and venture capital structures through publicly traded closed-end funds and private limited partnerships. Prior to joining Prospect, Grier served as a consultant with Bain & Company, a global strategy consulting firm, where he managed engagements for companies in several different industries. At Bain, he analyzed new lines of businesses, developed market strategies, revamped sales organizations, and improved operational performance. Grier received his BS with Highest Distinction from the University of Virginia, where he was a Jefferson Scholar and a Rodman Scholar. He received his MBA from Harvard Business School. |
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Jonathan Tepper is a Managing Director of our Adviser with more than 28 years of finance industry experience. Mr. Tepper is responsible for management of the Prospect Floating Rate and Alternative Income Fund, Inc., which includes raising capital, interfacing with investors, RIAs, and broker/dealers, reviewing documentation, and portfolio review. Mr. Tepper previously served as a Managing Director with Atalaya Capital Management, where he was responsible for portfolio management of the Telos CLO business. Mr. Tepper was a founder of the Telos CLO business, which was originally formed at Tricadia Capital Management, where he was responsible for credit underwriting, trading, and portfolio management. Prior to joining Tricadia in 2006, Mr. Tepper was a Vice President at Emporia Capital Management, the CLO arm of Cohen Brothers & Company. Prior to Cohen Brothers, Mr. Tepper was at PB Capital where he focused on underwriting and originating sponsored transactions. From 1998-2002 he was in BNP Paribas’ Merchant Banking Group where he underwrote middle market leveraged buyouts. Mr. Tepper began his career in the Valuation Services Group at Arthur Andersen. Mr. Tepper received a BA from the University of Michigan and his MBA from Columbia Business School, where he graduated with Beta Gamma Sigma honors. |
This is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges and expense of Prospect Floating Rate and Alternative Income Fund, Inc. (“the Fund” or “PFLOAT”, “our”, “we” or “us”). This and other important information about the Fund is contained in the prospectus (as may be modified, supplemented or amended from time to time, the “prospectus”) and in the Fund’s SEC filings. Please read the prospectus, including the “Risk Factors” section, carefully before investing.
This presentation is for the confidential use of only those persons to whom it is transmitted. Do not copy. Do not distribute. By acceptance hereof, each recipient agrees not to transmit, reproduce or make available to anyone, in whole or in part, this presentation, any supplement hereto or any information contained herein or therein without the prior written consent of the Fund, or to use it for any purpose other than evaluating a possible investment. Each person who has received a copy of this presentation is deemed to have agreed (i) not to disclose any information contained in this presentation or any supplement hereto and (ii) to be responsible for any disclosure of this presentation, any supplement hereto or the information contained herein or therein, by such person or any of its employees, agents or representatives.
Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performances are forward-looking statements within the meaning of federal securities laws. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies, portfolio management, the performance of our investments, and other items. Our actual results or actions may differ materially from those expressed in any forward-looking statements made by us. Forward-looking statements involve a number of risks of uncertainties including, but not limited to, the risks described under headings such as “Risk Factors” in the prospectus and in our SEC filings. All forward-looking statements are qualified by those risk factors. All statements made by us in this presentation are further qualified in all respects by the information disclosed in the prospectus and in our SEC filings. We disclaim any obligation to update our forward-looking statements unless required by law.
This presentation is not legal, tax, accounting or investment advice or a recommendation. You should consult your own counsel, tax and financial advisors. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, the Fund makes no representation or warranty in respect of this information.
Past performance is not a guarantee of future results. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of its investment adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. Investors may pay certain offering expenses and a sales load, as described in the prospectus. An investor will need to receive a total return at least in excess of these expenses to receive an actual return on its investment.
In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of the Fund, or information about the market, as indicative of the Fund’s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Fund. An investment in the Fund is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor’s return. An investor should carefully consider the fees and expenses and other information found in the prospectus, including the “Risk Factors” section, before making an investment decision. These risks include:
-Our use of borrowed funds to make investments will expose us to risks typically associated with leverage.
-Rising interest rates may adversely affect the value of our portfolio investments, which could have an adverse effect on our business, financial condition and results of operations.
-The phase-out and cessation of LIBOR and the use of SOFR as a replacement rate may adversely affect the value of the LIBORindexed, floating-rate debt securities in our portfolio.
-We may suffer credit losses.
-Economic recessions or downturns could impair a company in which we invest and harm our operating results.
-Inflation can adversely impact our cost of capital and the value of our portfolio investments.
-Our financial results may be affected adversely if one or more of our significant equity or junior debt investments in a Collateralized Loan Obligation (“CLO”) vehicle defaults on our payment obligations or fails to perform as we expect.
-Our CLO investments will be exposed to leveraged credit risks.
-There is the potential for interruption and deferral of cash flow from CLO investments.
-The payment of underlying portfolio manager fees and other charges on CLO investments could adversely impact our return on our CLO investments.
-We have limited control of the administration and amendment of any CLO in which we invest.
-We will have no influence on management of underlying investments managed by non-affiliated third-party CLO collateral managers.
-Our portfolio companies may be highly leveraged.
An investor should not expect to be able to sell its shares of our common stock regardless of how we perform and should consider that it may not have access to the money it invests in us for an indefinite period of time. An investment in shares of our common stock is not suitable for an investor if the investor needs access to the money it invests.
We intend to continuously issue shares of our common stock and, as a result, your ownership in us is subject to dilution.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED ANY OFFERING OF PFLOAT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. YOU SHOULD READ THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. AN INVESTMENT IN THE FUND SHOULD BE MADE ONLY AFTER CAREFUL REVIEW OF THE PROSPECTUS. ALL INFORMATION CONTAINED IN THIS MATERIAL IS QUALIFIED IN ITS ENTIRETY BY THE TERMS OF THE PROSPECTUS. THE ACHIEVEMENT OF ANY GOALS IS NOT GUARANTEED.
The Company has filed a registration statement, including the prospectus, with the SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Preferred Capital Securities, LLC (member FINRA/SIPC), the dealer manager for the common stock. Preferred Capital Securities’ contact information is: 3290 Northside Parkway NW, Suite 800 | Atlanta, GA 30327 Sales Desk 855.330.6594 | Investor Services 855.320.1414.
Nothing in this presentation should be construed as a recommendation to invest in any security or as legal, accounting, tax, regulatory, financial or other advice. Each prospective investor should make its own independent investigation and consult with its own advisors for independent advice as to the legal, accounting, tax, regulatory, financial and other aspects of any investment, especially with respect to the particular factors that are unique to such investor. In all cases, interested parties should conduct their own investigations and analyses of Prospect and the data set forth in this presentation. Tax rules and regulations are complex and their application can be unique to any specific beneficial owner. Prospect does not provide legal, tax or accounting advice and does not accept responsibility for any loss incurred as a result of reliance on the information contained in this presentation.
This presentation does not purport to be all-inclusive or otherwise contain all of the information that a prospective investor may need or desire concerning an investment.
This presentation includes information obtained from third-party sources, which are believed to be reliable, but such information has not been verified by PFLOAT and, accordingly, no assurance can be provided concerning its accuracy. In no event will PFLOAT be deemed to make any representations to any prospective investor concerning any such information. Prospect does not undertake any duty or obligation to update or revise any of the information contained herein.
All investments involve risk, including the risk of loss of all or a portion of the invested amount. Any investment is subject to a variety of risks and there can be no assurance that any investment will meet its investment objectives, if any, or that investors will not incur losses.
Recipients should not view the past performance of PFLOAT, Prospect or any affiliate thereof as being indicative of future results. Actual results will vary and the variations may be material, such that actual investment returns may be lower or higher than those projected.
The achievement of investment returns is dependent on a multitude of factors, many of which are beyond the control of Prospect. Any portfolio characteristics shown herein, including position sizes and sector allocations, among others, are generally averages, are for illustrative purposes only and do not reflect the investments of an actual portfolio, unless otherwise noted herein. The investment guidelines of an actual portfolio may permit or restrict investments that are materially different in size, nature and risk from those shown.
Confidentiality: This presentation is for the confidential use of only those persons to whom it is transmitted. By acceptance hereof, each recipient agrees not to transmit, reproduce or make available to anyone, in whole or in part, this presentation or any information contained herein or use it for any purpose other than evaluating a possible investment, without the prior written consent of Prospect. Each recipient of this presentation shall be responsible for any disclosure of this presentation, any supplement hereto or any of the information contained herein or therein, by such recipient of any of its employees, agents or representatives.
This presentation is for the confidential use of only those persons to whom it is transmitted. Do not copy. Do not distribute. By acceptance hereof, each recipient agrees not to transmit, reproduce or make available to anyone, in whole or in part, this presentation, any supplement hereto or any information contained herein or therein without the prior written consent of the Fund, or to use it for any purpose other than evaluating a possible investment. Each person who has received a copy of this presentation is deemed to have agreed (i) not to disclose any information contained in this presentation or any supplement hereto and (ii) to be responsible for any disclosure of this presentation, any supplement hereto or the information contained herein or therein, by such person or any of its employees, agents or representatives.
Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performances are forward-looking statements within the meaning of federal securities laws. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies, portfolio management, the performance of our investments, and other items. Our actual results or actions may differ materially from those expressed in any forward-looking statements made by us. Forward-looking statements involve a number of risks of uncertainties including, but not limited to, the risks described under headings such as “Risk Factors” in the prospectus and in our SEC filings. All forward-looking statements are qualified by those risk factors. All statements made by us in this presentation are further qualified in all respects by the information disclosed in the prospectus and in our SEC filings. We disclaim any obligation to update our forward-looking statements unless required by law.
This presentation is not legal, tax, accounting or investment advice or a recommendation. You should consult your own counsel, tax and financial advisors. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, the Fund makes no representation or warranty in respect of this information.
Past performance is not a guarantee of future results. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of its investment adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. Investors may pay certain offering expenses and a sales load, as described in the prospectus. An investor will need to receive a total return at least in excess of these expenses to receive an actual return on its investment.
In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of the Fund, or information about the market, as indicative of the Fund’s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Fund. An investment in the Fund is speculative and involves a high degree of risk, including the risk of a substantial loss of investment, as well as substantial fees and costs, all of which can impact an investor’s return. An investor should carefully consider the fees and expenses and other information found in the prospectus, including the “Risk Factors” section, before making an investment decision. These risks include:
-Our use of borrowed funds to make investments will expose us to risks typically associated with leverage.
-Rising interest rates may adversely affect the value of our portfolio investments, which could have an adverse effect on our business, financial condition and results of operations.
-The phase-out and cessation of LIBOR and the use of SOFR as a replacement rate may adversely affect the value of the LIBORindexed, floating-rate debt securities in our portfolio.
-We may suffer credit losses.
-Economic recessions or downturns could impair a company in which we invest and harm our operating results.
-Inflation can adversely impact our cost of capital and the value of our portfolio investments.
-Our financial results may be affected adversely if one or more of our significant equity or junior debt investments in a Collateralized Loan Obligation (“CLO”) vehicle defaults on our payment obligations or fails to perform as we expect.
-Our CLO investments will be exposed to leveraged credit risks.
-There is the potential for interruption and deferral of cash flow from CLO investments.
-The payment of underlying portfolio manager fees and other charges on CLO investments could adversely impact our return on our CLO investments.
-We have limited control of the administration and amendment of any CLO in which we invest.
-We will have no influence on management of underlying investments managed by non-affiliated third-party CLO collateral managers.
-Our portfolio companies may be highly leveraged.
An investor should not expect to be able to sell its shares of our common stock regardless of how we perform and should consider that it may not have access to the money it invests in us for an indefinite period of time. An investment in shares of our common stock is not suitable for an investor if the investor needs access to the money it invests.
We intend to continuously issue shares of our common stock and, as a result, your ownership in us is subject to dilution.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED ANY OFFERING OF PFLOAT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. YOU SHOULD READ THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. AN INVESTMENT IN THE FUND SHOULD BE MADE ONLY AFTER CAREFUL REVIEW OF THE PROSPECTUS. ALL INFORMATION CONTAINED IN THIS MATERIAL IS QUALIFIED IN ITS ENTIRETY BY THE TERMS OF THE PROSPECTUS. THE ACHIEVEMENT OF ANY GOALS IS NOT GUARANTEED.
The Company has filed a registration statement, including the prospectus, with the SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Preferred Capital Securities, LLC (member FINRA/SIPC), the dealer manager for the common stock. Preferred Capital Securities’ contact information is: 3290 Northside Parkway NW, Suite 800 | Atlanta, GA 30327 Sales Desk 855.330.6594 | Investor Services 855.320.1414.
Nothing in this presentation should be construed as a recommendation to invest in any security or as legal, accounting, tax, regulatory, financial or other advice. Each prospective investor should make its own independent investigation and consult with its own advisors for independent advice as to the legal, accounting, tax, regulatory, financial and other aspects of any investment, especially with respect to the particular factors that are unique to such investor. In all cases, interested parties should conduct their own investigations and analyses of Prospect and the data set forth in this presentation. Tax rules and regulations are complex and their application can be unique to any specific beneficial owner. Prospect does not provide legal, tax or accounting advice and does not accept responsibility for any loss incurred as a result of reliance on the information contained in this presentation.
This presentation does not purport to be all-inclusive or otherwise contain all of the information that a prospective investor may need or desire concerning an investment.
This presentation includes information obtained from third-party sources, which are believed to be reliable, but such information has not been verified by PFLOAT and, accordingly, no assurance can be provided concerning its accuracy. In no event will PFLOAT be deemed to make any representations to any prospective investor concerning any such information. Prospect does not undertake any duty or obligation to update or revise any of the information contained herein.
All investments involve risk, including the risk of loss of all or a portion of the invested amount. Any investment is subject to a variety of risks and there can be no assurance that any investment will meet its investment objectives, if any, or that investors will not incur losses.
Recipients should not view the past performance of PFLOAT, Prospect or any affiliate thereof as being indicative of future results. Actual results will vary and the variations may be material, such that actual investment returns may be lower or higher than those projected.
The achievement of investment returns is dependent on a multitude of factors, many of which are beyond the control of Prospect. Any portfolio characteristics shown herein, including position sizes and sector allocations, among others, are generally averages, are for illustrative purposes only and do not reflect the investments of an actual portfolio, unless otherwise noted herein. The investment guidelines of an actual portfolio may permit or restrict investments that are materially different in size, nature and risk from those shown.
Confidentiality: This presentation is for the confidential use of only those persons to whom it is transmitted. By acceptance hereof, each recipient agrees not to transmit, reproduce or make available to anyone, in whole or in part, this presentation or any information contained herein or use it for any purpose other than evaluating a possible investment, without the prior written consent of Prospect. Each recipient of this presentation shall be responsible for any disclosure of this presentation, any supplement hereto or any of the information contained herein or therein, by such recipient of any of its employees, agents or representatives.