Prospect Enhanced Yield Fund, a Debt-Focused Structured Credit Interval Fund, Announces 10.6% Net Annualized 3-Month Total Return and 9.0% Cash Dividend Yield (on Net Asset Value) on Fully Deployed Anchor Capital
NEW YORK, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Prospect Enhanced Yield Fund (the "Fund", CUSIP "PAYIX"), a debt-focused structured credit interval fund with daily net asset value and quarterly mandatory liquidity, has announced recent performance results.
For the three month period ended January 31, 2026, since fully deploying the Fund's anchor capital, the Fund has delivered an annualized total gross return of 10.6% (total net return of 10.6%i) based on net asset value, reflecting strong performance on an absolute basis and relative to a range of comparable exchange-traded funds ("ETFs") and relevant market indices over the same period.
During the same period, the Fund produced 147bps and 434bps higher annualized returns than two leading ETFs with comparable targeted asset classes and investment objectives.
During the same period, the Fund produced 406bps higher net annualized returns than the benchmark ICE BofA BB US High Yield Index.
During the same period, the Fund produced 782bps higher net annualized returns than the benchmark Morningstar LSTA US Leveraged Loan Index.
The Fund also recently announced cash dividends to shareholders for January, February, and March 2026, resulting in an annualized cash dividend yield of 9.0% based on January 31, 2026 net asset value of $25.25 per share.
| Annualized Total Returns (as of 01/31/2026) | ||||||
| Inception Date | 3-Mo. | 1-Yr | 3-Yr | 5-Yr | Since Inception ii | |
| Prospect Enhanced Yield Fund | ||||||
| Class I (without sales charge)i | 8/6/2025 | 10.58% | -- | -- | -- | 8.56% |
| Eldridge BBB-B CLO ETFii | 9.11% | 6.07% | 10.98% | -- | 7.25% | |
| Janus Henderson B-BBB CLO ETFiii | 6.24% | 4.27% | 9.32% | -- | 5.68% | |
| ICE BofA BB US High Yield Indexiv | 6.52% | 8.08% | 7.84% | 3.91% | 7.93% | |
| Morningstar LSTA US Leveraged Loan Indexv | 2.76% | 4.85% | 8.28% | 6.10% | 3.67% | |
Past performance is not indicative of future performance.
The Fund reported $29M in total assets as of September 30, 2025 and now through the anchor capital ramp-up as of October 31, 2025 has been fully deployed across 30 BB-rated tranches of broadly syndicated and middle-market Collateralized Loan Obligations ("CLOs") since fund inception in August 2025. The Fund remains focused on its investment objective to generate income and long-term appreciation by investing in non-mortgage structured credit investments.
The Prospect Enhanced Yield Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC. Ultimus Fund Distributors LLC is not associated with Prospect Capital Management L.P.
About Prospect Enhanced Yield Fund
Prospect Enhanced Yield Fund is a closed-end fund that operates as an interval fund and was created to acquire and grow an investment portfolio primarily consisting of non-mortgage related structured credit instruments, including: asset-backed securities, collateralized loan obligations and other securitized investments representing interests in cashflows from various assets, such as loans, leases, and warehouse facilities. The Fund may invest in structured credit instruments that are fixed rate or floating or variable rate, and of any credit quality, duration, or maturity. The Fund is managed by Prospect Enhanced Yield Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P. For more information, visit www.ProspectEnhanced.com.
About Prospect Capital Management L.P.
Prospect Capital Management L.P. ("Prospect"), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $7.3 billion of assets under management as of September 30, 2025. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ:PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
Additional Information
Past performance is not indicative of future performance.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained at our Toll-Free number 833-404-2747 or at ProspectEnhanced.com.
Forward Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Prospect Enhanced Yield Fund. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Prospect Enhanced Yield Fund and that Prospect Enhanced Yield Fund may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Prospect Enhanced Yield Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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i Total returns calculated based on Class I share price, which is equivalent to net asset value per share. Adviser has entered into an Expense Limitation Agreement pursuant to which it will reimburse the Fund, to limit Operating Expenses to an Annual Limit of 2.00% of Net Assets until December 31, 2026, subject to recoupment by the Adviser within three years. Adviser has additionally agreed to reimburse Operating Expenses up to the Annual Limit of 2.00% of Net Assets until December 31, 2026. Total Annual Expense Ratio for each class is as follows: Class I: 6.28% Gross (estimated)/0.00% Net; Class A: 6.53% Gross (estimated)/0.25% Net; and Class C: 7.28% Gross (estimated)/1.00% Net.
ii Benchmark since-inception returns are calculated using the Fund's inception date of 08/06/2025 to ensure consistency in reporting time periods. Actual fund inception date for Eldridge BBB-B CLO ETF is 01/24/2023; actual fund inception date for Janus Henderson B-BBB CLO ETF is 01/11/2022; actual index inception date for ICE BofA BB US High Yield Index is 12/31/1996; and actual index inception date for Morningstar LSTA US Leveraged Loan Index is 12/31/2000.
iii Source: Bloomberg, Eldridge BBB-B CLO ETF, as of 01/31/2026. Total annualized returns calculated using share price. There may be material differences between the Fund offering and Eldridge BBB-B CLO ETF in costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features. For example, the Fund invests at least 80% of its net assets in non-mortgage related structured credit instruments, including asset-backed securities, collateralized loan obligations and other securitized investments representing interests in cashflows from various assets, such as loans, leases, and warehouse facilities, whose debt is rated below investment grade, or in limited circumstances unrated, which have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal, may be difficult to value and illiquid. Furthermore, the Fund has an interval fund structure and conducts quarterly repurchase offers at NAV, of no less than 5% of our outstanding shares. Conversely, the Eldridge BBB-B CLO ETF invests at least 80% of its net assets (plus any borrowings made for investment purposes) in collateralized loan obligations ("CLOs") that are rated, at the time of purchase, between BBB+ and B- or an equivalent rating by a nationally recognized statistical rating organization. Additionally, the Eldridge BBB-B CLO ETF offers intradaily liquidity on an exchange at market-determined prices.
iv Source: Bloomberg, Janus Henderson B-BBB CLO ETF, as of 01/31/2026. Total annualized returns calculated using share price. There may be material differences between the Fund offering and Janus Henderson B-BBB CLO ETF in costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features. For example, the Fund invests at least 80% of its net assets in non-mortgage related structured credit instruments, including asset-backed securities, collateralized loan obligations and other securitized investments representing interests in cashflows from various assets, such as loans, leases, and warehouse facilities, whose debt is rated below investment grade, or in limited circumstances unrated, which have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal, may be difficult to value and illiquid. Furthermore, the Fund has an interval fund structure and conducts quarterly repurchase offers at NAV, of no less than 5% of our outstanding shares. Conversely, the Janus Henderson B-BBB CLO ETF invests at least 80% of its net assets (plus any borrowings made for investment purposes) in CLOs of any maturity that are rated between and inclusive of BBB+ and B- (or equivalent by a nationally recognized statistical rating organization. Additionally, the Janus Henderson B-BBB CLO ETF offers intradaily liquidity on an exchange at market-determined prices.
v Source: Bloomberg, ICE BofA BB US High Yield Index, as of 01/31/2026. There are material differences between the Fund offering and ICE BofA BB US High Yield Index. It is not possible to invest in an index. Individuals cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sales charges. There are differences between an investment in the Fund and the securities comprising the ICE BofA BB US High Yield Index ("HY Index"). For example, the Fund invests at least 80% of its net assets in non-mortgage related structured credit instruments, including asset-backed securities, collateralized loan obligations and other securitized investments representing interests in cashflows from various assets, such as loans, leases, and warehouse facilities, whose debt is rated below investment grade, or in limited circumstances unrated, which have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal, may be difficult to value and illiquid. Conversely, the HY Index is a subset of the ICE BofA US High Yield Master II Index and is comprised of market capitalization-weighted U.S. dollar-denominated high-yield or below investment grade corporate bonds and includes all securities with a given investment grade rating BB, and have at least one year to maturity and have a minimum outstanding par amount of $100 million. Further, there may be different costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features for the securities comprising the HY Index and the Fund.
vi Source: Bloomberg, Morningstar LSTA LL Index, as of 01/31/2026. There are material differences between the Fund offering and the Morningstar LSTA LL Index. It is not possible to invest in an index. Individuals cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sales charges. There are differences between an investment in the Fund and the securities comprising Morningstar LSTA LL Index ("Leveraged Loan Index"). For example, the Fund invests at least 80% of its net assets in non-mortgage related structured credit instruments, including asset-backed securities, collateralized loan obligations and other securitized investments representing interests in cashflows from various assets, such as loans, leases, and warehouse facilities, whose debt is rated below investment grade, or in limited circumstances unrated, which have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal, may be difficult to value and illiquid. Conversely, the Leveraged Loan Index is comprised of syndicated term leveraged loans that are held within top-tier institutional investor loan portfolios tracked by PitchBook LCD that have first lien seniority, at least one year to maturity, have a minimum initial spread of Base Rate + 125bps, and have an initial par value of at least $50 million. Further, there may be different costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features for the securities comprising the Leveraged Loan Index and the Fund.
