NEW YORK, February 7, 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%) based on net asset value, reflecting strong performance on an absolute basis and relative to the Eldridge BBB-B CLO ETF, Janus Henderson B-BBB CLO ETF, ICE BofA BB US High Yield Index, Morningstar LSTA US Leveraged Loan Index 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.
Performance data above represents past performance. Past performance is not indicative of future performance. Current performance may be lower or higher than the performance data stated above, and investors should be aware that investment returns and principal value of an investment will fluctuate so that shares may be worth more or less at redemption than the performance data above suggests.
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. The achievement of investment returns is dependent on a multitude of factors, many of which are beyond the control of Prospect Enhanced Yield Fund. Any investment is subject to market risk, including the risk of loss of all or a portion of the invested amount. Market conditions may cause the value of securities to fluctuate, sometimes significantly. Any investment is subject to a variety of other risks and there can be no assurance that any investment will meet its investment objectives, if any, or that investors will not incur losses.
Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. The Fund will ordinarily pay distributions from its net investment income, if any, on a monthly basis. Distributions are not guaranteed. Based on current estimates, January, February, and March 2026 distributions reflect a return of income, and the Fund does not expect any portion of the distributions to be a return of capital. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.
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 StatementsThis 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.