0001925779 2023-11-01 2023-11-13 pure iso4217:USD FLAT ROCK ENHANCED INCOME FUND FEES AND FUND EXPENSES The disclosure under the heading “Fees and Fund Expenses” on page 12 of the Fund’s prospectus is deleted in its entirety and replaced with the following: The following table includes fees and expenses that an investor in the Fund may incur, directly or indirectly. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 10pt; text-indent: -10pt; width: 89%">Shareholder Transaction Expenses</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%"> </td> <td style="width: 9%; padding-bottom: 2.25pt; text-align: right">None.</td> <td style="white-space: nowrap; width: 1%; padding-bottom: 2.25pt; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 2.25pt"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 10pt; text-indent: -10pt">Annual Expenses (as a percentage of net assets attributable to shares)(1)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 2.25pt; padding-left: 20pt; text-indent: -10pt">Management Fees(2)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">1.38</td> <td style="white-space: nowrap; padding-bottom: 2.25pt">%</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 20pt; text-indent: -10pt">Incentive Fees (15% of investment income)(3)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">1.50</td> <td style="white-space: nowrap; padding-bottom: 2.25pt">%</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 2.25pt; padding-left: 20pt; text-indent: -10pt">Interest Payments on Borrowed Funds(4)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">0.10</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; text-align: right">% </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 20pt; text-indent: -10pt">Other Expenses(5)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">1.10</td> <td style="white-space: nowrap; padding-bottom: 2.25pt">%</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 2.25pt; padding-left: 20pt; text-indent: -10pt">Acquired Fund Fees and Expenses(6)</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">None</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 10pt; text-indent: -10pt">Total Annual Expenses</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; text-align: right">4.08</td> <td style="white-space: nowrap; padding-bottom: 2.25pt">%</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(1)</td><td style="text-align: justify">The fees and expenses in this table are based upon the weighted average of estimated net assets of the Fund for its first year of operations of $50 million.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(2)</td><td style="text-align: justify">The SEC requires that the “management fees” percentage be shown as a percentage of net assets attributable to common shareholders, rather than total assets, including assets that have been funded with borrowed monies because common shareholders bear all of this cost.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(3)</td><td style="text-align: justify">The incentive fee is based on the Fund’s performance and will not be paid unless the Fund achieves certain performance targets. The Fund expects the incentive fee to increase to the extent the Fund earns greater interest income through its investments. The incentive fee is calculated and payable quarterly in arrears based upon the Fund’s “pre-incentive fee net investment income” for the immediately preceding fiscal quarter, and is subject to a hurdle rate, expressed as a rate of return on the Fund’s adjusted capital, equal to 1.75% per quarter, or an annualized hurdle rate of 7.00%, subject to a “catch-up” feature. See “Management of the Fund - Investment Advisory Agreement” for a full explanation of how the Incentive Fee is calculated.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(4)</td><td style="text-align: justify">These expenses represent estimated interest payments we expect to incur in connection with our outstanding preferred shares during the current fiscal year. As of November 10, 2023, we had 1,000 shares of Floating Rate Series A Cumulative Term Preferred Shares due 2025 outstanding.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(5)</td><td style="text-align: justify">Other expenses include accounting, legal and auditing fees, reimbursement of the compensation for administrative personnel and fees payable to the Fund’s independent trustees. Other expenses are estimated for the current fiscal year.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 24pt">(6)</td><td style="text-align: justify">Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. These indirect costs may include performance fees paid to the Acquired Fund’s adviser or its affiliates. It does not include brokerage or transaction costs incurred by the Acquired Funds. If Acquired Fund Fees and Expenses are incurred, the operating expenses in this fee table will not correlate to the expense ratio in the Fund’s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund. The amounts under this line item are estimated for the current fiscal year and are less than 1 basis point. Therefore, any such estimated amounts are included in other expenses.</td></tr></table> The following table includes fees and expenses that an investor in the Fund may incur, directly or indirectly. Shareholder Transaction Expenses None. Annual Expenses (as a percentage of net assets attributable to shares)(1) Management Fees(2) 1.38%Incentive Fees (15% of investment income)(3) 1.50%Interest Payments on Borrowed Funds(4) 0.10% Other Expenses(5) 1.10%Acquired Fund Fees and Expenses(6) None Total Annual Expenses 4.08% 0.0138 0.015 0.001 0.011 0.0408 EXAMPLE The following example illustrates the hypothetical expenses that you would pay on a $1,000 investment assuming annual expenses attributable to shares remain unchanged and shares earn a 5% annual return. The example reflects total expenses for the one-, three-, five-, and ten-year periods: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; padding-right: 3pt; padding-bottom: 2.25pt">Example</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: center">1 Year</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: center">3 Years</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: center">5 Years</td> <td style="white-space: nowrap; padding-bottom: 2.25pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding-bottom: 2.25pt; text-align: center">10 Years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.25pt; padding-left: 10pt; text-indent: -10pt; width: 55%">Shares of Beneficial Interest</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%">$</td> <td style="padding-bottom: 2.25pt; text-align: right; width: 9%">41</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%">$</td> <td style="padding-bottom: 2.25pt; text-align: right; width: 9%">123</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%">$</td> <td style="padding-bottom: 2.25pt; text-align: right; width: 9%">207</td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%"> </td> <td style="white-space: nowrap; padding-bottom: 2.25pt; width: 1%">$</td> <td style="padding-bottom: 2.25pt; text-align: right; width: 9%">421</td> <td style="width: 1%"> </td></tr> </table> 41 123 207 421 false 424B3 0001925779 The fees and expenses in this table are based upon the weighted average of estimated net assets of the Fund for its first year of operations of $50 million. The SEC requires that the “management fees” percentage be shown as a percentage of net assets attributable to common shareholders, rather than total assets, including assets that have been funded with borrowed monies because common shareholders bear all of this cost. The incentive fee is based on the Fund’s performance and will not be paid unless the Fund achieves certain performance targets. The Fund expects the incentive fee to increase to the extent the Fund earns greater interest income through its investments. The incentive fee is calculated and payable quarterly in arrears based upon the Fund’s “pre-incentive fee net investment income” for the immediately preceding fiscal quarter, and is subject to a hurdle rate, expressed as a rate of return on the Fund’s adjusted capital, equal to 1.75% per quarter, or an annualized hurdle rate of 7.00%, subject to a “catch-up” feature. See “Management of the Fund - Investment Advisory Agreement” for a full explanation of how the Incentive Fee is calculated. These expenses represent estimated interest payments we expect to incur in connection with our outstanding preferred shares during the current fiscal year. As of November 10, 2023, we had 1,000 shares of Floating Rate Series A Cumulative Term Preferred Shares due 2025 outstanding. Other expenses include accounting, legal and auditing fees, reimbursement of the compensation for administrative personnel and fees payable to the Fund’s independent trustees. Other expenses are estimated for the current fiscal year. Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. These indirect costs may include performance fees paid to the Acquired Fund’s adviser or its affiliates. It does not include brokerage or transaction costs incurred by the Acquired Funds. If Acquired Fund Fees and Expenses are incurred, the operating expenses in this fee table will not correlate to the expense ratio in the Fund’s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund. The amounts under this line item are estimated for the current fiscal year and are less than 1 basis point. Therefore, any such estimated amounts are included in other expenses.