Press Releases August 10, 2026 04:15 PM

XFLT Shareholders Approve the King Street Sub-Advisory Agreement

Shareholders approve King Street sub-advisory agreement, setting stage for enhanced management and long-term growth of XFLT

By Jordan Park
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XFLT

XAI Floating Rate & Alternative Income Trust (XFLT) shareholders overwhelmingly approved the King Street Capital Management sub-advisory agreement, enabling a new investment leadership partnership. The Board and shareholders expect this collaboration with King Street's experienced credit platform and resources to improve fund performance, expand liquidity, and create long-term shareholder value.

XFLT Shareholders Approve the King Street Sub-Advisory Agreement
XFLT
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Key Points

  • Shareholders approved the long-term sub-advisory agreement with King Street Capital Management, signaling confidence in new fund management.
  • King Street's extensive credit research capabilities and $30 billion asset platform, including a large CLO business, will enhance XFLT's portfolio management and investment opportunities.
  • A structured liquidity plan and experienced portfolio management team are expected to support stronger distributions and improved fund performance over time.

Shareholders Affirm Board-Led Strategy to Enhance Performance, Expand Liquidity and Position XFLT for Long-Term Success

King Street Sub-Adviser Approval Clears Path for New Investment Leadership

CHICAGO, Aug. 10, 2026 (GLOBE NEWSWIRE) -- XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”) announced the certified results of the Special Meeting of Shareholders held on August 6, 2026. A supermajority of votes cast by shareholders voted to approve the long-term investment sub-advisory agreement (the “King Street Sub-Advisory Agreement”) among the Fund, XA Investments LLC (“XAI”) and Rockford Tower Asset Management, L.L.C. (the “King Street Sub-Adviser”), a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”).

“Today marks an important milestone for XFLT,” said Greg Dingens, Chairman of the XFLT Board of Trustees. “On behalf of the Board, I sincerely thank the Fund’s shareholders for their support and engagement throughout this process. We are enthusiastic about partnering with King Street and Rockford Tower Asset Management, whose credit expertise, talented investment team and global resources provide a powerful platform for the Fund's future success. We look forward to this next chapter with optimism and a continued commitment to serving the best interests of all XFLT shareholders.”

Throughout this process, the Board of Trustees acted with a singular focus on protecting and enhancing value for all XFLT shareholders. After conducting a comprehensive review of the Fund's performance, the Board unanimously concluded that appointing the King Street Sub-Adviser represents the strongest path forward for the Fund. The Board's decision was grounded in its fiduciary duty, extensive due diligence and commitment to improving long-term shareholder outcomes through enhanced portfolio management capabilities, a broader investment opportunity set, and a structured liquidity plan designed to support shareholder value.

“We thank shareholders for their support throughout this process and are confident about the future of XFLT,” said Kimberly Flynn, President of XA Investments and XFLT Vice President. “With the approval of the King Street Sub-Advisory Agreement, XFLT gains access to one of the industry's leading alternative credit platforms. Through Rockford Tower Asset Management, shareholders will benefit from the resources and expertise of King Street's approximately $30 billion platform, including a more than $12 billion CLO business, extensive credit research capabilities and deep experience investing across market cycles. With Young Choi serving as Portfolio Manager, we believe XFLT is positioned to capitalize on a broader investment opportunity set and deliver stronger long-term outcomes for shareholders.”

With shareholder approval now secured and the long-term investment sub-advisory agreement fully executed, XFLT enters a new chapter with King Street and Rockford Tower Asset Management overseeing portfolio management for the Fund. The Board believes the combination of King Street's differentiated credit platform, experienced investment professionals and substantial scale, together with the previously announced liquidity plan, provides a compelling foundation for improved performance, stronger distribution support and long-term shareholder value creation.

About XA Investments

XA Investments LLC is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

About King Street Capital Management

King Street is a global alternative investment firm founded in 1995 that manages $30 billion in assets across public and private markets. The firm marries rigorous fundamental research with tactical trading and differentiated sourcing capabilities to identify investment opportunities across asset classes, up and down the capital structure. For more information, please visit www.kingstreet.com. Follow King Street Capital Management on LinkedIn.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Fund’s actual results are the performance of the portfolio of securities held by the Fund, the conditions in the U.S. and international financial and other markets, the price at which Fund shares trade in the public markets and other factors. Although the Fund believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Fund’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Fund’s ongoing obligations under the federal securities laws, the Fund does not intend, and the Fund undertakes no obligation, to update any forward-looking statement.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Past performance is no guarantee of future results. An investment in the Fund involves risk, including the possible loss of principal. Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. Please refer to the Fund’s filings with the Securities and Exchange Commission for additional information.

Media Contact: 

XA Investments LLC
Kim Shepherd
Senior Consultant
[email protected]
312-623-5123
www.xainvestments.com

Prosek Partners
[email protected]


Risks

  • Continued market volatility and credit market conditions may impact the fund's performance despite new management.
  • The fund's ability to execute the liquidity plan and expand investor demand remains uncertain in fluctuating financial markets.
  • Forward-looking statements imply potential variability in future results due to factors such as portfolio holdings performance and general economic conditions.

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