# EDGAR Filing Document

**Accession Number:** 0001954541
**File Stem:** 0000000000-23-000456
**Filing Date:** 2023-1
**Character Count:** 20260
**Document Hash:** debee41625feb293cb02ca00aa4d9d04
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-000456.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0000000000-23-000456

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230117

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Modern Markets Flagship Access Fund Inc.
- **CENTRAL INDEX KEY:** 0001954541
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 3100 CLARENDON BLVD., STE 200
- **CITY:** ARLINGTON
- **STATE:** VA
- **ZIP:** 22201
- **BUSINESS PHONE:** (703) 977-1222

**MAIL ADDRESS:**
- **STREET 1:** 3100 CLARENDON BLVD., STE 200
- **CITY:** ARLINGTON
- **STATE:** VA
- **ZIP:** 22201

## Text-Extract

```

                                                    January 9, 2023

Via Email

John J. Mahon, Esq.
Schulte Roth & Zabel LLP
901 Fifteenth Street, NW, Ste. 800
Washington, D.C. 20005
john.mahon@srz.com

       Re:     Modern Markets Flagship Access Fund Inc.
               Registration Statement on Form N-2
               File No. 811-23843

Dear Mr. Mahon:

        On December 9, 2022, you filed a registration statement on Form N-2 on
behalf of
Modern Markets Flagship Access Fund Inc. (the    Fund   ). We have reviewed the
registration
statement and have provided our comments below. Where a comment is made in one
location, it
is applicable to all similar disclosure appearing elsewhere in the registration
statement. All
capitalized terms not otherwise defined herein have the meaning given to them
in the registration
statement.

General

1. Please fill in all blanks, brackets, and otherwise missing information in a
post-effective
   amendment (e.g., fee table, organization documents, etc.). We may have
further comments.

Facing Sheet

2. Disclosure states that the Fund   s shares    will be issued solely in
private placement
   transactions that do not involve any    public offering    within the
meaning of Section 4(2) of,
   and/or Regulation D under, the Securities Act.    Please revise to state,
Section 4(a)(2).

Page A-3     Item 3. Fee Table

3. Footnote 5 refers to the possibility that the Fund may pursue co-investment
private equity
   investment opportunities in underlying operating businesses sourced by
Underlying Fund
   Managers. Please tell us whether such investment opportunities involve
affiliates, as defined
   under the Investment Company Act of 1940 (   1940 Act   ). If yes, please
clarify that co-
   investing with affiliates of the Fund requires exemptive relief from the
Commission and that
    the Fund may not receive such relief. Please tell us whether the Fund plans
to apply for
   exemptive relief.

Page A-4     Item 3. Fee Table

4. The last sentence in Footnote 7 refers to the    Investment Advisory
Agreement.    Please
   confirm the reference is correct, or perhaps refer instead to the
Administration Agreement,
   if accurate.

5. Please delete Footnote 8 if the expense limitation agreement does not last
for at least one
   year. See Item 3, Instr. 3.e. of Form N-1A.

Page A-5     Item 8. General Description of the Registrant

6. In the second bullet point, disclosure refers to the possibility that a
shareholder may be able
   to sell his/her shares. But, in the first bullet point, disclosure states
that a shareholder should
   not expect to be able to sell his/her shares. Please reconcile the
discrepancy.

Page A-6     Investment Objective

7. Your disclosure suggests that you will invest significantly in private
equity funds, including
   funds relying on section 3(c)(1) and 3(c)(7) under the 1940 Act, and that
you intend to limit
   sales to investors who satisfy the accredited investor standard. It is the
staff   s view that
   closed-end funds similar to yours should also impose a minimum initial
investment
   requirement of at least $25,000. Please revise to include such a
requirement.

8. If the Fund will invest in any funds/fund managers that are affiliates of
the Fund or its
   investment adviser, please disclose any related conflicts of interest.

9. In the ninth line of the second paragraph, disclosure states that the Fund
may invest in    other
   credit instruments.    Please specify what these other instruments are.

10. If foreign/emerging markets investments are a principal investments
strategy, please add such
    disclosure to this section. See    Emerging Markets    risk disclosure on
page A-17.

Page A-7     Fundamental Investment Policies

11. Regarding the sixth and eighth bullet points, please consider adding an
explanatory statement
    after each policy that describes the current 1940 Act limits in order to
provide more clarity
    regarding the fund   s investment limitations.

Page A-10     Senior Securities

12. Please delete    or emergency,    from the second to last sentence of this
section, which states,
       We may also borrow amounts up to 5% of the value of our total assets for
temporary or
    emergency purposes   .    See section 18(g) of the 1940 Act.

                                                  2
 Page A-17     Mezzanine Investments

13. Disclosure in this section refers to the Fund   s possible co-investment in
mezzanine loans that
    may not be protected by financial covenants. If the Fund will hold a
significant amount of
    covenant-lite loans, please revise your principal risks disclosure to
include the heightened
    risks associated with covenant-lite loans.

Page A-24     Non-U.S. Risk

14. Please consider whether it is necessary to add a risk regarding the
circumstances of Brexit.

Page A-35     Repurchase Risks

15. Please tell us on which provision of the federal securities laws the Fund
is relying on for
    repurchases.

16. Please disclose the timeframe on which an investor can expect to receive
the payment of
    proceeds from a share repurchase. We may have additional comments based on
your
    response.

Page A-36     Forum Selection

17. Disclosure states that    the forum selection clause included in our Bylaws
does not cover
    claims made by Shareholders pursuant to the securities laws of the United
States of America,
    or any rules or regulations promulgated thereunder.    In Part C,
disclosure indicates that the
    Bylaws are to be filed by amendment. Please confirm that the Bylaws
explicitly state that the
    forum selection provision does not apply to claims arising under the
federal securities laws.
    Otherwise, please revise the provision in the Bylaws.

Page A-41     Interested Directors

18. For each director who is an interested person of the Fund, as defined in
section 2(a)(19) of
    the 1940 Act and the rules thereunder, describe, in a footnote or
otherwise, the relationship,
    events, or transactions by reason of which the director is an interested
person. See Item 18.1,
    Instr. 2 of Form N-2.

Page A-44     Nominating and Corporate Governance Committee

19. Please state whether the Nominating and Corporate Governance Committee will
consider
    nominees recommended by shareholders and, if so, describe the procedures to
be followed by
    shareholders in submitting recommendations. See Item 18.5.b.4 of Form N-2.

Page A-48     Securities Ownership of Our Portfolio Managers

20. Please add all required disclosure regarding portfolio managers. See Item
9.1(c) of
    Form N-2.

                                                 3
 Page A-56     Control Share Acquisition

21. Please consider adding disclosure that addresses the legal uncertainty
related to control share
    act provisions and registered funds (i.e., Saba Capital CEF Opportunities
1, Ltd. et al. v.
    Nuveen Floating Rate Income Fund, et al., 21-CV-327 (JPO) (U.S. Dist.
Court., Southern
    District of New York) (Feb. 17, 2022)).

                     STATEMENT OF ADDITIONAL INFORMATION

Page B-2     Item 17. Investment Objectives and Policies

22. Please respond supplementally to the following:

   x   Describe specifically the types of rights and obligations that side
letter agreements would
       establish. For what consideration? What kind of    restrictions    and
 special rights    do
       the Fund and/or the adviser intend to create via side letter agreements
  with respect to
       activities of the Fund   ?
   x   How would side letter arrangements with the Fund and/or the adviser
compare to side
       letters typically entered into by private funds and their advisers?
Would any stockholder
       be able to request/negotiate side letters with the Fund? Would the Fund
be willing to
       grant special rights to any stockholder? If not, why not?
   x   Will the adviser (or affiliates) be party to any side letter? Will the
adviser (or affiliates)
       enter into separate side letter agreements or similar arrangements with
Fund stockholders
       who also have side letter agreements with the Fund? What types of rights
and obligations
       would such side arrangements with the adviser create? For what
consideration? Would
       side letters contemplate arrangements with respect to any adviser acting
in any capacity
       other than as adviser to the Fund?
   x   Describe the Board process for reviewing and approving side letter
agreements.
   x   Describe specifically all special rights that relate, directly or
indirectly, to stockholder
       voting.
   x   Does the Fund intend to publicly disclose non-public information
provided to
       stockholders? Would such stockholders be required to maintain
confidentiality? Would
       such stockholders be required to agree not to trade on non-public
information that they
       receive from the Fund? If so, what other    actions    can such
stockholders take on the
       basis of non-public information received from the Fund?

                                      *    *    *       *   *   *

        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments,
action, or absence of
action by the staff. Please respond to our comments in correspondence filed on
EDGAR and in
an amendment to the registration statement, as applicable.

                                                    4
        Should you have any questions regarding this letter, please contact me
at (202) 551-5166
or Jason Fox, Staff Accountant, at (202) 551-6757.

                                                   Sincerely,
                                                   /s/ Lisa N. Larkin
                                                   Lisa N. Larkin
                                                   Senior Counsel

cc:    Jason Fox, Staff Accountant
       John Lee, Branch Chief
       Christian Sandoe, Assistant Director

                                               5

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

U.S. Securities and Exchange Commission

## Division of Investment Management

January 9, 2023

### Via Email

John J. Mahon, Esq.  
Schulte Roth & Zabel LLP  
901 Fifteenth Street, NW, Ste. 800  
Washington, D.C. 20005  
john.mahon@srz.com

Re: Modern Markets Flagship Access Fund Inc.  
Registration Statement on Form N-2  
File No. 811-23843

Dear Mr. Mahon:

On December 9, 2022, you filed a registration statement on Form N-2 on behalf of Modern Markets Flagship Access Fund Inc. (the “Fund”). We have reviewed the registration statement and have provided our comments below. Where a comment is made in one location, it is applicable to all similar disclosure appearing elsewhere in the registration statement. All capitalized terms not otherwise defined herein have the meaning given to them in the registration statement.

### General

1. Please fill in all blanks, brackets, and otherwise missing information in a post-effective amendment (e.g., fee table, organization documents, etc.). We may have further comments.

### Facing Sheet

2. Disclosure states that the Fund’s shares “will be issued solely in private placement transactions that do not involve any “public offering” within the meaning of Section 4(2) of, and/or Regulation D under, the Securities Act.” Please revise to state, “Section 4(a)(2).”

### Page A-3 - Item 3. Fee Table

3. Footnote 5 refers to the possibility that the Fund may pursue co-investment private equity investment opportunities in underlying operating businesses sourced by Underlying Fund Managers. Please tell us whether such investment opportunities involve affiliates, as defined under the Investment Company Act of 1940 (“1940 Act”). If yes, please clarify that co-investing with affiliates of the Fund requires exemptive relief from the Commission and that

the Fund may not receive such relief. Please tell us whether the Fund plans to apply for exemptive relief.

# **Page A-4 - Item 3. Fee Table**

4. The last sentence in Footnote 7 refers to the “Investment Advisory Agreement.” Please confirm the reference is correct, or perhaps refer instead to the “Administration Agreement,” if accurate.

5. Please delete Footnote 8 if the expense limitation agreement does not last for at least one year. See Item 3, Instr. 3.e. of Form N-1A.

# **Page A-5 - Item 8. General Description of the Registrant**

6. In the second bullet point, disclosure refers to the possibility that a shareholder may be able to sell his/her shares. But, in the first bullet point, disclosure states that a shareholder should not expect to be able to sell his/her shares. Please reconcile the discrepancy.

# **Page A-6 - Investment Objective**

7. Your disclosure suggests that you will invest significantly in private equity funds, including funds relying on section 3(c)(1) and 3(c)(7) under the 1940 Act, and that you intend to limit sales to investors who satisfy the accredited investor standard. It is the staff’s view that closed-end funds similar to yours should also impose a minimum initial investment requirement of at least $25,000. Please revise to include such a requirement.

8. If the Fund will invest in any funds/fund managers that are affiliates of the Fund or its investment adviser, please disclose any related conflicts of interest.

9. In the ninth line of the second paragraph, disclosure states that the Fund may invest in “other credit instruments.” Please specify what these other instruments are.

10. If foreign/emerging markets investments are a principal investments strategy, please add such disclosure to this section. See “Emerging Markets” risk disclosure on page A-17.

# **Page A-7 - Fundamental Investment Policies**

11. Regarding the sixth and eighth bullet points, please consider adding an explanatory statement after each policy that describes the current 1940 Act limits in order to provide more clarity regarding the fund’s investment limitations.

# **Page A-10 - Senior Securities**

12. Please delete “or emergency,” from the second to last sentence of this section, which states, “We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes...” See section 18(g) of the 1940 Act.

2

### **Page A-17 - Mezzanine Investments**

13. Disclosure in this section refers to the Fund’s possible co-investment in mezzanine loans that may not be protected by financial covenants. If the Fund will hold a significant amount of covenant-lite loans, please revise your principal risks disclosure to include the heightened risks associated with covenant-lite loans.

### **Page A-24 - Non-U.S. Risk**

14. Please consider whether it is necessary to add a risk regarding the circumstances of Brexit.

### **Page A-35 - Repurchase Risks**

15. Please tell us on which provision of the federal securities laws the Fund is relying on for repurchases.

16. Please disclose the timeframe on which an investor can expect to receive the payment of proceeds from a share repurchase. We may have additional comments based on your response.

### **Page A-36 - Forum Selection**

17. Disclosure states that “the forum selection clause included in our Bylaws does not cover claims made by Shareholders pursuant to the securities laws of the United States of America, or any rules or regulations promulgated thereunder.” In Part C, disclosure indicates that the Bylaws are to be filed by amendment. Please confirm that the Bylaws explicitly state that the forum selection provision does not apply to claims arising under the federal securities laws. Otherwise, please revise the provision in the Bylaws.

### **Page A-41 - Interested Directors**

18. For each director who is an interested person of the Fund, as defined in section 2(a)(19) of the 1940 Act and the rules thereunder, describe, in a footnote or otherwise, the relationship, events, or transactions by reason of which the director is an interested person. *See* Item 18.1, Instr. 2 of Form N-2.

### **Page A-44 - Nominating and Corporate Governance Committee**

19. Please state whether the Nominating and Corporate Governance Committee will consider nominees recommended by shareholders and, if so, describe the procedures to be followed by shareholders in submitting recommendations. *See* Item 18.5.b.4 of Form N-2.

### **Page A-48 - Securities Ownership of Our Portfolio Managers**

20. Please add all required disclosure regarding portfolio managers. *See* Item 9.1(c) of Form N-2.

3

## **Page A-56 - Control Share Acquisition**

21. Please consider adding disclosure that addresses the legal uncertainty related to control share act provisions and registered funds (i.e., *Saba Capital CEF Opportunities 1, Ltd. et al. v. Nuveen Floating Rate Income Fund, et al.*, 21-CV-327 (JPO) (U.S. Dist. Court., Southern District of New York) (Feb. 17, 2022)).

## **STATEMENT OF ADDITIONAL INFORMATION**

### **Page B-2 - Item 17. Investment Objectives and Policies**

22. Please respond supplementally to the following:

- • Describe specifically the types of rights and obligations that side letter agreements would establish. For what consideration? What kind of “restrictions” and “special rights” do the Fund and/or the adviser intend to create via side letter agreements “with respect to activities of the Fund”?
- • How would side letter arrangements with the Fund and/or the adviser compare to side letters typically entered into by private funds and their advisers? Would any stockholder be able to request/negotiate side letters with the Fund? Would the Fund be willing to grant special rights to any stockholder? If not, why not?
- • Will the adviser (or affiliates) be party to any side letter? Will the adviser (or affiliates) enter into separate side letter agreements or similar arrangements with Fund stockholders who also have side letter agreements with the Fund? What types of rights and obligations would such side arrangements with the adviser create? For what consideration? Would side letters contemplate arrangements with respect to any adviser acting in any capacity other than as adviser to the Fund?
- • Describe the Board process for reviewing and approving side letter agreements.
- • Describe specifically all special rights that relate, directly or indirectly, to stockholder voting.
- • Does the Fund intend to publicly disclose non-public information provided to stockholders? Would such stockholders be required to maintain confidentiality? Would such stockholders be required to agree not to trade on non-public information that they receive from the Fund? If so, what other “actions” can such stockholders take on the basis of non-public information received from the Fund?

\* \* \* \* \*

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action, or absence of action by the staff. Please respond to our comments in correspondence filed on EDGAR and in an amendment to the registration statement, as applicable.

4

Should you have any questions regarding this letter, please contact me at (202) 551-5166 or Jason Fox, Staff Accountant, at (202) 551-6757.

Sincerely,  
/s/ Lisa N. Larkin  
Lisa N. Larkin  
Senior Counsel

cc: Jason Fox, Staff Accountant  
John Lee, Branch Chief  
Christian Sandoe, Assistant Director

5