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RiverNorth Launches Flexible Municipal Income Fund with MacKay Municipal ManagersTM*

RFM | March 31, 2020

CHICAGO

RiverNorth Capital Management, LLC (“RiverNorth”), an investment management firm specializing in opportunistic strategies, announced the launch of the RiverNorth Flexible Municipal Income Fund, Inc. (the “Fund”), a new municipal focused closed-end fund. RiverNorth will act as the investment adviser to the Fund and MacKay Shields LLC ("MacKay Shields") will act as subadviser. This is the third fund co-managed by the investment firms. The Fund will use the load waived pricing structure pioneered by RiverNorth. As a result, investors will not pay any upfront expenses, which allows the Fund to be priced at $20.00 per share with an initial net asset value (NAV) of $20.00 per share. Trading on the New York Stock Exchange began on March 27, 2020 under the symbol "RFM.”

“In this time of an unprecedented health crisis combined with the resulting economic and capital market uncertainty, we are thrilled with investor response to the Fund and very proud to announce its successful launch”, said Patrick Galley, RiverNorth’s Chief Executive Officer and Chief Investment Officer. “Raising a fresh portfolio of cash in a closed-end fund structure to be deployed in a period of dislocated markets is very timely in our opinion. Elements of the Fund’s design that may be of particular interest to investors include its flexible ability to opportunistically allocate up to 65% of managed assets to the tactical municipal closed-end fund strategy. We believe this increased flexibility may serve to enhance potential additional excess return from closed-end fund discount trading opportunities, especially in light of the recent market volatility.”

The Fund’s primary investment objective is current income exempt from regular U.S. federal income taxes (but which may be includable in taxable income for purposes of the Federal alternative minimum tax). The Fund’s secondary investment objective is total return. As the investment adviser, RiverNorth will strategically allocate the Fund’s assets between two principal investment strategies: the Tactical Municipal Closed-End Fund Strategy, managed by RiverNorth, and the Municipal Bond Income Strategy, managed by MacKay Shields.

“We are delighted to be partnering for a third time with the municipal closed-end fund team at RiverNorth,” said Robert DiMella, Executive Managing Director and Portfolio Manager of MacKay Shields. “The municipal bond market has been prone to periods of volatility. As active relative-value municipal bond managers with an intense focus on mispriced securities, we view this volatility and resulting inefficiencies as potential investment opportunities.”

The Fund raised $110 million in its initial public offering of shares of common stock. Should the underwriters exercise the overallotment option in full, which may or may not occur, the Fund will raise approximately $127 million.

The lead managers of the underwriting syndicate were UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets and Stifel.

For more information, please visit us at www.rivernorth.com.

About RiverNorth

RiverNorth Capital Management, LLC is an investment management firm founded in 2000. With approximately $4.6 billion in assets under management as of February 29, 2020, RiverNorth specializes in opportunistic investment strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is the investment manager to multiple registered and private funds.

About MacKay Shields LLC

MacKay Shields LLC (“MacKay Shields”) is an indirect wholly-owned subsidiary of New York Life Insurance Company and a wholly-owned subsidiary of New York Life Investment Management Holdings LLC. MacKay Shields is a fixed-income and equity investment management firm with approximately $134.8 billion in assets under management as of February 29, 2020. MacKay Shields manages fixed-income and equity strategies for high-net worth individuals, institutional clients, and mutual funds.

The Fund has no operating history. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.

This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. The information in this press release is not complete and is subject to change.

Investors should read the Fund’s prospectus and consider the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750.

The Fund is a closed-end fund, and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering has closed, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value.

Shares of closed-end investment companies frequently trade at a discount to their net asset value and initial offering price. The risk of loss due to this discount may be greater for initial investors expecting to sell their shares in a relatively short period after completion of the initial public offering.

Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing in the common shares of the Fund, you should consider the risks as well as the other information in the prospectus.

Although the fund is load waived, normal fund expenses still apply.

Please consult your personal tax advisor regarding the tax implications of owning this fund.

*MacKay Municipal Managers™ is a trademark owned by MacKay Shields LLC used to describe a portfolio management team within Mackay Shields LLC.

RiverNorth is not affiliated with MacKay Shields, UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets and Stifel.

RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC.

ALPS Distributors, Inc. FINRA Member Firm.

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