HOUSTON, Sept. 15, 2015 /PRNewswire/ -- Earlier today the Internal Revenue Service ("IRS") adopted final regulations based upon IRS proposals that were initially announced on August 2, 2013. These adopted regulations will require Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) to aggregate the investment holdings of its wholly-owned subsidiary Salient Midstream & MLP Fund, Inc. ("Subsidiary") with its direct investment holdings for purposes of determining whether more than 25% of its total assets are invested in the securities of one or more "qualified publicly traded partnerships." Such "QPTPs" include master limited partnerships ("MLPs"), in which the Fund and Subsidiary invest. The regulations do not impact Fund investments in affiliates of MLPs or other Midstream Companies structured as corporations.

The regulations will apply to quarters that begin on or after December 15, 2015. Therefore, the Fund's portfolio, including assets held by the Subsidiary, must hold no more than 25% MLPs by the end of the fiscal quarter ending on May 31, 2016.

The Advisor to the Fund, Salient Capital Advisors, LLC, is evaluating possible investment alternatives and intends to reduce its overall investments in MLPs to no more than 25% of the Fund's total assets before the May 2016 deadline.

The Advisor has been aware of the potential for the recently announced IRS regulations since 2013, as previously disclosed in the Fund's quarterly filings with the Securities and Exchange Commission, and is confident in its ability to maintain compliance under its existing Regulated Investment Company ("RIC") structure. The Advisor also remains committed to its investment objectives of providing a high level of total return with an emphasis of making quarterly cash distributions to shareholders.

Past performance is not indicative of future results.

Salient Midstream & MLP Fund is a Delaware statutory trust registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its common shareholders. The Fund seeks to achieve that objective by investing at least 80% of its total assets in securities of MLPs and midstream companies. There can be no assurance that the Fund will achieve its investment objective.

This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund's present expectations or projections indicated in any forward-looking statements. Elimination or reduction of the Subsidiary's investments in MLPs, and/or use of any alternatives, could negatively affect the Fund's investment returns. Additional risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund's filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objective will be attained.

About Salient
Salient Partners, L.P. ("Salient") is an innovative asset management firm headquartered in Houston, Texas, that provides alternative investment strategies to institutional investors and financial advisors. The firm offers a broad selection of equity, fixed income, risk-balancing, asset-allocation, energy and commodity, real estate, hedge fund and private equity strategies in the form of mutual funds, separately managed accounts and closed-end funds. Salient's strategies aim to eliminate unrewarded risk, reduce investing costs and focus on fundamental drivers of returns. A core element of Salient's platform is its thought leadership and ongoing education of financial advisors and investors, which the firm provides via weekly market observations, monthly webcasts and its nationally-recognized Epsilon Theory newsletter. For more information about Salient, visit www.salientpartners.com. Follow Salient on LinkedIn or Twitter.

FOR SHAREHOLDER INQUIRIES:

Salient Capital Advisors, LLC
info@salientpartners.com
800-994-0755

FOR MEDIA INQUIRIES:

Catherine P. Jones
Polisi Jones Communications
cjones@polisijones.com
917-330-8934

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SOURCE Salient Midstream & MLP Fund