FS Investments and KKR Creating Largest BDC Platform

April 10, 2018

FS Investments and KKR Creating Largest BDC Platform

April 9, 2018 | James Sprow | Blue Vault

FS Investments and KKR today announced the closing of their previously announced transaction to create the market’s largest business development company (BDC) platform, with $18 billion in combined assets under management.

Effective April 9, the new partnership will provide investment advisory services to six BDCs that FS Investments sponsors: FS Investment Corp., FS Investment Corp. II, FS Investment Corp. III, FS Investment Corp. IV, Corporate Capital Trust Inc. and Corporate Capital Trust II. The FS Investments-sponsored funds will be able to co-invest with KKR’s other funds and accounts.

Todd Builione, President of KKR Credit and Markets, said, “We have enjoyed working with our partners at FS over the past many months.  We firmly believe that through our collective scale and complementary expertise, our combined BDC franchise is positioned to drive superior results for our investors – and holistic financing solutions to our sponsor and corporate clients.”

FS Investments and Blackstone Group LP’s credit platform, GSO Capital Partners LP, have concluded their relationship with respect to all of FS Investments’ sponsored funds that were subadvised by GSO, effective April 9.

FS Investments also announced the closing of its joint venture with EIG Global Energy Partners LLC to manage FS Energy and Power Fund, an energy-focused BDC with $4.3 billion in assets under management.

“We have been working closely with the KKR team over the past several months to prepare for this transition and are now looking forward to realizing the full benefits of our combined platform for investors,” said Michael Forman, Chairman and Chief Executive Officer of FS Investments. “Our focus will continue to be on optimizing the platform and enhancing performance as we also evaluate potential mergers of these BDCs to create value.”

About FS Investments

FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth and focuses on setting industry standards for investor protection, education and transparency.

FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Washington, DC. Visit fsinvestments.com to learn more.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.


Learn more about FS Investments on the Blue Vault Sponsor Focus page.

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Thomas E. Burns, III
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.