Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

Franklin Square Closes on $1.9 Billion in Private Deals in the 4th Quarter

Franklin Square Capital Partners, an alternative investment manager and the largest manager of business development companies, announced that its BDC direct lending platform committed more than $1.9 billion to private deals in the fourth quarter of 2015, and more than $5.6 billion for the full year 2015.

New directly originated deals during the quarter included the addition of six new portfolio companies and 10 new commitments to existing portfolio companies. The $5.6 billion in new private deals in 2015 represents Franklin Square’s highest annual total on record and an increase of more than $400 million from 2014. New directly originated deals in 2015 were completed with 46 portfolio companies headquartered in 22 different U.S. states.

“The scale of our direct lending platform is a competitive advantage for our investors, particularly when markets are experiencing volatility,” said Michael C. Forman, chairman and chief executive officer of Franklin Square. “We believe our ability to put capital to work when traditional lenders are under pressure will prove beneficial to our investors in the long run.”

Newly committed capital was provided by four BDCs managed by affiliates of Franklin Square and sub-advised by GSO Capital Partners LP or its affiliate: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II, FS Investment Corporation III, and FS Energy and Power Fund. Additionally, in January 2016 Franklin Square announced the launch of its newest BDC, FS Investment Corporation IV, expanding the scale of its direct lending platform.

“We invested a significant amount of capital during a period of time in which the primary market for syndicated loans froze for many companies and traditional loan funds experienced heavy outflows,” added Michael Kelly, chief investment officer of Franklin Square. “Our platform displayed its advantages in the fourth quarter by underwriting 16 new private deals…”

Franklin Square was founded in Philadelphia in 2007 and introduced the industry’s first non-traded BDC. As of December 31, 2015, the firm managed approximately $16.8 billion in total assets, including $15.5 billion in BDC assets.

For more Franklin Square-related news, visit their directory listing here.