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Franklin Square Energy and Power Fund Reports First Quarter Earnings

FS Energy and Power Fund, a publicly registered non-traded business development company, announced its financial results for the quarter ended March 31, 2016. The company will hold a conference call to discuss these results at 10:00 a.m. Eastern Time on Thursday, May 19, 2016.

“We have sought to capitalize on recent market dynamics by continuing to transition the portfolio into directly originated investments, selectively trimming positions that we believe have more limited upside potential in the current environment and rotating into assets that we believe offer compelling total return potential,” commented Michael C. Forman, chief executive officer of FSEP.

FSEP previously announced that it intended to close its public offering to new investors near the end of the second quarter or the beginning of the third quarter of 2016, subject to market conditions and the pace of capital raising. The company now expects to close its public offering to new investors near the end of the third quarter of 2016.

Financial Highlights for the Quarter Ended March 31, 2016

• Net investment income of $0.17 per share, compared to $0.17 per share for the quarter ended March 31, 2015.

• Net decrease in net assets resulting from operations of $0.10 per share, compared to a net increase in net assets resulting from operations of $0.17 per share for the quarter ended March 31, 2015.

•Paid regular cash distributions to shareholders totaling approximately $0.18 per share.

Portfolio Highlights as of March 31, 2016

• The fair value of FSEP’s investments was approximately $2.9 billion.

• The company’s portfolio consisted of investments in 84 portfolio companies.

• Core investment strategies represented 84 percent of the portfolio by fair value, including 66 percent in direct originations and 18 percent in opportunistic investments. Broadly syndicated/other investments represented 16 percent of the portfolio.

• FSEP’s estimated gross annual portfolio yield prior to leverage was 9.6 percent, compared to 9.2 percent as of March 31, 2015.

• Non-accruals represented 5.5 percent of the investment portfolio based on fair value.

Annual Shareholder Conference Call

The company will hold its annual shareholder conference call on Thursday, May 19, 2016, at 10:00 a.m. Eastern Time. To participate, dial (877) 443-2408 at least 10 minutes prior to the beginning of the conference call and use the confirmation code 92495092 when prompted. An audio archive of the call will be available for replay on the website for a period of 30 days following the call.

FS Energy and Power Fund is sponsored by Franklin Square and focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. The BDC went effective in May 2011 and has raised $3.7 billion in investor equity since inception, according to the most recent Stanger Market Pulse.

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