Chairman and CEO of Franklin Square Capital Partners (FSCP), Michael Forman, recently talked yield with Deirdre Bolton, host of Risk & Reward, a talk show on Fox Business News.
Franklin Square Capital Partners manages about $15 billion across several business development companies (BDC) including one New York Stock Exchange listed BDC and several non-traded BDCs. According to Forman, FSCP represents about 23 percent of the BDC market.
During the three minute interview, Bolton and Forman talk yield, including the 8.5 percent yield generated by FSCP’s publicly traded FS Investment Corporation (NYSE: FSIC).
Bolton commented, “There’s people doing…dodgy things to trying to get that [8.5 percent yield] and this is relatively safe, [and] stable.”
Forman says FSCP generates yield for its investors by investing in middle market companies with good earnings and results.
As Bolton puts it, FSCP’s portfolio companies are looking for cash to grow their businesses.
“We’re a lender, so think of us as a bank. Think of us as a middle market lender lending to American companies that are building jobs and prospering,” says Forman.
He adds, “We benefit because they pay interest on the loans and then we make those distributions to our investors.”
The interview wraps up with Bolton suggesting the BDC space will continue to grow.
Forman agrees and says, “We are actually in the beginning of a really nice run for BDCs. I think you’ll see the assets continue to grow.”
To watch the entire three minute interview, click here.
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