FS Credit Income Fund Announces Significant Changes to Fees and More Following Sub-Adviser Resignation

FS Credit Income Fund, an alternative credit strategy sponsored by FS Investments, announced that it has lowered its management fee from 1.6% of gross assets to 1% of gross assets, effective Dec. 1, 2024. The fund stated, as well, that from Dec. 1, 2024, through Dec. 31, 2025, the fund will waive the management fee.

Additionally, the fund said that its board of trustees has approved an increase of the upcoming November 2024 quarterly repurchase offer from 5% to up to 25% of the fund’s outstanding shares. According to the fund, the shareholders will be notified in writing about the repurchase offer, including how they may request repurchase from the fund, along with the repurchase offer’s ending date.

Finally, according to the fund, FS Investments will invest $25 million into the fund plus an additional $25 million through fund affiliates. These amounts are expected to be invested in the fund over time, beginning in the first quarter of 2025 and may be used for investments, redemption requests, and other purposes.

These announcements come in connection with the resignation of the fund’s sub-adviser, GoldenTree Asset Management Credit Advisor LLC. FS Credit Income Advisor will continue to serve as the fund’s investment adviser.

According to the fund’s website, FS Credit Income Fund is an opportunistic, alternative credit solution that seeks to provide attractive total returns with an attractive level of income by dynamically investing across public and private credit. As of Oct. 24, the fund’s daily NAV was $12.56 for Class I shares.

FS Investments manages more than $82 billion in assets, approximately $29 billion of which sits on its credit platform.

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