FS Investments and Portfolio Advisors Combine to Form $75 Billion Alternative Asset Manager
FS Investments, a sponsor of alternative investment products, and Portfolio Advisors, a global middle-market private asset specialist, announced they have closed a transaction to combine their firms and create a $75 billion alternative asset manager.
As The DI Wire previously reported, the firms entered the agreement earlier this year.
“I am delighted to complete our combination with Portfolio Advisors and welcome our new colleagues,” said Michael Forman, chairman and chief executive officer of FS Investments. “I look forward to bringing Portfolio Advisors’ investment expertise across private equity, credit and real estate to our platform. As a combined firm, we will be able to offer institutional and individual investors access to a truly diversified suite of alternative asset classes and strategies managed by our best-in-class investment teams and partners.”
The combined firm also announced its first joint initiative to grow the FS MVP Private Markets Fund, an SEC-registered private equity fund focused on the U.S. middle market. With approximately $600 million in assets as of May 31, 2023, the fund offers access to a range of sponsors through a portfolio built primarily on direct and secondary investments.
Forman added, “Our wealth management clients have long expressed interest in greater access to private equity and other private markets solutions. We are pleased to bring the FS MVP Private Markets Fund, a diversified solution that seeks to deliver the best of what Portfolio Advisors offers, to our clients and the broader market. We think funds like FS MVP will be the next significant growth area for wealth managers, providing both return and diversification potential for client portfolios. We see many more growth opportunities across the Portfolio Advisors platform and look forward to delivering them to our clients over time.”
FS says Michael Forman will serve as chairman and chief executive officer of the combined firm, which will be led by a management committee with representatives from both FS Investments and Portfolio Advisors. Its members will include Forman, Enrico Gaglioti and Mike Kelly, co-presidents of FS Investments, and Brooks Lindberg and Elizabeth Campbell, managing directors at Portfolio Advisors.
FS Investments was founded in 2007 and manages a suite of alternative strategies including private credit, real estate credit, opportunistic credit, structured credit, liquid credit and liquid alternatives across a variety of fund structures including business development companies, non-traded REITs and interval, closed-end and mutual funds.
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