FS Investments, the nation’s largest sponsor of business development companies, has closed two previously announced transactions where partnerships with KKR and EIG Global Energy Partners will provide investment advisory services to FS-sponsored funds.
The FS Investments and KKR partnership, FS/KKR Advisor LLC, creates the market’s largest business development company platform, with $18 billion in combined assets under management.
FS/KKR Advisor will serve as the investment adviser to six BDCs: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV), Corporate Capital Trust Inc. (NYSE: CCT) and Corporate Capital Trust II (CCT II).
KKR is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds.
All of the BDCs are able to participate in the same transactions alongside each other and KKR Credit’s institutional funds and accounts.
Additionally, a partnership jointly owned by FS Investments and EIG will now provide investment advisory services to FS Energy and Power Fund, an energy-focused BDC with $4.3 billion in assets under management. The partnership allows the fund to participate in the same transactions as EIG’s other institutional funds and accounts.
EIG Global Energy Partners specializes in private investments in energy and energy-related infrastructure on a global basis and has $17.7 billion under management as of December 31, 2017. With the close of the transaction, EIG will manage approximately $22 billion.
“EIG’s scale, global reach, and singular focus on energy investing will provide expanded opportunities to reposition the FSEP portfolio and enhance performance as we work toward a liquidity event for our investors,” said Michael Forman, chairman and chief executive officer of FS Investments.
FS Investments and GSO Capital Partners, Blackstone Group’s credit platform, have concluded their relationship with respect to all of FS Investments’ sponsored funds that were sub-advised by GSO.
FS Investments is headquartered in Philadelphia, with offices in New York City, Orlando, and Washington, DC.