FS/KKR Advisor LLC, a partnership between FS Investments and KKR Credit that serves as the investment adviser to business development companies with approximately $17 billion in assets under management, has announced several senior leadership changes in light of the potential merger of four non-traded BDCs advised by the firm.
FS/KKR announced plans in June to merge four non-traded BDCs including FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV, and Corporate Capital Trust II. The combined company, will remain advised by FS/KKR, is expected to have more than $9 billion in assets and could be listed on the New York Stock Exchange in the fourth quarter of 2019.
Steven Lilly, who joined FS Investments as a managing director, will assume the role of chief financial officer of certain BDCs advised by FS/KKR in mid-November. In his role, Lilly will help lead and oversee the finance, investor relations and capital markets functions at FS KKR Capital Corp. (NYSE: FSK), FS Investment Corporation II, FS Investment Corporation III, and FS Investment Corporation IV (the BDCs).
“Steven’s strong financial services background and BDC industry knowledge will be invaluable to the BDCs as we continue to pursue our strategic initiatives,” said Michael Forman, chairman and chief executive officer of FS Investments. “We look forward to Steven’s contributions to the franchise as we work to complete the mergers and listing of our non-traded BDCs and deliver long-term shareholder value.”
Previously, Lilly spent 13 years as CFO of Triangle Capital Corporation, a publicly traded BDC which was sold to Benefit Street Partners and Barings LLC in 2018. At Triangle, he built the company’s financial and operating infrastructure, oversaw listings on the Nasdaq and the New York Stock Exchange in 2007 and 2010, respectively, and led all corporate M&A and strategic processes, the company said.
Effective with Lilly’s appointment, William Goebel, who currently serves as the BDCs’ chief financial officer, will become chief accounting officer of the BDCs’.
In addition, Daniel Pietrzak and Brian Gerson have been appointed co-presidents of the BDCs. Pietrzak is co-head of private credit at KKR and will continue to serve as chief investment officer of the BDCs, a position he has held since April 2018.
Gerson is head of private credit at FS Investments and has served on FS/KKR’s Investment Committee since April 2018.
In connection with Gerson and Pietrzak’s appointment, Todd Builione has stepped down as president of the BDCs, but will continue to serve as president of FS/KKR and as a director for each of the BDCs.
Finally, Drew O’Toole and Ryan Wilson have been appointed co-chief operating officers of the BDCs. O’Toole is an executive director of FS Investments, and Wilson is a director of KKR Credit and the chief operating officer of KKR Private Credit.
The BDCs managed by FS/KKR include FS KKR Capital Corp., FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and Corporate Capital Trust II.