FS Investment Corp (NYSE:FSIC), a major alternative investment manager with assets under management of more than $20 billion, reported that it has agreed to establish new partnerships with EIG Global Energy Partners and KKR to manage its business development company platform. It also reported the engagement of a liquid credit portfolio manager who will look after one of FS’ closed-end funds.
Michael Forman, the CEO and Chairman of FS Investment, expressed that as the FS funds advisor, their objective has always been to establish long-term value for their shareholders by matching attractive investment plans with best-in-class asset managers and strategic fund structures. Over the last year, they have introduced four new plans, each with distinct sub-advisors, to capture exciting market prospects with the managers best placed to take benefit of them. Recent announcements further exhibit this approach, and they consider they are well-positioned to enhance long-term value for investors in the respective funds.
To date, FS Investment has engaged GSO Capital Partners to sub-advice the funds affected by these announcements. GSO and FS have finalized a deal to conclude their association and will work together to confirm a smooth transition.
The CEO of FS Investment added that while their association with GSO has resulted in notable for their borrowers and shareholders, they have concluded that current market need a change in their management approach to the funds. They thank GSO for its services, and are delighted they have reached a deal that ensures a smooth transition and comprises restrictions on GSO that protects investors.
In another press release, FS reported that it is associating with KKR to establish an $18 billion middle market business development company platform. The company has entered into a deal to form an association with KKR to offer investment advisory services to four business development companies presently managed by FS Investment and a BDC currently seen by KKR.