FS Investments (FS) and EIG Global Energy Partners (EIG) closed a transaction today, allowing EIG to manage FS Energy and Power Fund (FSEP). According to the company’s press release, FSEP will be the largest energy-focused business development company (BDC) in the marketplace with $4.3 billion in assets under management.
“We are excited to enter the next phase of our partnership with EIG and continue working closely with their team,” said Michael Forman, chairman and CEO of FS. “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.”
Effective today, a partnership jointly owned by FS and EIG now provides investment advisory services to FSEP, which is able to participate in the same transactions alongside EIG’s other institutional funds and accounts.
“With the close of this transaction, EIG will manage approximately $22 billion, which provides scale to offer differentiated financing solutions to global energy and infrastructure companies and projects,” said William Sonneborn, president of EIG.
FS Investments and GSO Capital Partners (GSO) have concluded their relationship with respect to all of FS Investments’ sponsored funds that were sub-advised by GSO.
FS and KKR form the largest BDC platform
FS Investments and KKR also closed a transaction today – according to FS, this closing creates the market’s largest BDC platform, with $18 billion in combined assets under management.
A new partnership, FS/KKR Advisor, LLC, will serve as the investment adviser to six BDCs:
- FS Investment Corporation (ticker: FSIC),
- FS Investment Corporation II (FSIC II),
- FS Investment Corporation III (FSIC III),
- FS Investment Corporation IV (FSIC IV),
- Corporate Capital Trust, Inc. (ticker: CCT) and
- Corporate Capital Trust II (CCT II).
FS said that all of the BDCs are able to participate in the same transactions alongside each other and KKR Credit’s institutional funds and accounts.
“We have been working closely with the KKR team over the past several months to prepare for this transition and are now looking forward to realizing the full benefits of our combined platform for investors,” added Forman.
