Asset managers FS Investments and Portfolio Advisors to merge

• The combined company will have over $73 billion in assets under management
• Portfolio Advisors was founded in 1994 while FS Investments was founded in 2007
• UBS Investment Bank served as lead financial advisor to FS Investments on the transaction with Goldman Sachs and Mizuho Americas also providing financial advice.

Philadelphia-based asset manager FS Investments and Portfolio Advisors, a Darien, Connecticut-based middle-market private asset management specialist, have agreed to merge. The combined company will have over $73 billion in assets under management.

On the deal, Michael Forman, chairman and CEO of FS Investments, said in a statement, “I am thrilled to join forces with Portfolio Advisors and applaud our team, led by our Co-Presidents, Enrico Gaglioti and Mike Kelly, for identifying an ideal strategic partner. This transaction is transformative for FS Investments, accelerating our efforts to broaden our institutional client base, diversify our offerings to include growth-oriented products such as private equity, and deepen our in-house investment capabilities. This combination also enhances our financial profile, diversifies our revenue streams and positions us to invest in further growth.”

Portfolio Advisors was founded in 1994 while FS Investments was founded in 2007.

The transaction is expected to close in the first half of 2023.

UBS Investment Bank served as lead financial advisor to FS Investments on the transaction while Cravath, Swaine & Moore LLP served as primary legal advisor, with Dechert LLP serving as special regulatory counsel. Goldman Sachs and Mizuho Americas also served as financial advisors to FS Investments. Moelis & Company LLC served as financial advisor to Portfolio Advisors while Simpson Thacher & Bartlett LLP served as legal advisor, with Schulte Roth & Zabel LLP serving as special regulatory counsel.