FS Investment Corp., a BDC that invests in debt securities of private companies, said it committed over $200 million in July. Deals include: a $30 million loan to CoSentry.net, which is backed by TA Associates; a $66.4 million loan to Tri-Northern Acquisition, which is a portfolio company of the Audax Group; and, $6.1 million in debt and equity to VPG Group Holdings, which is a portfolio company of Insight Equity Holdings. FSIC is an investment fund sponsored by Franklin Square Capital Partners.
PHILADELPHIA, Aug. 27, 2013 /PRNewswire/ — FS Investment Corporation (“FSIC”), a business development company focused primarily on investing in the debt securities of private U.S. companies, announced today that it committed over $200 million toward proprietary investments in middle market companies during the month of July.
FSIC made proprietary commitments to four portfolio companies, which included senior secured loan, subordinated debt and equity investments. In connection with the terms negotiated for select commitments, FSIC received upfront fees and other economic benefits. The originations in which FSIC invested during July include the following:
- $30 million senior secured loan to CoSentry.Net, LLC, a leading provider of compliance ready data center solutions and professional technical services and a portfolio company of TA Associates;
- $66.4 million senior secured loan to Tri-Northern Acquisition, Inc., the largest independent distributor of low-voltage electronic security products in North America and a portfolio company of Audax Group; and
- $6.1 million subordinated debt and equity follow-on investment to VPG Group Holdings LLC, a leading metal processing and recycling company and a portfolio company of Insight Equity Holdings, LLC.
“We are pleased to invest in a growing number of new proprietary originations and to opportunistically increase our investments to existing companies within our portfolio. We expect proprietary investments to make up a larger portion of our portfolio going forward and believe that growing our direct lending business will help position the fund for a potential successful listing on a national securities exchange,” said Michael C. Forman, Chairman and Chief Executive Officer of FSIC.
About FS Investment Corporation
FSIC, an investment fund sponsored by Franklin Square Capital Partners (“Franklin Square”), is a publicly registered, non-traded business development company (“BDC”). A BDC such as FSIC is a type of investment fund that enables investors, including non-accredited investors (subject to certain state-specific suitability standards), to access the private debt asset class. FSIC focuses primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for its investors. FSIC is managed by FB Income Advisor, LLC and is sub-advised by GSO / Blackstone Debt Funds Management LLC (“GDFM”), an affiliate of GSO Capital Partners LP (“GSO”). GSO, with approximately $62.2 billion in assets under management as of June 30, 2013, is the credit platform of The Blackstone Group L.P. For more information, please visit www.fsinvestmentcorp.com.
About Franklin Square
Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. The firm currently manages three funds with approximately $7.9 billion* in assets.
Forbes Magazine ranked Franklin Square 13th on its 2013 list of America’s Most Promising Companies. Franklin Square distributes its funds through its affiliated broker-dealer, FS2 Capital Partners, LLC. For more information, please visit www.franklinsquare.com.
* Assets under management as of June 30, 2013.
This announcement may contain certain forward-looking statements, including statements with regard to the future performance of FSIC. Words such as “believes,” “expects,” “projects” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings FSIC makes with the Securities and Exchange Commission. FSIC does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.