FS KKR Capital Corp. (FSK) is a leading global investment management corporation, specializing in providing customized credit solutions to private middle market U.S. companies. The Philadelphia-based company operates as a non-diversified, closed-end management investment business, incorporated in the state of Maryland.
Established in 2007 as FS Investment Corporation, and rebranded to FS KKR Capital Corp. in 2018, FSK is externally managed by FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit. This blend of FS Investments, an alternate asset manager and KKR Credit, a credit investment specialist, ensures a sophisticated approach towards their credit-based strategies, resulting in diversified portfolios and positive risk-adjusted returns.
FSK pursues opportunities by investing primarily in the senior secured loans and subordinated debt of private middle-market companies, seeking attractive risk-reward to generate both income and long-term capital growth. With a deliberate focus on middle-market companies, FSK has successfully carved its niche in the financial markets.
As of the end of 2021, FSK’s portfolio included investments in over 130 companies, spanning multiple industries, and representing approximately $15 billion in total invested assets. The broad diversification not only offers a solid base for risk mitigation but also augments the possibility of capturing potential market opportunities.
FSK prides itself on its disciplined risk management and deeply experienced leadership, with co-chairmen and co-CEOs Michael Forman and Daniel Pietrzak at the helm. The company also boasts an accomplished advisory board, led by Chairman Bill Sonneborn. The team shares decades of experience in business, finance, and investment strategies, fostering long-term growth and stability.
As with any investment opportunity, investing in FSK bears risks, such as economic recession, market volatility and company-specific risks, but historial performance shows it has weathered these challenges with resilience.
The company strives to add value to its portfolio companies by offering creative and flexible financing solutions, somethings it's uniquely positioned to do because of the partnership structure with FS Investments and KKR Credit. This allows FSK to offer investors the potential for high levels of income and capital appreciation, making it a viable choice for long-term investors cruising for income and capital appreciation potential.
As a reputable name in financial markets, FSK continues to strengthen its position by maintaining its focus on providing credit solutions to middle-market companies, symbolizing an exceptional amalgamation of strong leadership, robust portfolio, and disciplined investment strategies.