FS Energy & Power Fund Adds Nearly $900 Million in Shares

PHILADELPHIA, March 19, 2015 /PRNewswire/ -- Franklin Square Capital Partners, the largest manager of business development companies (BDCs), announced that its energy-focused BDC, FS Energy & Power Fund (FSEP), will seek to raise nearly $900 million in additional shares through a follow-on offering.

FSEP concluded its two previously registered offerings, which totaled over $3 billion. The pace of the fund's capital raise recently accelerated as dynamics in the energy market are creating attractive opportunities for FSEP to finance private U.S. energy companies.

"The follow-on offering will provide FSEP ample liquidity to take advantage of our robust pipeline of direct investment opportunities in strong companies," said Michael C. Forman, Chairman and Chief Executive Officer of FSEP. "Today's market conditions make this a particularly good time for us to negotiate better yields and terms that can enhance returns for our investors."

FSEP invests primarily in the debt and income-oriented equity securities of private U.S. energy and power companies. The fund raised approximately $1.4 billion in 2014, with $333 million attributable to the fourth quarter. During 2014, it committed approximately $1.2 billion to directly originated investments, with $635 million attributable to the fourth quarter.

About FSEP
FSEP is a publicly registered, non-traded BDC sponsored by Franklin Square. FSEP focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. FSEP's investment objectives are to generate current income and long-term capital appreciation. FSEP is managed by FS Investment Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO. GSO, with approximately $72.9 billion in assets under management as of December 31, 2014, is the credit platform of Blackstone. For more information, please visit www.franklinsquare.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. Franklin Square managed approximately $14.9 billion in assets as of December 31, 2014. Franklin Square distributes its non-traded funds through its affiliated broker-dealer, FS² Capital Partners, LLC. For more information, please visit www.franklinsquare.com.

Forward-Looking Statements
This announcement may contain certain forward-looking statements, including statements with regard to future performance or operations of FSEP.  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 FSEP makes with the SEC. FSEP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Important Disclosures
Individual investors and endowments may have different investment horizons, liquidity needs and risk tolerances. In addition, fees that may be incurred by an investor in a fund sponsored by Franklin Square may be different than fees incurred by an endowment investing in similar assets as those in which the funds invest.

SOURCE FS Energy & Power Fund

Related Links

http://www.franklinsquare.com