FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


FS Investments Closes Nearly $1B of Mid-Market Commitments in Q3/2016

December 02, 2016, 07:16 AM
Filed Under: Industry News

FS Investments, a leading alternative investment manager, announced that its business development company (BDC) direct lending platform committed approximately $988 million in senior secured loans and other debt and equity financing to middle market companies in the third quarter of 2016, bringing its year-to-date total originations to more than $2.2 billion. New directly originated investments during the quarter were made in support of nine portfolio companies headquartered in seven U.S. states.

"Our ability to customize financing solutions to a company's specific needs delivers a unique value to those businesses and, ultimately, our investors," said Michael C. Forman, Chairman and Chief Executive Officer of FS Investments. "In several cases, we upsized our financing for existing portfolio companies, where the added capital helps those companies expand their operations."

Newly committed capital was provided by five BDCs managed by affiliates of FS Investments and sub-advised by GSO Capital Partners LP (GSO) or its affiliate: FS Investment Corporation, FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and FS Energy and Power Fund (FSEP). FS Investments is the largest manager of BDCs.

FS Investments' directly originated transactions, which are unique to its BDCs and not typically accessible elsewhere, included investments in the following companies in the third quarter:

North Haven Cadence Buyer, Inc. (dba:Cadence Education)
FSIC, FSIC II, FSIC III and FSIC IV provided a new senior secured unitranche and equity commitment to Cadence Education, a Scottsdale, AZ-based provider of private pre-kindergarten and elementary childcare and education services. The company is among the largest providers of private childcare and education services in the country. The new financing supported Morgan Stanley Capital Partners' acquisition of the company from Audax Partners.

Transplace Holdings, Inc.
FSIC, FSIC II and FSIC III upsized their senior secured unitranche commitment to Transplace Holdings, a Frisco, TX-based logistics and transportation management company. The incremental commitment financed a strategic acquisition. Transplace is a portfolio company of Greenbriar Equity Group.

FS Investments is a leading asset manager that designs alternative investments to help institutional, advisory and individual investors build better portfolios. Its solutions provide access to alternative asset classes and top managers through a spectrum of structures, including business development companies, a closed-end credit fund and an operating company. The firm is dedicated to setting industry standards for investor-centric service, education and transparency.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.