Franklin Square has announced that it will be listing its first nontraded BDC, FS Investment Corp., on the NYSE. The fund has over $4.6 billion in assets under management
Franklin Square has announced that it will be listing its first nontraded BDC, FS Investment Corp., on the New York Stock Exchange under the symbol "FSIC". It is expected to list in April of 2014.
FSIC was the first nontraded business development company (BDC) product in existence. Launched in 2009, FS Investment Corp. is a partnership between alternatives powerhouse, Blackstone, through its credit investment arm GSO Capital Partners and Franklin Square Capital Partners. The fund invests in primarily senior debt of privately owned companies.
At listing, FSIC will be one of the largest traded BDCs with over $4.6 billion in assets under management and is invested in over 180 companies as of September 30, 2013. Franklin Square is the largest BDC manager with over $9 billion in assets under management across its funds.
This is a positive event for an industry that is only five years old. There are currently nine funds raising capital, with FSIC being the only fund closed to new investors. In a partnership between Blue Vault Partners and Blue Springs Capital, you can access in-depth research on nontraded BDCs. According to the Nontraded BDC Industry Review report, the average return for BDCs for the three quarters ending September 30, 2013 was 8.5% (not annualized). The report can be found at http://www.bluevaultpartners.com/Store.aspx.
About Blue Springs Capital, LLC
Blue Springs Capital is a private equity sponsor and consultant to private investment and fund formation ventures. Blue Springs seeks to primarily invest in lower middle market companies. Additionally, Blue Springs conducts consulting projects for fund formation, capital raising, investment research and businesses seeking capital. For more information, visit www.bluespringscapital.com.
About Blue Vault Partners, LLC
Atlanta-based Blue Vault Partners, LLC offers quarterly nontraded REIT reports and annual research subscriptions for financial advisors, broker/dealers, REIT sponsors and others serving the industry. BDC Review, LLC is a subsidiary of Blue Vault Partners, LLC. For more information about Blue Vault Partners' research and reporting services, call 877-256-2304 or visit www.bluevaultpartners.com.