FS Investments Files Energy-Related Interval Fund
October 28, 2016 | Blue Vault
On October 25, 2016 FS Investments filed a prospectus to the SEC for a new energy interval fund. The fund, named FS Energy Total Return Fund, is anticipated to be sub-advised by Magnetar Capital. Magnetar manages an estimated $13.5 billion in assets directed in alternative strategies. The filing is for a maximum offering of $2 billion.
The interval fund structure will allow limited liquidity of at least 5% per quarter through share repurchases. Additionally the fund will have three share classes: A, C, and I. The Class A shares will have a maximum upfront sales commission of 5.00% with a 0.75% dealer manager fee. The Class C shares will be offered at net asset value (NAV) with an annual ongoing trail fee to the financial advisor of 0.75% and a 0.25% shareholder servicing fee. The Class I shares will also be offered at NAV with no ongoing shareholder servicing fees, as Class I shares are typically reserved for RIAs, wrap account clients or institutional investors.
The fund plans to invest at least 80.00% of its assets in energy and natural resource opportunities. The company will target equity and debt securities of natural resource companies primarily through publicly traded companies, private partnerships and royalty trusts.
Jared Schneider, Managing Partner of Blue Vault states, “FS Investments has a history of successfully investing in the energy sector even difficult markets. This interval fund is a continuation of the evolution in the alternative investments industry.”