Newly committed capital was provided by four BDCs managed by affiliates of Franklin Square and sub-advised by GSO Capital Partners LP (GSO) or its affiliate: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III) and FS Energy and Power Fund (FSEP). Franklin Square is the largest manager of BDCs.
Franklin Square’s directly originated deals, which are unique to its BDCs and not typically accessible elsewhere, included investments in the following companies in the first quarter:
Swift Worldwide Resources
FSIC II, FSIC III and FSEP provided a new senior secured term loan to Swift Worldwide Resources, a Houston, TX-headquartered leading provider of contract personnel resources to the energy sector. The new loan refinances Franklin Square’s prior senior secured investment in the company and supports the merger of Swift with Air Energi Group, another leading provider of contract personnel resources to the energy, process and infrastructure industries. Following the merger, the new entity is financially backed by Wellspring Capital Management LLC, a New York, NY-headquartered private equity investment firm, and by LGV Capital Limited, a London, UK-headquartered private equity investment firm.
Industry City TI Lessor, L.P. (dba: the Brooklyn Nets)
FSIC and FSIC II upsized their commitment to the Brooklyn Nets, the Brooklyn, NY-based National Basketball Association franchise. The upsized commitment supports the team’s construction of a 70,000 square foot state-of-the-art practice facility in the Industry City section of Brooklyn, NY.
FSIC and FSIC II Successfully Exit Cosentry
In addition to new commitments made during the first quarter, FSIC and FSIC II realized their collective senior secured debt and preferred equity investments in Cosentry, a leading provider of data center services across the Midwest United States. FSIC and FSIC II’s collective investments were paid off as a result of TierPoint Capital’s acquisition of the company. In connection with the early repayment, FSIC and FSIC II earned a prepayment fee in addition to the return of their principal.
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. As of December 31, 2015, the firm managed approximately $16.8 billion in total assets, including $15.5 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
For information about Franklin Square’s funds, visit www.franklinsquare.com.
Franklin Square Media Team
Senior Vice President,
Investor Relations & Capital Markets
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