FS Energy & Power Fund (FSEP) is a non-traded business development company (BDC) designed to provide investors a combination of income, growth and diversification by investing primarily in the debt and income-oriented securities of private U.S. energy and power companies.

Investment objectives

Generate current income and long-term capital appreciation.

Investment strategy
FSEP seeks to generate current income and long-term capital appreciation by investing across the capital structure of private U.S. energy and power companiesThe fund can invest in a broad range of debt and equity securities, including senior secured debt, unsecured debt, common and preferred equity and warrants.

Senior secured investments are often backed by the hard assets critical to a company’s operations such as oil and gas reserves, pipelines and machinery. 

FSEP invests in an asset class that has historically exhibited low correlation to traditional investments, which may help diversify an investor’s existing portfolio. Asset allocation and diversification neither guarantee a profit nor eliminate the risk of loss of principal.


The FSEP difference

The fund offers a unique investment opportunity in the energy and power industry. FSEP offers access to:

Private companies

  • Approximately 98% of U.S. energy and power companies are private.

Expertise

  • Franklin Square Capital Partners is the largest manager of BDC assets, and its sub-adviser, GSO / Blackstone is one of the largest global managers of of senior secured loans and non-investment grade credit.

Income and growth

  • Potential for income and growth through investing across the capital structure of private companies and offering access to directly originated investments.

Portfolio diversification

  • There is a historically low correlation between the investment performance of debt and equity of private energy companies and traditional investments.

An investment in FSEP's common shares involves significant costs and investors should review the information in FSEP’s filings with the SEC regarding fees and expenses. 

Note: To invest in FSEP, an investor is required to have either: (i) a net worth (not including home, furnishings and personal automobiles) of at least $70,000 and an annual gross income of at least $70,000, or (ii) a net worth (not including home, furnishings and personal automobiles) of at least $250,000. Some states, including, but not limited to, Alabama, Idaho, Iowa, Kansas, Kentucky, Maine, Massachusetts, Nebraska, North Dakota, Ohio, Oklahoma, Oregon and Tennessee, impose heightened suitability standards.

The revenues, income (or losses) and valuations of energy and power companies can fluctuate suddenly and dramatically due to a number of environmental, regulatory, political and general market risks, which has historically impacted our financial performance including the offering price and may continue to do so in the future.

*The public offering price is subject to a sales load of up to 10.0% and offering expenses of up to 1.5%. The public offering price is subject to change.

**Annualized distribution rate is expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the current regular weekly cash distribution per share ($0.013625) without compounding), divided by the public offering price of $7.90. The annualized distribution rate shown may be rounded. For the year ended December 31, 2015, approximately 100% of FSEP’s distributions were funded though net investment income on a tax basis. The determination of the tax attributes of FSEP’s distributions is made annually at the end of FSEP’s fiscal year and a determination made on an interim basis may not be representative of the actual tax attributes of FSEP’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. No portion of FSEP’s distributions during the quarter ended March 31, 2016, was funded through an expense reimbursement from the fund’s sponsor. The payment of future distributions on FSEP’s common shares is subject to the discretion of FSEP’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. The distribution rate is not guaranteed, and may change or be discontinued at any time.

Corporate Governance | Shareholder Returns

FS2 Capital Partners, LLC | 201 Rouse Boulevard | Philadelphia, PA 19112
877-372-9880 | Member FINRA/SIPC

© 2016 FS Energy and Power Fund