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.
Generate current income and long-term capital appreciation.
FSEP seeks to generate current income and long-term capital appreciation by investing across the capital structure of private U.S. energy and power companies. The 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:
- Approximately 98% of U.S. energy and power companies are private.
- 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.
- There is a historically low correlation between the investment performance of debt and equity of private energy companies and traditional investments.