Holdings by invesment type1

FSEP’s investments are primarily concentrated in senior and subordinated debt securities of private U.S. energy and power companies that have a strong asset base to enhance downside protection. FSEP also makes select equity investments in energy companies that meet the Fund’s investment objectives of current income generation and long-term capital appreciation.

This approach can create a balance between the capital preservation of debt and the upside potential of equity investments. FSEP’s allocations may change over time to take advantage of market conditions.

 

  • Senior secured loans – first lien 30%
  • 30
  • #101D39
  • Senior secured loans – second lien 30%
  • 30
  • #424E6D
  • Senior secured bonds 11%
  • 11
  • #264487
  • Subordinated debt 19%
  • 19
  • #6976AB
  • Equity/other 10%
  • 10
  • #959BC2
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Holdings by energy sub-sector1

FSEP seeks to diversify its holdings across the energy industry. By diversifying its holdings across various energy sub-sectors, the Fund seeks to be more balanced and diversified compared to other energy-focused funds that are more limited in their investment strategy or invest in only one energy sub‑sector.

FSEP’s current portfolio is weighted toward “Upstream” and “Service & Equipment” investments. Upstream energy companies find, develop and extract energy resources. Upstream companies are set to benefit directly from growing worldwide energy demand and potentially present many attractive investment opportunities as companies look to expand natural gas and oil production. Service & Equipment companies supply specialized services and materials to aid in every step of the energy life cycle. This weighting may shift as market conditions and investment opportunities change over time.

 

  • Upstream 55%
  • 55
  • #163A60
  • Service & equipment 21%
  • 21
  • #127EB8
  • Power 17%
  • 17
  • #5498C8
  • Midstream 7%
  • 7
  • #93B8D7
  • Downstream <1%
  • 0
  • #A3CD66
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Holdings by geography2

FS Energy & Power Fund holdings across the U.S.

FSEP Holdings Geography 12-15-15


Global holdings include

Canada, Germany 

  1. As of December 31, 2015. Calculated as a percentage of fair value.
  2. Location represents the state or country in which the portfolio company is headquartered or has a significant operating presence.

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, New Jersey, New Mexico, 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.

Shareholder Returns

*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. FSEP’s total expenses as a percentage of average net assets attributable to common shares was 5.55% for the year ended December 31, 2015.

**The annualized distribution rate is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular weekly cash distribution per share as of the date indicated above without compounding), divided by the public offering price per share as of the date indicated above. The annualized distribution rate shown may be rounded. FSEP’s previous distributions to shareholders were funded in significant part by the reimbursement of certain expenses, including through the waiver of certain investment advisory fees, that are subject to repayment to its affiliate, Franklin Square Holdings, and its future distributions may be funded from such waivers and reimbursements. Significant portions of these distributions were not based on FSEP’s investment performance and such waivers and reimbursements by Franklin Square Holdings may not continue in the future. As of December 31, 2013, no further amounts remained subject to repayment by FSEP to Franklin Square Holdings. See FSEP’s filings with the SEC for additional information.

Corporate Governance

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

© 2016 FS Energy and Power Fund