Holdings by investment 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 27%
  • 27
  • #101D39
  • Senior secured loans – second lien 31%
  • 31
  • #424E6D
  • Senior secured bonds 11%
  • 11
  • #264487
  • Subordinated debt 18%
  • 18
  • #6976AB
  • Equity/other 13%
  • 13
  • #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 56%
  • 56
  • #163A60
  • Service & equipment 20%
  • 20
  • #127EB8
  • Power 16%
  • 16
  • #5498C8
  • Midstream 7%
  • 7
  • #93B8D7
  • Downstream 1%
  • 1
  • #A3CD66
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Holdings by geography2

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

FSEP Map Q1


Global holdings include

Canada, Germany 

  1. As of March 31, 216. 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.

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.

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