FS Global Credit Opportunities Fund (the Fund) is an unlisted, closed-end fund that invests primarily in global credit, including loans, bonds and other credit instruments.

Investment objective

FS Global Credit Opportunities Fund opened to new investors in December 2013 and seeks to generate an attractive total return consisting of a high level of current income and capital appreciation, with a secondary objective of capital preservation.

 

 

Investment strategy

The Fund invests primarily in global corporate credit using, among other strategies, an event-driven, high conviction approach. FS Global Credit Opportunities Fund intends to invest globally, with a focus on North America and Western Europe, and in a broad range of debt and equity securities of both public and private companies, including:

  • Senior secured, second lien and unsecured loans
  • Secured and unsecured bonds
  • Preferred stock, common stock and structured products

Event driven

In order to create value for investors, the Fund seeks to benefit primarily from specific corporate events such as mergers, corporate reorganizations or debt maturities that are expected to impact the value of a company’s securities. The Fund intends to take advantage of dislocations that arise in the markets due to an impending event for which the market’s apparent expectation of value differs substantially from the view of its managers.

Event-driven investing depends much more heavily on the managers’ ability to successfully predict the outcomes of these events than on underlying macroeconomic fundamentals, such as the level of interest rates or gross domestic product. As a result, successful event-driven strategies may offer substantial diversification benefits and the ability to generate performance in uncertain market environments. The Fund’s investment strategy revolves around a thorough due diligence process and is based on the belief that a deep understanding of companies and the industries in which they operate is critical to generating positive income and returns.

The investment managers select companies they believe offer the best opportunities for creating potential return. Below investment grade instruments (commonly referred to as “high-yield” securities or “junk bonds”) may have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Investments in high yield securities should be considered speculative.

Note: To invest in FS Global Credit Opportunities Fund—A or FS Global Credit Opportunities Fund—D, 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.

*The public offering price of FS Global Credit Opportunities Fund—A’s (“Fund—A”) common shares is subject to a sales load of up to 8.0% of Fund—A’s public offering price per share (consisting of selling commissions of up to 6.0% and dealer manager fees of up to 2.0% of Fund—A’s public offering price per share) and offering expenses of up to 1.5% of the gross proceeds raised in Fund—A’s public offering, after payment of selling commissions and dealer manager fees. The public offering price of FS Global Credit Opportunities Fund—D’s (“Fund—D” and, together with Fund—A, the “Companies”) common shares is subject to a dealer manager fee of up to 2.0% of Fund—D’s public offering price per share, and offering expenses of up to 1.5% of the gross proceeds raised in Fund—D’s public offering, after payment of dealer manager fees. The public offering prices are subject to change.

**The Companies’ annualized distribution rates are expressed as percentages equal to the projected annualized distribution amounts (which is calculated by annualizing the applicable Company’s regular weekly cash distribution per share as of the date indicated above without compounding), divided by the applicable Company’s public offering price per share as of the date indicated above. The Companies’ previous distributions 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 their affiliate, Franklin Square Holdings, and their future distributions may be funded from such waivers and reimbursements. Significant portions of these distributions were not based on the Companies’ investment performance and such waivers and reimbursements by Franklin Square Holdings may not continue in the future.

Corporate Governance

FS2 Capital Partners, LLC | 2929 Arch Street, Suite 675 | Philadelphia, PA 19104
877-372-9880 |Member FINRA/SIPC

© 2015 FS Global Credit Opportunities Fund