FS Global Credit Opportunities 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 can 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%, 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 aggregate 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 aggregate proceeds raised in Fund—D’s public offering, after payment of dealer manager fees. Amounts may be rounded.

**The Companies' annualized distribution rates are expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the applicable Company’s current regular weekly cash distribution per share without compounding), divided by the applicable Company’s current public offering price per share as of the date shown. The annualized distribution rates shown have been rounded. To date, these rates have not included any distributions paid from offering proceeds or borrowings; although a portion of the Companies’ distributions to shareholders may be deemed to constitute a return of capital for tax purposes due to the character of the amounts received by FS Global Credit Opportunities Fund from its portfolio companies. Any such return of capital will not reduce the amounts available to FS Global Credit Opportunities Fund for investments. The Companies’ previous distributions were funded (and future distributions may be 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 the Companies’ and FS Global Credit Opportunities Fund’s affiliate, Franklin Square Holdings, L.P. See the Companies’ filings with the SEC for additional information.


Corporate Governance

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

FS2 Capital Partners, LLC (FS2 Capital), the dealer manager for the public offering, is an affiliate of the investment adviser and serves or has served as the dealer manager for the public offerings of shares by other entities sponsored by Franklin Square Capital Partners. These relationships may create conflicts in connection with FS2 Capital’s due diligence obligations under the federal securities laws. FS2 Capital is entitled to compensation in connection with this offering, including receiving selling commissions (which are generally re-allowed to selling broker dealers) and a dealer manager fee based on the gross offering proceeds of shares sold in the offering. FS2 Capital may also be reimbursed for accountable due diligence expenses based on the gross offering proceeds of shares sold in the offering. In addition, the investment adviser and its affiliates may face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments, which they will attempt to resolve in a fair and equitable manner.

© FS Global Credit Opportunities Fund