FS Investment Corporation II (FSIC II) is a business development company (BDC) designed to provide a high level of current income. The fund primarily invests in floating rate, senior secured loans of private U.S. companies.

Investment objective

FSIC II is a publicly registered, non-traded BDC and closed to new investors in March 2014 after raising over $3 billion in equity capital. A BDC allows individual investors, at low investment minimums, to invest in the same type of private companies as do large institutions, endowments and wealthy individuals. FSIC II seeks to generate current income and, to a lesser extent, long-term capital appreciation. Learn more about BDCs by watching our video: 

 

Investment strategy

FSIC II invests primarily in floating rate, senior secured loans of private U.S. companies and has a flexible investment platform, which diversifies its holdings across multiple industries and geographic locations. FSIC II seeks to invest in a broadly diversified portfolio of companies with:

  • Leading, defensible market positions
  • Positive cash flows
  • Proven management teams
  • Private equity sponsorship
  • Viable exit strategies

While diversification and asset allocation alone cannot guarantee a profit or eliminate the possibility of a loss of principal, this flexibility may help FSIC II provide investors with income and, to a lesser extent, growth while maintaining a focus on capital preservation.

 

    * Current 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 without compounding), divided by the current public offering price per share. The current annualized distribution rate shown may be rounded. The Fund’s previous distributions to stockholders 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 Fund’s affiliate, Franklin Square Holdings. See the Fund’s filings with the SEC for additional information. The payment of future distributions on FSIC II’s common stock is subject to the discretion of FSIC II's board of directors and applicable legal restrictions, and therefore, there can be no assurance as to the amount or timing of any such future distributions.
 

Corporate Governance

© FS Investment Corporation II