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

Investment objectives

FSIC III is a publicly registered, non-traded BDC and seeks to generate current income and, to a lesser extent, long-term capital appreciation. 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 III is intended for investors who want current income, to diversify their fixed income portfolio for a rising interest rate environment and a defensive investment approach focused on long-term performance and principal protection.

Access an Income Alternative

FSIC III: Investing in an income alternative

Investment strategy

FSIC III has a flexible investment platform, diversifying its holdings across multiple industries and geographic locations and seeks to meet its investment objectives by:

  • Identifying directly originated investment opportunities through the direct lending platform of GSO / Blackstone;

  • Employing a defensive investment approach focused on long-term credit performance and principal protection;

  • Focusing primarily on debt investments in a broad array of private U.S. companies, including middle market companies, which FSIC III defines as having  annual revenues of approximately $50 million to $2.5 billion at the time of investment;

  • Investing primarily in established, stable enterprises with positive cash flows; and

  • Maintaining rigorous portfolio monitoring, in an attempt to anticipate and pre-empt negative credit events within our portfolio.

Note: To invest in FSIC III, 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, Kansas, Kentucky, Maine, Massachusetts, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon and Tennessee, impose heightened suitability standards.

FSIC III Stockholder Returns

*The net investment amount is the institutional offering price excluding estimated offering expenses of 1.5%.

**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, without compounding), divided by the net investment amount per share as of the date indicated. The annualized distribution rate shown may be rounded. For the quarter ended March 31, 2016, 100% of FSIC III’s distributions were funded through net investment income. The determination of the tax attributes of FSIC III’s distributions is made annually at the end of FSIC III’s fiscal year and a determination made on an interim basis may not be representative of the actual tax attributes of FSIC III’s distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV. No portion of FSIC III’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 FSIC III’s shares of common stock is subject to the discretion of FSIC III’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. The distribution rate is not guaranteed, and may change or be discontinued at any time.

Corporate Governance

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

© 2016 FS Investment Corporation III