FS Investment Corporation IV (FSIC IV) is a business development company (BDC) that primarily invests in floating rate, senior secured loans of private U.S. middle market companies.

Investment objectives

FSIC IV 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 IV is intended for investors looking for current income, fixed income portfolio diversification and a defensive investment approach focused on long-term performance and principal protection.

Investors are advised to consider the risks of an investment in FSIC IV in connection with viewing the video below. The following video has not been approved by the State of New Jersey for use by its residents. Shares of FSIC IV are currently not available for investment by residents of New Jersey.

Introducing FSIC IV

Investment strategy

FSIC IV 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 IV 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 its portfolio.

Note: To invest in FSIC IV, 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, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Tennessee and Vermont, impose heightened suitability standards. Shares of FSIC IV are currently not available for investment by residents of New Jersey.

An investment in Class T shares of FSIC IV’s common stock involves significant costs and investors should review the information in FSIC IV’s prospectus regarding fees and expenses.

*Class T shares are subject to an upfront sales load of up to 2.20% and offering expenses of up to 0.75%.  In addition, Class T shares are subject to an annual distribution fee of 1.40% of the estimated value of such shares, and are also subject to a contingent deferred sales charge of up to 3.90% of the lesser of the estimated value of the shares as of the date of repurchase and the public offering price at the times such shares were purchased if they are tendered within certain time periods as described in FSIC IV’s prospectus. The public offering price is subject to change.

**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 above without compounding), divided by the estimated value per share as of the date indicated above. The annualized distribution rate shown may be rounded. The determination of the tax attributes of FSIC IV’s distributions is made annually at the end of FSIC IV’s fiscal year and a determination made on an interim basis may not be representative of the actual tax attributes of FSIC IV’s distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV. The payment of future distributions on FSIC IV’s common stock is subject to the discretion of FSIC IV’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.

FSIC IV’s previous distributions to stockholders were funded in significant part by the reimbursement of certain expenses, including the waiver of certain investment advisory fees, that are subject to repayment to its affiliate, Franklin Square Holdings, and its future distributions may be funded from such waivers and reimbursements. Significant portions of these distributions may not be based on FSIC IV’s investment performance and such waivers and reimbursements by Franklin Square may not continue in the future. If Franklin Square had not agreed to reimburse certain of FSIC IV’s expenses, including through the waiver of certain advisory fees, significant portions of future distributions may have came from offering proceeds or borrowings. The repayment of amounts owed to Franklin Square will reduce the future distributions to which investors would otherwise be entitled.

Corporate Governance 

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

© 2016 FS Investment Corporation IV