Leading BDC closes $1.4bn of middle market lending in Q1

By Daniel Lanyon on Monday 12 June 2017

Alternative Lending

The Philadelphia-based Alternative Credit manager is seeing a ramp up in demand for its loans.

The Philadelphia-based Alternative Credit manager is seeing a ramp up in demand for its loans. 

Alternative asset manager FS Investments has seen strong growth in origination  in its direct lending platform,  committing more than $1.4bn in senior secured loans and other debt and equity financing to middle market companies in the first quarter of 2017.

Last year the firm closed more than $4bn, but with nearly half of this coming in the fourth quarter of the year. Almost $1bn was lent Q3 of 2016 , meaning the firm nearly doubled originations in the first quarter of this year compared to the same period last year.

The firm, which has more than $20bn in assets under management, is the largest manager of business development companies (BDCs), BDC. The directly originated investments supported seven new portfolio companies and provided financing to several existing portfolio companies during the quarter.

The commitments were provided by five BDCs managed by affiliates of FS Investments and sub-advised by GSO Capital Partners LP (GSO) or its affiliates: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and FS Energy and Power Fund (FSEP). 

FS Investments' directly originated transactions, which are unique to its BDCs and not typically accessible elsewhere, including investments in Jet Support Services, United Subcontractors and Chisholm Oil and Gas Operating.

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