By Daniel Lanyon on 13th December 2017
The deal will create the largest lendig platform for smaller firms in the US.
Alternative investment manager FS Investments and private equity giant KKR have entered into an agreement to create the largest business development company (BDC) platform in the US, with $18bn combined assets under management.
The platform will offer differentiated origination capabilities and expertise in capital markets that provides sponsors and corporates with broad product solutions and delivers value to investors through enhanced deal flow and expanded proprietary investment opportunities.
"As the market has evolved, we've recognized the need to also evolve our approach to the business and we believe this partnership with KKR provides the scale, infrastructure and credit expertise necessary to succeed as an investor in the private credit markets," said Michael Forman, Chairman and Chief Executive Officer of FS Investments. "We are excited to partner with KKR, a leader in the alternative asset management industry, to create the preeminent BDC platform."
Todd Builione, chief executive officer of CCT and President of KKR Credit and Markets, said, "We are very much looking forward to working closely with our partners at FS Investments. Through our collective scale, we believe we will be able to offer enhanced opportunities for value to our investors – and more holistic financing solutions to our sponsor and corporate clients. This partnership also represents a substantial milestone for KKR Credit,