FSK 📈 FS KKR Capital - Overview

FS KKR Capital Corp is a business development company that specializes in providing customized credit solutions to private middle market companies in the United States. By investing in debt securities, the company offers a range of financing options to help these businesses achieve their growth objectives.

The company's investment strategy focuses on senior secured debt, with a smaller allocation to subordinated debt. It achieves this by purchasing loan interests through secondary market transactions or directly from target companies as primary market investments. Additionally, the company may also invest in first lien senior secured loans, second lien secured loans, and mezzanine loans, providing a diversified portfolio of debt investments.

In conjunction with its debt investments, FS KKR Capital Corp often receives equity interests, such as warrants or options, as additional consideration. The company may also purchase minority interests in the form of common or preferred equity in its target companies, either alongside debt investments or through co-investments with financial sponsors.

On an opportunistic basis, the company may also invest in corporate bonds and similar debt securities. However, it avoids investing in start-up companies, turnaround situations, or companies with speculative business plans, instead focusing on established small and middle-market companies with annual revenues between $10 million and $2.5 billion.

FS KKR Capital Corp's sweet spot is providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million to $100 million at the time of investment. The company seeks to exit its securities by selling them in a privately negotiated over-the-counter market. If this is not possible, it aims to exit through repayment, an initial public offering of equity securities, merger, sale, or recapitalization.

For more information about FS KKR Capital Corp, please visit their website at https://www.fskkradvisor.com.