Dechert served as legal advisor to FS Investments, a leading alternative investment manager, in connection with its agreement to partner with KKR, a leading global investment firm, to create the largest business development company (BDC) platform, with $18 billion in 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.
Under the terms of the agreement, FS Investments and KKR will seek stockholder approval for the partnership to provide investment advisory services to the BDCs that FS Investments sponsors, FS Investment Corporation (NYSE: FSIC) (FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), and FS Investment Corporation IV (FSIC IV), and to the BDC currently advised by KKR, Corporate Capital Trust, Inc. (NYSE: CCT) (CCT). Corporate Capital Trust II (CCT II), currently advised by CNL and sub-advised by KKR, will also be offered the opportunity to be included subject to board and shareholder approval. The FSIC funds will be able to co-invest with KKR’s other funds and accounts.
The board of directors or trustees have approved the new investment advisory agreements for each FSIC fund and CCT, and each fund will seek stockholder approval. The funds currently intend to begin soliciting stockholder approval of the new investment advisory agreements, as applicable, in January 2018.
The Dechert team was led by corporate partner James Lebovitz, and included corporate partners Eric Siegel and Bart Winokur, tax partner Steven Clemens, financial services partner David Harris, as well as corporate associates Matthew Rothman and Stephanie Haas. Dechert has advised FS Investments for the past six years.
Read the full press release: FS Investments and KKR Partnering to Form Premier $18 Billion Middle Market Alternative Lending Platform
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