PHILADELPHIA, PA – FS Investments, a leading alternative investment manager with over $19 billion in assets, today announced the launch of its first closed-end interval fund, FS Energy Total Return Fund. The fund seeks to generate an attractive total return consisting of current income and capital appreciation by investing in the equity and debt securities of both public and private energy and energy infrastructure companies. FS Investments already manages more than $5 billion of energy and power assets, with a focus on directly originated private debt investments.
“FS Investments looks for ways to help investors access alternative sources of income and growth in the market, and we believe the energy industry has great long-term fundamentals if you have the flexibility to invest selectively across the entire sector and capital structure,” said Michael C. Forman, Chairman and Chief Executive Officer of FS Investments.
FS Investments believes changing sources of energy supply, aging energy infrastructure, merger and acquisition activity in the sector, and commodity price volatility have created an attractive environment for investing in energy and energy infrastructure companies. FS Energy Total Return Fund seeks to capitalize on these favorable market conditions through what it believes are its key competitive advantages, which include an experienced senior management team, a flexible investment mandate across all energy sub-sectors and capital structures, a fund structure that supports a long-term investment horizon, and a differentiated investment process that aims to manage macroeconomic and commodity price risk.
“We always seek to match a fund’s structure with its investment strategy,” added Mike Kelly, Chief Investment Officer of FS Investments. “FS Energy Total Return Fund has a broad investment mandate and while a primary focus of the fund will be in liquid equity securities, as an interval fund, it maintains the ability to invest in less liquid securities that have the potential for outperformance.”
FS Investments has selected Magnetar Asset Management LLC (Magnetar) as the investment sub-adviser for the fund. Magnetar is part of an Illinois-based alternative asset management group with a strong track record of investing in the energy sector. For more than 10 years, Magnetar’s energy team has actively invested in the North American energy markets and manages approximately $4.3 billion of investor capital in private funds and institutional accounts.
FS Energy Total Return Fund is registered under the Investment Company Act of 1940 and continuously offers its shares on a daily basis. For further information regarding the fund please visit https://fsinvestments.com/investments/funds/fs-energy-total-return-i.
ABOUT FS INVESTMENTS
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth through funds managed in partnership with top institutional investment advisers. It focuses on setting industry standards for investor protection, education and transparency.
FS Investments is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages seven funds with over $19 billion in assets under management as of December 31, 2016. Visit fsinvestments.com to learn more.
FORWARD-LOOKING STATEMENTS AND IMPORTANT DISCLOSURES
This press release may contain certain forward-looking statements, including statements with regard to the future performance or operations of FS Energy Total Return Fund. Words such as “believes,” “expects,” “projects” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings FS Energy Total Return Fund makes with the U.S. Securities and Exchange Commission. FS Energy Total Return Fund undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FS Energy Total Return Fund is distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1100, Denver, CO 80203, member FINRA). ALPS Distributors, Inc. is not affiliated with either FS Investments or any of its affiliates.
An investment in FS Energy Total Return Fund involves a high degree of risk and may be considered speculative. Investors are advised to consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. The fund’s prospectus contains this and other information about the fund. Investors may obtain a copy of the fund’s prospectus free of charge at www.fsinvestments.com or by contacting FS Investments at 201 Rouse Blvd., Philadelphia, PA 19112 or by phone at 877-372-9880. Investors should read and carefully consider all information found in the fund’s prospectus and other reports filed with the U.S. Securities and Exchange Commission before investing.
This fund is new and has limited operating history.
Investing in the fund involves risk, including the risk that a shareholder may receive little or no return on their investment or that a shareholder may lose part or all of its investment. Investments in natural resource companies, master limited partnerships (MLPs), royalty trusts, equity securities (including dividend paying securities, private investment in public equity transactions and securities of smaller capitalization companies), debt instruments, high yield instruments and U.S. government debt securities; energy commodity prices and the volume of, and demand for, energy commodities; the highly cyclical nature of the natural resource and energy sectors; fluctuations of interest rates; investments in non-U.S. securities and securities denominated in foreign currencies and the economic impact on the Fund’s fixed income investments’ and investments in illiquid and restricted securities may create such risk.
FST000106, ED 6/30/2017