FS Investments adds Gerson as head of private credit

The mid-market lender, which serves as investment advisor to the FS Investment Corporation BDC, has been rolling out new strategies at a clip.

A veteran of Lone Star Funds’ credit affiliate has been named head of private credit at FS Investments, which comes as the firm continues to expand its investment product offerings.

Philadelphia-based FS hired Brian Gerson, formerly of LStar Capital, for the new position, which will report to FS president and chief investment officer Mike Kelly. Kelly, who had already been CIO, was promoted to the president post in July, while still retaining his responsibilities for overseeing the firm’s investments.

While at LStar, Gerson’s work included the Middle Market Growth Programme, a partnership launched in January 2016 with Antares that offered corporate borrowers unitranche loans of up to $350 million. LStar pulled out of MMGP in May. Prior to that, he was a founding member at Solar Capital Partners, a New York-based business development company that launched in 2007 with the backing of Magnetar Capital.

The hire comes as FS Investments is rapidly expanding its investment platforms, and follows a spate of senior hires in addition to Kelly’s promotion.

FS Investments could not be reached for comment.

In October, the firm launched the FS Multi-Strategy Alternatives Fund, a mutual fund sub-advised by Wilshire Associates targeting hedge fund-style investment opportunities, while in March it debuted FS Energy Total Return Fund, a closed-end interval fund sub-advised by Magnetar Capital targeting debt and equity in energy companies.

In addition, the firm expanded into real estate in September. FS hired Rob Lawrence, previously executive managing director at boutique real estate financer Singer & Bassuk, as global head of real estate and managing director to lead its FS Credit Real Estate Income Trust.

In addition, the firm also hired Mike Carter, the former chief operating officer at Magnetar, as head of strategy. He has been tasked with expanding the firm’s credit operations as well as launching new platforms.

Formerly Franklin Square Capital Partners, FS Investments rebranded in 2016 and oversees one publicly traded  business development company, FS Investment Corporation, along with four private ones: FSIC II, FSIC III, FSIC IV and FS Energy and Power.