Largest BDC platform is made official

FS Investments and KKR have closed the deal to create a new $18bn platform, wrapping together six BDCs.

The deal to create the US’s largest business development company (BDC) platform has closed.

The announcement brings together FS Investments and KKR in a partnership that will see FS/KKR Advisor serve as the investment advisor to six BDCs: FS Investment Corporation I, II, III and IV; Corporate Capital Trust; and Corporate Capital Trust II.

Between them, the BDCs account for $18 billion in assets under management.

“Our focus will continue to be on optimizing the platform and enhancing performance as we also evaluate potential mergers of these BDCs to create value,” said Michael Forman, chairman and chief executive officer of FS Investments.

All six BDCs will be able to participate in the same transactions alongside each other and KKR Credit’s institutional funds and accounts.

For a full assessment of the deal, including a chart showing the FSIC and CCT portfolios, please click HERE.