PHILADELPHIA and WASHINGTON, Dec. 11,
2017 /PRNewswire/ -- FS Investments, a leading
alternative investment manager with more than $20 billion in assets under management, today
announced that it has entered into an agreement to create a joint
venture with EIG Global Energy Partners (EIG), a global alternative
investment firm focused on energy and energy-related
infrastructure.
The FS Investments / EIG joint venture is expected to create a
platform with the scale, flexibility and energy industry expertise
to offer energy and infrastructure companies flexible financing
solutions across the capital structure. As a result,
following the formation of the venture, the FS Investments / EIG
team expects to generate enhanced deal flow — particularly directly
originated deals — that positions the portfolio to create long term
value for FS Energy and Power Fund (FSEP) investors.
"As a leading provider of institutional capital in the global
energy industry, EIG is a perfect partner to jointly manage FSEP
given the firm's sector expertise, global reach and scale," said
Michael Forman, Chairman and Chief
Executive Officer of FS Investments. "We look forward to working
together to transition the FSEP portfolio with an eye toward
enhancing returns, reducing risk, and creating a liquidity event
for our investors through a public listing."
"We are excited to partner with FS Investments to manage FSEP,"
said William Sonneborn, President of
EIG. "We are honored that after an extensive search, FS
Investments and the board of FSEP chose EIG as their partner.
We believe that as an integrated team we can improve the existing
portfolio and its returns to FSEP investors."
Under the terms of the agreement, following shareholder
approval, FS Investments and EIG will provide investment advisory
services to FSEP. In addition, EIG has filed an application for a
new exemptive relief order that will allow FSEP to co-invest with
EIG's other funds and accounts.
Timeframe for Transition
The board of trustees of FSEP
has approved the new investment advisory agreement with the joint
venture. FSEP currently intends to begin soliciting shareholder
approval of the new investment advisory agreement in January 2018.
EIG will provide non-advisory services to FSEP until FSEP's
entry into the new investment advisory agreement with the joint
venture. FS Investments and GSO Capital Partners (GSO) have entered
into an agreement to conclude their relationship with respect to
all of FS Investments' sponsored funds that are sub-advised by GSO.
FS, GSO and EIG will work together to ensure a smooth
transition.
"Our partnership with GSO has created significant value for our
investors and borrowers," added Forman. "We thank GSO for its
sub-advisory services and commitment to ensure a seamless transfer
of advisory responsibilities."
Additional Announcements from FS
Investments
Separately, FS Investments also announced that
it has entered into an agreement to create a partnership with KKR
& Co. L.P. to provide investment advisory services to four
business development companies (BDCs) managed by FS Investments and
a BDC currently managed by KKR, and the firm has hired a seasoned
liquid credit portfolio manager to manage FS Global Credit
Opportunities Fund.
Additional information regarding these announcements can be
accessed at www.fsproxy.com and www.fsinvestments.com.
This announcement does not impact FS Investments' other funds:
FS Credit Income Fund, FS Credit Real Estate Income Trust, Inc., FS
Energy Total Return Fund and FS Multi-Strategy Alternatives
Fund.
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 and focuses on setting
industry standards for investor protection, education and
transparency.
FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Washington, DC. Visit fsinvestments.com to
learn more.
About EIG
EIG Global Energy Partners specializes in
private investments in energy and energy-related infrastructure on
a global basis and has $17.0 billion
under management as of September 30,
2017. Since 1982, EIG has been one of the leading providers
of institutional capital to the global energy industry, providing
financing solutions across the balance sheet for companies and
projects in the oil and gas, midstream, infrastructure, power and
renewables sectors globally. EIG has invested over $24 billion in more than 320 portfolio
investments in 36 countries. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de
Janeiro, Hong Kong and
Seoul. For more information, please visit
www.eigpartners.com.
Contact Information:
FSEP Investors
833-536-4196
Media (FS Investments)
Marc
Yaklofsky or Kate Beers
media@fsinvestments.com
215-495-1174
Media (EIG)
Sard Verbinnen
Robert Rendine or Brandon Messina
212-687-8080
Additional Information and Where to Find
It
This communication relates to a
proposed new investment advisory agreement for FSEP (the
Proposal). In connection with the Proposal, FSEP intends to
file relevant materials with the Securities and Exchange Commission
(the SEC), including a proxy statement on Schedule 14A (Proxy
Statement). This communication does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended. SHAREHOLDERS OF FSEP ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSAL. Investors and security holders will be able to
obtain the documents filed with the SEC free of charge at the SEC's
web site, http://www.sec.gov and from FS Investments'
website at www.fsinvestments.com.
Participants in the Solicitations
FSEP and its
trustees, executive officers and certain other members of
management and employees, including employees of FS Investments,
EIG and their respective affiliates, may be deemed to be
participants in the solicitation of proxies from the shareholders
of FSEP in connection with the Proposal. Information regarding
the persons who may, under the rules of the SEC, be considered
participants in the solicitation of FSEP's shareholders in
connection with the Proposal will be contained in a Proxy Statement
when such document becomes available. These documents may be
obtained free of charge from the sources indicated above.
Forward-Looking Statements
This announcement may
contain certain "forward-looking" statements as that term is
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended
by the Private Securities Litigation Reform Act of 1995, including
statements with regard to future events or the future performance
or operations of FSEP. 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. Factors that could cause actual results
to differ materially include changes in the economy, risks
associated with possible disruption of FSEP's operations or the
economy generally due to terrorism or natural disasters, future
changes in laws or regulations and conditions in FSEP's operating
area, failure to obtain requisite shareholder approval for the
proposals set forth in the Proxy Statement, failure or inability to
obtain an exemptive relief order, or an amendment to an existing
exemptive relief order, from the SEC and failure to consummate the
transactions contemplated by the master agreement between FS
Investments and EIG. Some of these factors are enumerated in the
filings FSEP makes with the SEC and will also be contained in the
Proxy Statement when such document becomes available. The inclusion
of forward-looking statements should not be regarded as a
representation that any plans, estimates or expectations will be
achieved. Any forward-looking statements speak only as of the date
of this communication. Except as required by the federal securities
laws, FSEP undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place
undue reliance on any of these forward-looking statements.
SOURCE FS Investments