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.