FS KKR Capital Corp. provides senior secured debt as its primary investment vehicle. These are typically first-lien or second-lien loans to private U.S. middle-market companies, offering a high degree of collateral protection for the lender.
Price Range: Variable based on interest rates and credit risk
Pain Points: Lack of access to traditional bank financing for mid-sized enterprises and need for capital stability.
Solutions: Provides 'one-stop' customized credit solutions to support company growth, acquisitions, or recapitalization.
Target Users: Privately held U.S. middle-market firms with annual EBITDA between $50 million and $100 million.
Supply Chain
Private middle-market U.S. companiesFinancial sponsorsSecondary loan markets
A secondary component of the company's debt strategy, subordinated or mezzanine loans sit lower in the capital structure than senior debt, providing higher potential yield in exchange for higher risk profile.
Price Range: Variable based on interest rates and risk premium
Pain Points: Capital structure gaps for growing companies that have reached senior debt capacity.
Solutions: Offers flexible capital access to target companies beyond standard senior lending limits.
Target Users: Established U.S. small to mid-sized enterprises with annual revenues from $10 million to $2.5 billion.
Supply Chain
Private middle-market U.S. companies
Loans where the collateral is tied specifically to company assets, providing an additional layer of security and financing flexibility for borrowers.
Price Range: Variable based on asset liquidity and credit risk
Pain Points: Companies with cash flow volatility but strong asset bases requiring credit.
Solutions: Liquidity solutions based on the liquidation value of specific company assets.
Target Users: Private U.S. companies seeking non-traditional credit financing.
Supply Chain
Private U.S. companies with tangible/intangible assets
FS KKR often acquires non-controlling stakes in common or preferred equity, sometimes paired with debt investments or via warrants and options, as a means of enhancing potential total return.
Price Range: Valuation-dependent
Pain Points: Need for equity capital for target companies and upside capture for the lender.
Solutions: Equity stake that aligns the interests of the financier with the growth of the borrower.
