Philly-based alternative investment manager Franklin Square Capital Partners has launched its fourth fund, a global credit vehicle.
FS Global Credit Opportunities Fund, an unlisted closed-end fund, invests in loans, bonds and other credit instruments of public and private companies, with a strong focus on the European and U.S. markets.
GSO Capital Partners, the credit platform of Blackstone, is sub-advising and Blackstone senior managing director Doug Ostrover serves as lead portfolio manager.
The new fund will employ an event-driven approach, focusing on companies it believes are undervalued by the market and taking advantage of credit market dislocations resulting from impending corporate events such as mergers, acquisitions or corporate reorganizations.
“Our goal at Franklin Square is to provide individual and smaller institutional investors with the same investment access and investor protections that larger institutions demand,” said Franklin CEO Michael C. Forman in a statement. “This new fund adds to our stable of endowment-style funds and provides our investors access to what we expect will be high-performing global opportunities.”
This is the third fund Franklin and GSO/Blackstone have partnered on.
Founded in Philadelphia in 2007, Franklin Square currently manages three funds with over $9 billion in assets as of September 30, 2013.
GSO, with $63.3 billion in assets under management as of September 30, 2013, invests in a broad array of strategies including mezzanine, distressed investing leveraged loans and other special situation strategies.