BDC Specialist Franklin Square Announces Record 2015

Mar 24 2016 | 8:56pm ET

Liquid alternatives specialist Franklin Square Capital Partners has announced that its business development company (BDC) direct lending platform committed over $1.9 billion to private deals in the fourth quarter of 2015, and more than $5.6 billion for the full year 2015. 

Last year’s annual total represents Franklin Square’s highest on record and is an increase of more than $400 million from 2014, according to the company.

Franklin Square, which is the largest manager of BDCs, directly originated six new portfolio companies and 10 new commitments to existing portfolio companies during the quarter, and completed new directly originated deals with 46 portfolio companies in 22 states during the full year. 

“The scale of our direct lending platform is a competitive advantage for our investors, particularly when markets are experiencing volatility,” said Michael Forman, chairman and CEO of Franklin Square. “We believe our ability to put capital to work when traditional lenders are under pressure will prove beneficial to our investors in the long run.”

Franklin Square’s directly originated deals are unique to its BDCs and not accessible elsewhere. The firm currently has four BDC’s managed by affiliates and sub-advised by GSO Capital Partners. The firm launched its most recent BDC in January of 2016.

“We invested a significant amount of capital during a period of time in which the primary market for syndicated loans froze for many companies and traditional loan funds experienced heavy outflows,” added Michael Kelly, CIO of Franklin Square. “Our platform displayed its advantages in the fourth quarter by underwriting 16 new private deals.”

Founded in Philadelphia in 2007, Franklin Square listed its inaugural non-traded BDC fund on the New York Stock Exchange in April 2014, marking the first such liquidity event for a non-traded BDC. The company has become a leading manager of alternative investment funds that provide access to asset classes, strategies and managers typically available only to sophisticated institutional investors. It managed approximately $17 billion in assets as of September 30, 2015, including $15.5 billion in BDC assets, as of December 2015.

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