Fund is a non-traded Business Development Company that invests in private U.S. energy companies

PHILADELPHIA, PA

FS Energy and Power Fund (“FSEP”) successfully satisfied its minimum offering requirement of $2.5 million in offering proceeds raised from persons not affiliated with FSEP or its investment adviser, and admitted its initial public investors as shareholders. FSEP is a non-traded business development company focused on investing primarily in income-oriented securities of private energy and power-related companies throughout the U.S. FSEP has registered for public sale in a continuous offering up to $1.5 billion of its common shares, at an initial offering price of $10.00 per share. Going forward, FSEP intends to accept subscriptions on a continuous basis and issue shares at its semi-monthly closings.

FSEP’s launch was bolstered by a successful pre-launch private placement. Individuals and entities, including those affiliated with FSEP’s sponsor, Franklin Square Capital Partners (“Franklin Square”), and sub-adviser, GSO Capital Partners LP (“GSO”), the credit platform affiliate of The Blackstone Group L.P., invested over $20 million in FSEP in the private placement. Investors in the private placement were admitted to the fund at the same net share price as initial investors in the public offering. Franklin Square will bring its commitment to best practices and transparency to FSEP, including fully earned distributions, mark-to-market pricing and the aforementioned significant sponsor commitment.

FSEP’s launch was bolstered by a successful pre-launch private placement. Individuals and entities, including those affiliated with FSEP’s sponsor, Franklin Square Capital Partners (“Franklin Square”), and sub-adviser, GSO Capital Partners LP (“GSO”), the credit platform affiliate of The Blackstone Group L.P., invested over $20 million in FSEP in the private placement. Investors in the private placement were admitted to the fund at the same net share price as initial investors in the public offering. Franklin Square will bring its commitment to best practices and transparency to FSEP, including fully earned distributions, mark-to-market pricing and the aforementioned significant sponsor commitment.

“We believe that individual investors have not had sufficient access to the private companies which support the energy and power sector. We are pleased to bring FSEP to market, once again in partnership with GSO / Blackstone, who we expect, through its proprietary channels, will provide our investors with access to originated transactions with attractive investment characteristics,” said Michael C. Forman, President and Chief Executive Officer of FSEP. “We believe that FSEP represents an excellent opportunity for investors to capitalize on the energy and power sector’s favorable fundamentals, while avoiding the volatility that is often associated with commodity prices and the public markets generally.”

FSEP’s common shares have been approved for sale in 38 states, as well as Washington, D.C., Puerto Rico, the U.S. Virgin Islands and Guam. FSEP expects that its common shares will be approved for sale in most, if not all, of the remaining states prior to the end of the third quarter of 2011.