FS Energy & Power Fund

FSEP (closed)

:

Investment objectives

Generate current income and long-term capital appreciation

Overview

FSEP is a non-traded business development company (BDC). The fund invests primarily in the debt and, to a lesser extent, equity securities of private U.S. energy and power companies.

Adviser

FS Investment Advisor, LLC
An affiliate of FS Investments

Sub-adviser

GSO Capital Partners LP
The credit platform of Blackstone


Pricing

Net asset value (as of 9/30/2016) $7.35
Annualized distribution rate 1 (based on net asset value) 9.64%
Annualized distribution amount 1 (as of 9/30/2016) $0.71
Distribution reinvestment price 2 (as of 10/31/2016) $7.52


View Pricing Disclosure For Footnotes 12
1The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular weekly cash distribution per share as of the date indicated, without compounding), divided by the net asset value as of the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions on FSEP’s common shares is subject to the discretion of FSEP’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. For the nine months ended September 30, 2016, approximately 99% of FSEP’s distributions were funded through net investment income and 1% on account of limited partnership interest on a tax basis. No portion of FSEP’s distributions during the nine months ended September 30, 2016 was funded through expense reimbursements from FSEP’s sponsor. The determination of the tax attributes of FSEP’s distributions is made annually at the end of FSEP’s fiscal year, and a determination made on an interim basis may not be representative of the actual tax attributes of FSEP’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. FSEP's total expenses as a percentage of average net assets attributable to common shares was 5.55% for the year ended December 31, 2015.
2The distribution reinvestment price is subject to change. The price at which shares of FSEP’s common shares are issued under its distribution reinvestment plan is determined by FSEP’s board of trustees, or a committee thereof, at a price per share that is (i) not less than the NAV per share immediately prior to the payment of the distribution and (ii) not more than 2.5% greater than the NAV per share as of such date.

Performance – returns


Shareholder returns 1
Without sales charge, compounded monthly
YTD
21.2%
1 year
6.9%
3 years
Annualized
0.0%
5 years
Annualized
4.6%
Since inception
Annualized
4.6%
Cumulative total return
Since inception
27.0%
Cumulative total return 2
Since inception (with sales charge, compounded monthly)
14.3%
Cumulative cash distributions per share 3
Since inception
$3.56
Inception date
7/18/2011
As of 10/31/2016, unless otherwise noted. Numbers may be rounded.
Returns shown are historical only and are based on past performance. Past performance is not a guarantee of future results.
View Returns disclosure For Footnotes 123
1

Shareholder returns (without sales charge) are the total returns an investor received for the highlighted period taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at FSEP’s public offering price, excluding selling commissions and dealer manager fees, at the beginning of the applicable period and reinvested all cash distributions pursuant to FSEP’s distribution reinvestment plan (DRP). Valuation as of the end of each period is the repurchase price pursuant to FSEP’s share repurchase program on such date. Shareholder returns (without sales charge) do not include selling commissions and dealer manager fees, which could total up to 10% of FSEP’s public offering price. Had such selling commissions and dealer manager fees been included, performance would be lower. Upon liquidation or repurchase, market conditions may cause the actual values to be more or less than the values shown.

The shareholder returns reflect FSEP’s expenses for each period shown. FSEP’s total expenses as a percentage of average net assets attributable to common shares was 5.55% for the year ended December 31, 2015.

2The cumulative total return (with sales charge) is the total return an investor received since inception taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at FSEP’s public offering price, including the maximum selling commissions and dealer manager fees, at inception and reinvested all distributions pursuant to FSEP’s DRP. Valuation as of the end of the period is the repurchase price pursuant to FSEP’s share repurchase program on such date. Upon liquidation or repurchase, market conditions may cause the actual value to be more or less than the values shown.
3Cumulative cash distributions per share reflect the total regular cash distributions paid since inception on a per share basis as of October 31, 2016. The payment of future distributions on FSEP’s shares is subject to the discretion of FSEP’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.

Portfolio composition1

View Portfolio disclosure For Footnotes 1
1As of 6/30/2016. Calculated as a percentage of fair value. Fair value is determined by FSEP’s board of trustees. Securities may be an obligation of one or more entities affiliated with the named company. Percentages shown are net of unfunded commitment amounts.

Key facts*

Inception date July 18, 2011
Closed to new investors November 16, 2016
Total AUM $3.96 billion
Number of portfolio companies 87
Sponsor commitment 1 $47.59 million
Floating rate assets 2 46% of portfolio
Distribution frequency 3 Monthly
Liquidity 4 Quarterly tender offers
Tax reporting Form 1099-DIV
*As of 6/30/2016, unless otherwise noted.

Core investment strategies 5

Direct originations
62%
Opportunistic
20%

Total
82%
View key facts and core investment strategies disclosure For Footnotes 12345
1Sponsor commitment means proceeds from investors affiliated with FS Investment Advisor, LLC and GSO Capital Partners LP, including certain members of FSEP’s board of trustees.
2Calculated as a percentage of fair value. Fair value is determined by FSEP’s board of trustees.
3The payment of future distributions on FSEP’s common shares is subject to the discretion of FSEP’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.
4FSEP intends to repurchase a limited number of common shares pursuant to its share repurchase program. FSEP may amend, suspend or terminate its share repurchase program at any time. See FSEP’s prospectus for more information.
5Calculated as a percentage of fair value. Fair value is determined by FSEP’s board of trustees. FSEP defines core investment strategies as any investment that is a direct origination or an opportunistic investment. Broadly syndicated/other investments comprised 18% of FSEP’s portfolio as of June 30, 2016.
View risk factors disclosure

The following are some of the risks an investment in our common shares involves; however, you should carefully consider all of the information found in the section of our prospectus entitled “Risk Factors” before deciding to invest in our common shares.

  • Because there is no public trading market for our common shares and we are not obligated to effectuate a liquidity event by a specified date, it will be difficult for you to sell your common shares. If you are able to sell your common shares before we complete a liquidity event, it is likely that you will receive less than what you paid for them. While we intend to conduct quarterly tender offers for our common shares, only a limited number of our common shares will be eligible for repurchase and we may suspend or terminate the share repurchase program at any time.
  • Our distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to us for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.
  • An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies.
  • Investing in middle market companies involves a number of significant risks, any one of which could have a material adverse effect on our operating results.
  • A lack of liquidity in certain of our investments may adversely affect our business.
  • We are subject to financial market risks, including changes in interest rates, which may have a substantial negative impact on our investments.
  • We have borrowed funds to make investments, which increases the volatility of our investments and may increase the risks of investing in our securities.
  • Our previous distributions to shareholders were funded in significant part from the reimbursement of certain expenses, including through the waiver of certain investment advisory fees, that are subject to repayment to our affiliate, FS Investments, and our future distributions may be funded from such waivers and reimbursements. Significant portions of these distributions may not be based on our investment performance and such waivers and reimbursements by FS Investments may not continue in the future. If FS Investments had not agreed to reimburse certain of our expenses, including through the waiver of certain advisory fees, significant portions of these distributions may come from offering proceeds or borrowings. The repayment of amounts owed to FS Investments will reduce the future distributions to which you would otherwise be entitled.

Corporate governance

FSEP Q3 2016 Shareholder Replay Call

If you want to learn more, contact us at: Support