Virtually all investors want at least some portion of their investment portfolio to generate current income. “Fixed income” investments may not offer the potentially large returns of equities, but they aim to provide more predictable returns with less risk. The typical individual may hold traditional investments like CDs, Treasuries and corporate bonds for that purpose.
Large institutions and wealthy individuals often go beyond the traditional into alternative investments. Senior Secured Loans made to U.S. private companies have long been a popular alternative asset class. The loans help the private sector obtain capital to manage and grow their businesses and create jobs. Until recently, these investments were not accessible to those without millions to invest.
FS Investment Corporation II provides access to the world of private debt for the investing public.
With FSIC II, qualifying individuals can invest in the private debt of U.S. companies, much like institutions do, but with a minimum initial investment of only $5,000. Read about the Fund's investment strategy on the Investments section of this site.
Individuals can invest in private debt because FSIC II was established as a Business Development Company or BDC. Read the BDC section on this site for more information.
It’s important to be aware that an investment in FSIC II is subject to significant risks and may be considered speculative. Be sure to read the Risk Factors before deciding to invest.