FS/KKR Advisor

What FS/KKR Advisor does

FS/KKR Advisor, LLC is an investment adviser formed as a partnership between Franklin Square Holdings, L.P. (operating as Future Standard, founded in 2007 by Michael C. Forman) and KKR Credit Advisors (US) LLC. The firm serves as the external investment adviser and manager for FS KKR Capital Corp. (NYSE: FSK), a publicly traded business development company (BDC), and related vehicles including KKR FS Income Trust (K-FIT) and KKR FS Income Trust Select (K-FITS). As of March 31, 2026, FS/KKR Advisor manages approximately $21 billion in assets under management, providing direct lending and asset-based finance solutions to private upper middle market U.S. companies. The investment portfolio at the FSK level totals $12.3 billion at fair value across 236 portfolio companies in 23 industries, with 63.7% in senior secured debt, a weighted average yield of 9.7% on accruing debt investments, and a non-accrual rate of 4.2% (rising to 5.5% per Q4 2025 disclosures, above the BDC industry average of 3.8%).

The firm's core business model is intermediating capital between public debt and equity investors and private middle market borrowers. Revenue is generated primarily through interest income on debt investments (senior secured loans, subordinated debt, and asset-based financing), with FSK required as a regulated BDC to distribute at least 90% of taxable income as dividends. The company raises capital through public unsecured notes offerings (e.g., $600M of 6.875% notes due 2029 and $900M of 7.500% notes due 2031) and preferred stock issuances. FS/KKR Advisor earns management fees and incentive fees from the managed vehicles, with KKR providing institutional sourcing, underwriting, and risk management through its $293 billion credit platform. The firm benefits from a deeply experienced leadership team drawn from KKR, Deutsche Bank, Société Générale, and Ernst & Young.

The company is currently navigating a period of significant credit and market stress. NAV per share declined 6.2% in Q2 2025 to $21.93 and further to $20.89 in Q4 2025, driven by combined fair value declines of approximately $880 million; the quarterly dividend was cut from $0.70 to $0.48 (31.4%); FSK shares trade at a roughly 41.6% discount to NAV; and multiple securities class action lawsuits have been filed alleging misstatements regarding portfolio valuation and dividend sustainability. In response, sponsor KKR announced a $600 million capital return package (tender offer, buyback, preferred issuance, and incentive fee waiver) and provided a $150 million convertible preferred investment, with FSK concurrently completing a $900 million refinancing in June 2026 to stabilize the balance sheet.

Name

FS/KKR Advisor

Legal name

FS KKR Capital Corp.

Website

https://fskkrcapitalcorp.com

Company type

Public

Founded year

2021

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

FS/KKR Advisor is the external investment adviser to FS KKR Capital Corp. (NYSE: FSK) and related vehicles, managing approximately $21 billion in assets. The partnership between Future Standard and KKR Credit provides direct lending and asset-based finance solutions to private upper middle market U.S. companies.

Ownership category

akta.pro rank

Product category

Business Development Company (Private Credit / Middle Market Lending)

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394), Investment Banking and Securities Intermediation (523150), Other Financial Investment Activities (5239)

SIC

Security Brokers, Dealers & Flotation Companies (6211), Investment Advice (6282)

akta.pro primary industry

BDC / Public Vehicle Venture Debt Providers (FSANAIAC)

akta.pro secondary industry

Primary Fund-of-Funds (Blind-pool FoF) (FSANAGAA)

Keywords

• Middle market lending
• Business development company
• Direct lending services
• Senior secured debt
• Private credit investing

Headquarters

HQ city

Philadelphia

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income on Debt Investments: The primary revenue stream comes from interest income earned on debt investments made in private middle market U.S. companies. The company invests primarily in senior secured debt and to a lesser extent subordinated debt and asset-based financing loans. As a BDC, the company is required to distribute at least 90% of its taxable income to shareholders as dividends.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

FS/KKR Advisor, LLC is an investment adviser that externally manages FS KKR Capital Corp. (NYSE: FSK), a publicly traded business development company (BDC). The company provides customized credit solutions to private middle market U.S. companies, primarily through senior secured debt (first and second lien), subordinated debt, and asset-based financing loans. As of March 31, 2026, the portfolio comprised $12.3 billion in fair value across 236 portfolio companies in 23 industries with a 9.7% weighted average annual yield on accruing debt.

Product overview

FS KKR Capital Corp. is a single unified business development company (BDC) product that provides customized credit solutions to private middle market U.S. companies. The company focuses on direct lending and asset-based finance solutions, investing in senior secured debt (first and second lien), subordinated debt, and preferred equity to achieve favorable risk-adjusted returns. The investment manager is FS/KKR Advisor, LLC, a partnership between Future Standard and KKR Credit, which manages approximately $21 billion in assets under management as of March 31, 2026.

Differentiator

Problem solved

Functional benefit

Products and services

• FS KKR Capital Corp. (FSK) - Senior Secured Debt Investments Senior secured first and second lien debt investments in private U.S. middle market companies, representing the primary product offering of the BDC managed by FS/KKR Advisor. As of March 31, 2026, senior secured investments totaled 63.7% of the portfolio at fair value (72.7% when looking through to COPJV investments).
• Subordinated Debt Investments Subordinated debt investments in private U.S. middle market companies, representing a secondary component of the BDC's credit offerings to achieve favorable risk-adjusted returns.
• Asset-Based Financing Loans Asset-based financing loans provided to private U.S. middle market companies, forming part of the customized credit solutions delivered by the BDC alongside senior secured and subordinated debt investments.
• Investment Advisory Services (FS/KKR Advisor) External investment advisory and management services provided by FS/KKR Advisor, LLC, a partnership between Franklin Square Holdings, L.P. (Future Standard) and KKR Credit Advisors (US) LLC. Manages approximately $21 billion in assets under management as of March 31, 2026, leveraging KKR's $293 billion credit platform for sourcing, underwriting, and risk management.

Quantifiable outcome

• 9.7% weighted average annual yield on accruing debt investments
• +2 more outcomes

Named customers2 records

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Credit Opportunities Partners JV, LLCcoreStrategic or Co-development Partner13.9% of portfolio invested through Credit Opportunities Partners JV, LLC joint venture. Senior secured investments total 72.7% when looking through to COPJV investments.

Scale indicators17 records

Recent moves9 records

Expansion highlights4 records

Direct peers

• Carlyle GMS Finance (CG): Carlyle-sponsored middle-market direct-lending BDC with overlapping investment activity and sponsor-affiliated model similar to FS/KKR.
• Blackstone Private Credit Fund (BCRED) / Blackstone Secured Lending Fund: Public and non-traded BDCs from Blackstone that originate senior-secured loans to U.S. middle-market borrowers, directly competing with FSK in deal sourcing and structure.
• Main Street Capital: Public BDC investing in senior debt, mezzanine and equity to lower middle market companies; peer in the same asset class with comparable underwriting focus.
• Ares Capital Corp: The largest publicly traded BDC; invests in senior secured debt to U.S. middle market companies and is the closest scale and business-model comparable to FSK.
• Golub Capital BDC: Public BDC focused almost exclusively on one-stop senior-secured loans to U.S. middle market sponsors; competes for the same deal flow as FSK.
• PennantPark Floating Rate Capital (PFLT): Floating-rate, first-lien-focused BDC investing in U.S. middle market companies; comparable income-oriented investment thesis to FSK.
• Sixth Street Specialty Lending (TSLX): Externally managed BDC affiliated with Sixth Street, providing senior-secured floating-rate loans to U.S. middle market companies; closest peer in externally-managed BDC structure.
• Apollo Investment Corp. (and Apollo Debt Solutions): Apollo-affiliated direct-lending vehicles that provide senior and mezzanine debt to U.S. middle market companies; overlap with FSK on portfolio names such as Medallia.
• Oaktree Specialty Lending (OCSL): Public BDC managed by Oaktree focused on senior-secured loans to middle market companies; comparable externally-managed model and risk profile.

Broad incumbents

• KKR Credit (KKR's broader credit platform): KKR's $293B global credit platform provides sourcing, underwriting and risk-management infrastructure to FSK; a broader incumbent whose fund vehicles partially overlap with FSK's mandate.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds7 records

Investors5 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FS/KKR Advisor