FS KKR Capital (FSK)

FSK focuses mainly on debt investments, especially senior secured loans and second-lien secured loans. These instruments are typically made to private companies that do not have the same access to public debt markets as larger issuers. The portfolio can also include subordinated debt and asset-based financing, giving the company flexibility to lend across different risk levels and collateral structures. Because its borrowers are generally middle-market businesses, FSK’s results are closely linked to credit quality, interest-rate conditions, and the health of the U.S. private-company economy.

As a business development company, FSK is designed to pass through income to shareholders, subject to regulatory requirements that shape leverage, asset coverage, and distribution policy. Its externally managed structure allows it to draw on the credit underwriting capabilities and private-market relationships of its investment adviser. For investors, FSK offers exchange-traded exposure to private credit, a market segment often associated with higher yields than traditional public corporate bonds, but also with risks such as borrower defaults, valuation uncertainty, and sensitivity to economic cycles.