KKR’s joint venture and related transactions with FS Investments.

Davis Polk is advising KKR on its joint venture and related transactions with FS Investments.

The transaction contemplates combining the business development corporation (BDC) businesses of KKR and FS under a 50/50 joint venture, and is expected to have a combined $18 billion in assets under management. The transaction is subject to approvals by stockholders of the BDCs that FS Investments sponsors, FS Investment Corporation, FS Investment Corporation II, FS Investment Corporation III and FS Investment Corporation IV, and to the BDC currently advised by KKR, Corporate Capital Trust, Inc. Corporate Capital Trust II, currently sub-advised by KKR, may also be included subject to board and shareholder approval. The BDCs currently intend to begin soliciting stockholder approval, as applicable, in January 2018.

KKR is a leading global investment firm that manages multiple alternative asset classes, including credit, private equity, energy, infrastructure and real estate, and, through its strategic manager partnerships, hedge funds. FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios.

The Davis Polk corporate team includes partner Ron Cami (Picture) and associates Abhishek Kolay, Jason Bassetti, Andrew Basham, Leeann Overstreet and Tierney O’Rourke. Partner Gregory S. Rowland and associate Mathew R. Silver are providing investment management advice. Partner Mary Conway and associate Patrick E. Sigmon are providing tax advice.

 

Involved fees earner: Ron Cami – Davis Polk & Wardwell; Abhishek Kolay – Davis Polk & Wardwell; Jason Bassetti – Davis Polk & Wardwell; Andrew Basham – Davis Polk & Wardwell; Leeann Overstreet – Davis Polk & Wardwell; Tierney O’Rourke – Davis Polk & Wardwell; Gregory Rowland – Davis Polk & Wardwell; Matthew Silver – Davis Polk & Wardwell; Mary Conway – Davis Polk & Wardwell; Patrick Sigmon – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: KKR;

 

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Author: Ambrogio Visconti