Investment strategy

Core Investment Strategies

Our primary focus is to leverage our size and GSO / Blackstone’s credit platform to source transactions for our core investment strategies which include direct originations and opportunistic investments.

Direct originations

Our direct lending business provides capital solutions to private U.S. companies currently underserved by traditional lenders. We leverage GSO / Blackstone’s global sourcing and origination platform to directly originate investment opportunities. These direct lending opportunities typically offer the potential for above-market risk-adjusted returns.

We seek to invest in a broadly diversified portfolio of companies with:

  • Leading, defensible market positions
  • Positive cash flows and growth potential
  • Proven management teams
  • Private equity sponsorship
  • Viable exit strategies

Opportunistic investments

In addition to sourcing new direct originations, we look to identify opportunistic investments through which we could capitalize on market price inefficiencies. The opportunistic investments in our portfolio are typically purchased at a discount to par and have potential for meaningful capital appreciation.

FSIC’s access to the broad global resources of GSO / Blackstone, with approximately 340 employees as of September 30, 2016, allows us to evaluate a wide universe of opportunities and selectively deploy capital in situations with strong return potential.

Such opportunities may include, among other things:

  • Event-driven investments
  • Anchor orders
  • Collateralized securities

Although our primary focus is to invest in directly originated transactions and opportunistic investments, in certain circumstances we will also invest in the broadly syndicated loan and high yield markets. Specifically, we seek to leverage the scale of GSO / Blackstone’s trading platform to invest in these markets during periods of volatility or market dislocations in order to identify market price inefficiencies and potentially generate above-market returns.