Smart investments follow disciplined practices.
We aim to achieve our investment objectives by adhering to detailed screening criteria, engaging in thorough due diligence, structuring transactions to manage risk of loss effectively while preserving the opportunity for gain, and committing significant resources to monitoring portfolio companies.
FSIC’s goal is to build a broadly diversified portfolio of first lien senior secured, second lien secured, and to a lesser extent, subordinated loans of carefully selected companies. FSIC’s target market includes a wide range of issuers, from large, well-recognized companies to the middle market firms that form the backbone of the U.S. economy. The companies we select for our portfolio are identified using the following investment guidelines which we believe will help us fulfill our investment objectives.*
- Established, stable companies with positive cash flow (we do not invest in start-ups, turnaround situations or companies with speculative business plans).
- Companies with leading, defensible market positions that exhibit the potential to maintain sufficient cash flows and profitability to service our debt in a range of market environments.
- Companies with proven management teams with an established track record of success.
- Companies where private equity firms have invested significant sums of equity capital.
- Companies engaged in a variety of industries (for diversification purposes).
- Companies whose business models and growth prospects provide a viable exit strategy.
*If we believe the benefits of investing are sufficiently strong, not all of these criteria will necessarily be met by each portfolio company.
