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FS Specialty Lending Fund (FSEN0.00%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total assets of approximately $2.1 billion as of December 31, 2024, with investments primarily in senior secured loans, unsecured debt, and equity securities.
The company reported net investment income of $134.6 million for the year, compared to $81.4 million in the previous year, reflecting an increase in interest income due to a larger investment portfolio.
Net realized gains on investments were $0.9 million, while net change in unrealized depreciation was $40.4 million, primarily due to the performance of directly originated assets and certain upstream equity investments.
FS Specialty Lending Fund's portfolio consisted of 86 portfolio companies at year-end, with a focus on diversified credit investments across various industries.
The fund's investment policy transitioned from primarily energy-related investments to a diversified credit strategy in September 2023, which is expected to continue reducing energy investment exposure over time.
The company declared distributions totaling $153.6 million for the year, representing an annualized distribution rate of approximately 10% based on the net asset value of $3.30 per share as of December 31, 2024.
FS Specialty Lending Fund's management is provided by FS/EIG Advisor, LLC, which oversees the fund's operations and investment decisions under an advisory agreement.
The fund utilizes leverage through a repurchase facility with Barclays Bank PLC, with $500 million outstanding as of year-end, to enhance returns on its investment portfolio.
The filing also details the fund's compliance with regulatory requirements as a business development company and its intention to maintain its status as a regulated investment company for tax purposes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the FS Specialty Lending Fund annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.