FS Credit Opportunities Corp. · NYSE:FSCO
FS Credit Opportunities — Q2 2024 Earnings Presentation
14 slides from FS Credit Opportunities's earnings presentation, September 2024
Slide 1: FS Credit Opportunities Corp. Q2 2024
FS Credit Opportunities Corp. Q2 2024 All information is as of June 30, 2024, unless otherwise noted.
Slide 2: FS Investments firm overview
FIRM OVERVIEW FS Investments Access to a broad suite of alternative asset classes and strategies We are a global alternative asset manager through our investment teams and partners: dedicated to delivering attractive returns across private equity, private credit and real Credit expertise Private equ
Slide 3: Global Credit team
Global Credit team Founded in 2017, a continuation of the strategy employed by Andrew Beckman as Managing Director and Co-Head of Goldman Sachs Special Situations’ MSI Andrew Beckman, Head of Global Credit, Portfolio Manager, 29 years experience Salomon DW Aligned Smith Investcorp Goldman Sachs (SSG
Slide 4: Robust sourcing across public & private markets
Robust sourcing across public & private markets Relationships across FS Investments’ platform provide significant sourcing competitive edge Longstanding relationships Favorable allocations Private credit presence Well-positioned with banks and capital due to platform scale and gives us access to for
Slide 5: Flexible strategy investing in public and private markets
Flexible strategy investing in public and private markets The flexibility to adjust allocations between public and private markets has been a significant driver of our ability to deliver strong risk-adjusted returns across changing economic and credit cycles for investors Public markets Private mark
Slide 6: Q2 2024 portfolio and performance highlights
Q2 2024 portfolio and performance highlights • Generated a 2.75% net return during the quarter1 • Paid distributions of $0.18 per share, fully covered by net investment income2 Performance highlights • Net investment income (NII) for the quarter ended June 30, 2024 was approximately $58.8 million, o
Slide 7: FSCO portfolio overview
FSCO portfolio overview $2.14B 84 62% 83% 0.8 years Total assets Portfolio companies Floating rate assets1 Senior secured debt2 Average duration3 Asset type Private vs. public Geographic location 64% Senior Secured Loans – 1st Lien 48% Public 94% United States 4% Senior Secured Loans – 2nd Lien 52%
Slide 8: Preferred financing offers competitive advantages
Preferred financing offers competitive advantages Benefits of preferred equity financings Enhanced borrowing Attractive multi-year Favorable regulatory flexibility of underlying fixed-rate borrowings treatment assets Funding source Rate Amount Outstanding ($M) Undrawn ($M) Maturity Revolving Credit
Slide 9: Appendix
Appendix 9
Slide 10: Track record of generating strong risk-adjusted returns
Track record of generating strong risk-adjusted returns FSCO has outperformed the liquid indexes since the change in management in January 2018 Since January 1, 2018 Annualized Over/Under As of June 30, 2024 YTD 1YR 3YR 5YR 10YR return performance Sharpe ratio FSCO (Net NAV return) 8.67% 18.21% 6.30
Slide 11: Financial highlights
Financial highlights 1H 2021 FY 2021 1H 2022 FY 2022 1H 2023 FY 2023 1H 2024 $ in millions 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 Investment Portfolio $2,131 $2,244 $1,987 $1,825 $1,816 $1,933 $2,008 Debt $455 $435 $335 $285 $285 $390 $285 Preferred $298 $397 $397 $
Slide 12: Disclosures
Disclosures Forward-looking statements Statements included herein may constitute "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to futu
Slide 13: Risk factors
Risk factors FS Credit Opportunities Corp. (“FSCO” or the “Company”) is a non-diversified, closed-end management investment company that carries out the investment strategies generally described herein. An investment in FSCO involves a high degree of risk and may be considered speculative. The follo
Slide 14: Risk factors
Risk factors • FSCO’s investments in various types of debt securities and instruments may be secured, unsecured, rated or unrated, are subject to non-payment risk, and may be speculative in nature. • Below investment grade instruments (commonly referred to as “high yield” securities or “junk bonds”)
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