In today’s video, we’re going to take a look at FS KKR Capital Corporation, ticker symbol FSK. This was requested by a handful of people over on our Patreon, and I realized that I’ve never really talked about this company before. FS is currently the second largest publicly traded business development company, so I guess it’s strange I’ve never done an in-depth look into it since I talk about Ares Capital and Blue Owl Capital, the largest and third largest BDCs, respectively, pretty consistently. Another reason I think people have become interested in this stock is because they’ve been paying so many special dividends this year, probably more than any other company I’ve seen. So today, let’s take a closer look at this company and see if it’s a solid consideration for high income.

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. They provide customized credit solutions to private middle-market U.S. companies. They’re an externally managed BDC that invests primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle-market U.S. companies. FS seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. They also seek to invest in first-liability senior secured loans, second-liability secured loans, and, to a lesser extent, subordinated loans or mezzanine loans. The company was founded in 2007, so they’re one of a few that existed before the financial crisis.

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