fs specialty lending fund
Core middle market credit strategy with an opportunistic edge
Daily NAV1
Daily NAV Change ($)
Premium/discount to nav (%)2
total shares outstanding
Past performance is not a guarantee of future results. On September 29, 2023, FS Energy & Power Fund was renamed FS Specialty Lending Fund as a part of a plan to transition the Fund’s investment strategy from investing primarily in private U.S. energy and power companies to a diversified credit strategy investing in private and public credit in a broader set of industries, sectors and subsectors.
- FSSL’s net asset value (NAV) per common share as of the date indicated is the NAV determined by FSSL for purposes of complying with the requirements of Section 23(b) of the Investment Company Act of 1940, as amended, and has not been approved by FSSL’s board of directors. FSSL’s NAV per common share may increase or decrease in the future and any such change may be material.
- The amount the Fund is trading above or below the reported NAV expressed as a percentage of NAV. When the Fund’s closing price is greater than the Fund’s NAV, it is said to be trading at a “Premium” and the percentage is expressed as a positive number. When the Fund’s closing price is less than the Fund’s NAV, it is said to be trading at a “Discount” and the percentage is expressed as a negative number. Closing price is determined using the last traded price on the NYSE and NAV is calculated daily.
- The annual distribution rate an investor would receive if the most recent Fund distribution and current Fund price stayed the same going forward. It is calculated by annualizing the most recent distribution and dividing by the Fund’s market price from the as-of-date.
returns
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Since inception
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Past performance is not a guarantee or a reliable indicator of future results. An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Shares may be worth more or less than original purchase price. Current performance may be lower or higher than the performance shown. Returns are calculated by determining the percentage change in NAV or market price (as applicable) in the specific period. The calculation assumes that all dividends and distributions, if any, have been reinvested. NAV and market price returns do not reflect broker sales charges, commissions or dealer manager fees, as applicable, in connection with the purchase or sales of Fund shares and includes the effect of any expense reductions. Returns for a period of less than one year are not annualized. Returns for a period of more than one year represents the average annual return. Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the fund, market conditions, supply and demand for the fund’s shares or changes in fund dividends and distributions.
Performance prior to October 28, 2025 reflects the performance of the predecessor BDC. The Fund's performance prior to September 29, 2023 was attained using a different investment strategy. The Fund has the same investment objectives and investment policies of the predecessor BDC (other than with respect to the portfolio criteria imposed on BDCs by the 1940 Act).
recent distributions history
As of April 22, 2025, FSSL’s Board of Trustees approved a 6-for-1 reverse share split, and distribution amounts prior to this date have been adjusted to reflect the split.Click hereto review the non-adjusted distributions.
- Special distributions: FSSL announced the suspension of regular monthly distributions following the payment of the March 31, 2020 distribution. Between Q2 2020 and Q2 2023, FSSL’s board of trustees and FSSL’s Advisor evaluated FSSL’s ability to pay special distributions on a quarterly basis based on market conditions and FSSL’s financial condition.
- Enhanced distributions: In Q2 2023, FSSL announced that it expects to provide enhanced quarterly distributions to shareholders commencing in Q3 2023 until the achievement of a long-term liquidity event at an annualized distribution rate of approximately 7.5% based on FSSL’s estimated net asset value at the time of declaration and increasing in subsequent years, subject to a maximum annualized rate of 15% of FSSL’s then-current net asset value beyond 2026 until the achievement of a long-term liquidity event. FSSL expects a portion of the enhanced distributions will represent a return of investor capital. There can be no assurance that FSSL will be able to make these distributions.
- The Q4 2023 distribution was split into two payments with approximately 90% of the total quarterly distribution paid on January 4, 2024. The remaining amount (representing approximately 10% of the total quarterly distribution) was paid January 26, 2024. As a reminder, the aggregate quarterly distribution is intended to represent an annualized distribution rate of approximately 7.5% based on the estimated net asset value as of December 31, 2023. The rationale for splitting the quarterly distribution into two payments is driven by both tax considerations and the timing of the year end valuation process.
- The Q4 2024 distribution was split into two payments with approximately 90% of the total quarterly distribution paid on January 2, 2025. The remaining amount (representing approximately 10% of the total quarterly distribution) was paid January 24, 2025. As a reminder, the aggregate quarterly distribution is intended to represent an annualized distribution rate of approximately 10% based on the estimated net asset value as of December 31, 2024. The rationale for splitting the quarterly distribution into two payments is driven by both tax considerations and the timing of the year end valuation process.
The payment of any type of future distributions on FSSL’s common shares is subject to the discretion of FSSL’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distribution.
global credit team
Cycle-tested specialists delivering alpha across private and public credit.
total AUM
portfolio companies
Floating rate assets1
senior secured debt2
top 10 holdings
years average duration3
PORTFOLIO HIGHLIGHTS4 As of 9/30/2025
Asset type
Top 10 holdings
Industry
Characteristics
- Based on fair value as of 9/30/2025. Includes floating rate assets on a look-through basis within FSSL’s Asset Based Finance investments.
- Based on fair value as of 9/30/2025. Senior secured debt includes first lien loans, second lien loans and senior secured bonds.
- As of 9/30/2025. Includes all debt investments. Duration measures the sensitivity of a fixed income investment’s price to changes in interest rates and is measured in years. A duration of 0.9 years suggests that a 1% rise in interest rates would equate to a 0.8% decline in FSSL’s NAV and vice versa as rates fall.
- These percentages may change over time depending on market conditions. Asset type, Industry and Top 10 holdings are as a percent of fair value.
OBJECTIVE
structure
ADVISOR
INCEPTION DATE1
LIQUIDITY
LISTING DATE
TAX REPORTING
TOTAL ANNUAL OPERATING EXPENSES
DISTRIBUTION FREQUENCY2
- On September 29, 2023, FS Energy & Power Fund was renamed FS Specialty Lending Fund as a part of a plan to transition the Fund’s investment strategy from investing primarily in private U.S. energy and power companies to a diversified credit strategy investing in private and public credit in a broader set of industries, sectors and subsectors.
- FSSL intends to begin paying monthly distributions in January 2026. The payment of future distributions on FSSL’s common shares is subject to the discretion of FSSL’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.
* The Fund commenced operations on July 18, 2011 as a closed-end management investment company that elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (1940 Act). On October 28, 2025 (the “Reorganization Date”), the Fund converted from a BDC to a closed-end management investment company registered under the 1940 Act. Such conversion was completed through a reorganization of the BDC with and into a newly formed registered closed-end fund. The closed-end fund retains the accounting and performance history of the predecessor BDC. References to the Fund or FSSL for dates or periods prior to the Reorganization Date refer to the predecessor BDC.
The following are some of the risks an investment in our common shares involves; however, you should carefully consider all of the information found in FSSL’s annual report on Form 10-K and other reports filed with the SEC.
- Because there is no public trading market for our common shares and we are not obligated to effectuate a liquidity event by a specified date, it will be difficult for you to sell your common shares. If you are able to sell your common shares before we complete a liquidity event, it is likely that you will receive less than what you paid for them. Our share repurchase program contains numerous restrictions. In addition, we have currently suspended our share repurchase program. If we conduct quarterly tender offers for our common shares in the future, only a limited number of our common shares will be eligible for repurchase. We may suspend or terminate the share repurchase program at any time.
- Our distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to us for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.
- Our previous investment policy was to invest, under normal circumstances, at least 80% of our total assets in securities of energy and power companies. The revenues, income (or losses) and valuations of energy and power companies can fluctuate suddenly and dramatically due to a number of environmental, regulatory, political and general market risks, which have historically impacted our financial performance, including our net asset value per share, and may continue to in the future.
- Our transition to a new investment policy will increase portfolio turnover, which will increase commission and transaction costs.
- We are subject to financial market risks, including changes in interest rates, which may have a substantial negative impact on our investments.
- An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies.
- Investing in middle market companies involves a number of significant risks, any one of which could have a material adverse effect on our operating results.
- A lack of liquidity in certain of our investments may adversely affect our business. We may be unable to sell our investments at favorable prices or at all.
- We are subject to financial market risks, including changes in interest rates, which may have a substantial negative impact on our investments.
- We may borrow funds to make investments, which increases the volatility of our investments and may increase the risks of investing in our securities.
- Our business model is dependent on bank relationships and recent strain on the banking system may adversely impact us.
- FSSL is a long-term investment for persons of adequate financial means who have no need for liquidity in their investment. To invest in FSSL, an investor must have either (i) a net worth of at least $70,000 and an annual gross income of at least $70,000, or (ii) a net worth of at least $250,000. Some states, such as Kansas, impose higher suitability standards.
- Portions of our distributions to shareholders were funded from the reimbursement of certain expenses, including through the offset of certain investment advisory fees, that are subject to repayment to our affiliate, Future Standard, and our future distributions may be funded from such offsets and reimbursements. Significant portions of these distributions may not be based on our investment performance, and such offsets and reimbursements by Future Standard may not continue in the future. If Future Standard had not agreed to reimburse certain of our expenses, including through the offset of certain advisory fees, significant portions of these distributions would have come from offering proceeds or borrowings. The repayment of amounts owed to Future Standard will reduce the future distributions to which you would otherwise be entitled.
- The global outbreak of COVID-19 (commonly known as the coronavirus) has caused volatility, severe market dislocations and liquidity constraints in many markets, including securities we hold, and has adversely affected our investments and operations. Such impacts may continue to adversely affect us, the performance of our investments and an investment in us.
- We expect that the recent market conditions may have a lasting and, in some instances, permanent impact on some of our portfolio companies as they struggle to meet covenant obligations and face insolvency in future periods. Poor performance or insolvency of our portfolio companies could have a material adverse impact on our financial condition and results of operations.
Statements included herein may constitute “forward-looking” statements as that term is defined in Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements with regard to future events or the future performance or operations of the Fund, including but not limited to, liquidity events. Words such as “intends,” “will,” “believes,” “expects,” and “may” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, geo-political risks, risks associated with possible disruption to the Fund’s operations or the economy generally due to hostilities, terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in the Fund’s operating area, unexpected costs, the ability of the Fund to complete the listing of the common shares on a national securities exchange, the price at which the common shares may trade on a national securities exchange, and failure to list the common shares on a national securities exchange, and such other factors that are disclosed in the Fund’s filings with the Securities and Exchange Commission (the “SEC”). The inclusion of forward-looking statements should not be regarded as a representation that any plans, estimates or expectations will be achieved. Any forward-looking statements speak only as of the date of this communication. Except as required by federal securities laws, the Fund undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any of these forward-looking statements