FS Specialty Lending Fund Declares New Shareholder Distribution
The fund plans to issue quarterly updates on the tax composition of its payouts, though final details await year-end determination.
April 22, 2025
FS Specialty Lending Fund Issues New Dividend Ahead of Q2 Close
FS Specialty Lending Fund is issuing a cash distribution of $0.1053 per share, with a payment date set for April 23, 2025. Shareholders must be on record as of April 22 to receive it. The fund’s board approved the distribution on April 21, as part of its regular commitment to returning value to investors.
This move reflects the fund’s ongoing approach to managing liquidity and portfolio cash flows. While the amount is fixed, the final tax classification of the distribution won’t be known until the fiscal year ends. The fund will provide quarterly estimates on what portion of each payout qualifies as ordinary income, but the complete breakdown will come later through Form 1099-DIV.
Flexible Funding Sources
Future distributions will continue to be subject to board discretion, market conditions, and regulatory limits. There’s no set formula or guarantee around the amount or timing. Instead, the fund draws on a range of available sources to support these payments:
- Net investment income
- Capital gains
- Proceeds from asset sales (capital and non-capital)
- Dividends and other income from equity investments
- Borrowings, if needed
There are no hard caps on how those sources are allocated. This flexibility helps the fund manage its cash distribution strategy across different market scenarios. That said, not every dollar comes from income generated during the period, so investors should keep that in mind when reviewing performance or yield.
Forward-Looking Considerations
The report also includes forward-looking statements tied to future plans and outlook. These statements are based on current expectations and subject to change. The company does not commit to updating these projections unless required by law.
FS Specialty Lending Fund submitted the disclosure through its General Counsel, Stephen S. Sypherd. With the second quarter now underway, this announcement sets the tone for how the fund is positioning itself through midyear. Investors will want to watch for the next quarterly update and year-end tax documentation to understand the full impact of the payout.
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