KKR FS Income Trust Announces Share Repurchase Offer

Shareholders are invited to tender up to 5% of outstanding shares by December 30, 2024, at NAV.

December 03, 2024

KKR FS Income Trust Offers Shareholders Limited Repurchase Opportunity

KKR FS Income Trust, an externally managed closed-end investment entity regulated under the Investment Company Act of 1940, has announced a tender offer for up to 5% of its outstanding common shares. The offer aims to purchase 1,043,143 shares, aligning with its strategy to enhance shareholder liquidity while maintaining its structured investment approach.

Company Overview

Headquartered in Philadelphia, KKR FS Income Trust is a business development company managed by FS/KKR Advisor, LLC. The firm primarily focuses on investments in private debt securities, targeting opportunities in middle-market firms. As of September 30, 2024, it reported 20,862,875 outstanding shares of beneficial interest.

Despite being a public reporting company, KKR FS Income Trust shares are not traded on any public exchange, limiting shareholders' liquidity options. This tender offer underscores the company's commitment to providing liquidity mechanisms for its investors.

Terms of the Offer

The tender offer allows shareholders to sell shares at their net asset value (NAV) determined as of December 31, 2024. Shareholders have until December 30, 2024, to tender shares. Payments will be processed within 65 days of the valuation date through checks, ACH, or wire transfers. The offer's acceptance and payment procedures ensure transparency and fair treatment for participants.

Shareholders who wish to withdraw their tendered shares have the option to do so before the December 30 deadline, aligning with the company's flexible policy framework.

Rationale for the Offer

The move aligns with KKR FS Income Trust's ongoing efforts to enhance shareholder value and provide liquidity within its portfolio strategy. Regularly evaluating repurchase opportunities, the board is guided by market conditions and shareholder interests. While the tender offer is a periodic initiative, it reflects the company's strategic intent to balance investment growth with investor returns.