#USA #Philadelphia #Middle Market #FS Investments #Private Markets Fund

FS MVP Private Markets Fund Achieves Significant Milestone

On February 5, 2025, FS Investments announced a remarkable achievement: its FS MVP Private Markets Fund, which focuses on private middle market companies in the U.S., has marked its three-year anniversary with impressive performance metrics. The Fund has successfully surpassed $1 billion in assets under management, indicating strong investor demand and solid returns.

Strong Performance Metrics

The Class I shares of the Fund returned 10.49% in 2024, alongside an annual return of 12.99% since its inception in July 2021. Notably, these figures indicate that the Fund has outperformed the benchmark Russell 2000 and S&P 500 indices by substantial margins of 1,260 and 193 basis points, respectively, as of December 31, 2024. These results are attributed to a focused investment strategy targeting private U.S. middle market companies through direct equity investments and secondaries.

The middle market has a storied history of generating alpha in private equity. Studies have shown that top-quartile managers in this segment consistently outperform larger cap managers by about 382 basis points annually, reinforcing the value proposition of investing in this sector.

Insights from FS Investments Leadership

Brooks Lindberg, Managing Director and Portfolio Manager of the Fund, commented, "We are pleased to deliver another year of strong performance for our shareholders, driven by our disciplined focus on private U.S. middle market companies." He emphasized the importance of the Fund’s relationships with key sponsors in the U.S. middle market that enhance the firm’s underwriting processes, enabling the identification of high-quality investment opportunities.

Dustin Ackerman, Senior Vice President and Co-Manager of the Fund, added, "The U.S. middle market provides a compelling opportunity to access the growth engine of the U.S. economy at attractive valuations compared to the broader public markets." His remarks underscore the significant revenue and margin growth being exhibited by middle market firms, which frequently outpaces that of their public counterparties.

About FS Investments

Founded with a commitment to superior performance, FS Investments is an alternative asset manager that oversees more than $83 billion in assets across various clients, including institutions and individual investors. The firm prides itself on providing innovative investment and capital solutions while managing a range of alternative asset classes. The presence of over 500 employees and offices across the U.S., Europe, and Asia underscores its global operational footprint.

The Fund's investment objective is to generate long-term capital appreciation through a diverse portfolio of private market investments, primarily in private equity, as well as limited exposure to private credit investments. By focusing predominantly on mid-sized companies in the U.S., the Fund can capitalize on a wealth of growth opportunities.

Considerations for Investors

Despite the Fund's successful history, potential investors should be aware that investing in private equity entails a high degree of risk. The past performance of the Fund is not indicative of future results, and interested parties are encouraged to review the Fund’s prospectus for comprehensive details on risks and investment objectives.

This continued success of the FS MVP Private Markets Fund not only highlights a strategic advantage in the private equity landscape but also reflects the company’s adeptness in navigating market dynamics to realize investor value.