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FS Credit Income Fund Boosts Distribution Rate for 2025

FS Investments, a prominent alternative asset manager with over $83 billion in assets under management, recently revealed an increase in the distribution rate for the FS Credit Income Fund, an initiative aimed at enhancing returns for its investors. The decision comes as the Fund prepares for the upcoming monthly distribution payment scheduled for January 31, 2025.

In a significant development, the annualized distribution rate for Class I shares is set to rise to approximately 10%, based on the Fund's net asset value (NAV) calculated as of December 31, 2024. This marks an approximate increase of 17%, highlighting the Fund's robust performance and resilient investment strategies.

The FS Credit Income Fund delivered a return of 9.52% in 2024, successfully outperforming both high-yield bonds and leveraged loans by 130 basis points and 57 basis points, respectively. Such outstanding performance is a testament to the Fund's strategic focus on opportunistic credit investments across both private and public markets.

Andrew Beckman, the Head of FS Investments' Global Credit team and the portfolio manager for the Fund, noted the importance of flexibility in investment approaches. He emphasized that the ability to maneuver across less trafficked public markets and explore middle-market private companies is crucial for delivering competitive returns in today's challenging financial landscape. Beckman stated, "We entered 2025 with a strong liquidity position to grow our allocation to private credit and take advantage of attractive investment opportunities that may arise from periods of volatility."

The FS Credit Income Fund aims to strategically position itself in the market by dynamically investing in the most favorable relative value opportunities, targeting an attractive blend of current income and capital appreciation. By focusing on assets often overlooked by conventional investment strategies, the Fund is carving out a unique space in the alternative credit landscape.

FS Investments stands out as a global alternative asset manager, committed to delivering superior performance and innovative investment solutions. With a diverse portfolio that caters to a range of clients including institutional investors and individual stakeholders, the firm’s expertise spans various alternative asset classes and strategies.

The company's commitment to high-performance culture is evident in its broad platform and flexible capital solutions that provide value not only to its clients but also to portfolio companies and general partners. With a dedicated workforce of over 500 professionals operating across its offices in the U.S., Europe, and Asia, FS Investments continues to emphasize its role as a trusted partner in the investment community.

As shareholders eagerly await the upcoming distribution, it is crucial to consider FS Credit Income Fund's promising trajectory. With substantial risk factors inherent in alternative investments, potential investors are advised to thoroughly review the Fund's objectives, associated risks, and expenses before making investment decisions. For more detailed insights, the Fund's prospectus and additional reports can be accessed via the FS Investments website.

In summary, FS Investments is positioning the FS Credit Income Fund for continued success and competitive returns in a landscape characterized by dynamic market conditions. The increase in the distribution rate is not only a reflection of past performance but also a strategic move geared towards securing future profitability for its stakeholders.

As the financial market evolves, the dedicated efforts of FS Investments remain focused on innovation, performance, and commitment to client value.