FS KKR Capital (FSK) investor relations material

Advisor and platform overview

• Manages ~$14 billion AUM as a publicly traded BDC within KKR Credit's $288 billion platform, leveraging a network of 2,700+ issuers and 250 professionals, with a diversified $11 billion capital structure.

• Focuses on upper middle market companies ($50–$150 million+ EBITDA), emphasizing defensive, non-cyclical sectors and rigorous portfolio monitoring.

• KKR Credit platform includes $145 billion in leveraged credit, $135 billion in private credit, and $8 billion in strategic investments.

• Private credit strategy emphasizes direct lending, asset-based finance, and junior capital, with strong alignment through $2.5 billion of KKR capital committed.

• Leverages KKR's global resources, including private equity, capital markets, and operational improvement teams, for origination and due diligence advantages.

Investment philosophy and process

• Employs a disciplined, PE-style due diligence process with a focus on downside and structural protections.

• Global, multi-channel origination and a broad network enable total solutions and repeat relationships; 66% of originations come from existing portfolio companies.

• Consistent portfolio construction and risk management, with ongoing monitoring and quarterly reviews.

• Targets upper middle market borrowers, which historically show lower default rates and stronger credit profiles.

Portfolio composition and performance

• $13.0 billion portfolio fair value across 232 companies, with 62.4% in senior secured loans and 13% in asset-based finance as of December 31, 2025.

• Median portfolio company EBITDA is $132 million with 5.8x leverage; top 10 holdings represent 19.4% of fair value.

• Weighted average yield on accruing debt investments is 10.0%, with a non-accrual rate at fair value of 3.4%.

• Asset-based finance investments are diversified, backed by pools of financial and hard assets, and managed by a specialized team.