FS Investments Finances Acquisition of Cadence Education by Morgan Stanley Capital Partners
FS Investments, a leading alternative asset manager formerly known as Franklin Square, originated a $120 million senior secured unitranche loan to support investment funds managed by Morgan Stanley Global Private Equity’s acquisition of Cadence Education Inc.
Cadence Education is a provider of early childhood education in the U.S., focusing on the care and curriculum-based education of children between the ages of six weeks and 12 years old. The company’s national platform of 150-plus schools has the capacity to serve more than 20,000 students across 20 different states.
The senior secured financing was provided by four business development companies, including FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II, FS Investment Corporation III, and FS Investment Corporation IV. The BDCs are managed by affiliates of FS Investments and sub-advised by an affiliate of GSO Capital Partners LP. GSO Capital Partners LP is the global credit investment platform of Blackstone, one of the world’s leading investment firms.
FS Investments, which currently manages six funds with more than $18 billion in assets under management, was founded in 2007 as Franklin Square Capital Partners. Headquartered in Philadelphia with offices in Orlando and Washington, DC, FS Investments is the largest manager of BDCs with approximately $16.5 billion in BDC assets under management, as of June 30, 2016.
