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Here are 1-3 brief analogies for FS KKR Capital (FSK):

• Blackstone for private middle-market debt.
• JPMorgan Chase for private middle-market company loans.
• Wells Fargo for private companies seeking structured financing.

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• Senior Secured Debt: Provides loans secured by a company's assets, including first lien and second lien positions.
• Subordinated Debt (Mezzanine Loans): Offers less senior loans that are repaid after secured debt, often with higher interest rates.
• Equity Investments: Acquires minority stakes in companies through common or preferred equity, often alongside debt investments or through warrants/options.
• Corporate Bonds & Similar Debt Securities: Opportunistically invests in publicly traded or privately placed corporate debt.

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FS KKR Capital Corp. (FSK) is a business development company (BDC) that specializes in providing debt and equity financing to other companies. Therefore, its "customers" are the businesses to which it extends loans and makes investments.

FSK primarily serves the following category of customers:

• Private Middle Market U.S. Companies: The firm invests primarily in the senior secured debt and, to a lesser extent, subordinated debt of private middle market U.S. companies. It focuses on providing customized credit solutions to private upper middle market companies with annual EBITDA of $50 million to $100 million and annual revenue between $10 million to $2.5 billion.

As FSK's business model involves providing capital to private companies, the specific names and symbols of its individual customer companies (borrowers/investees) are typically not publicly disclosed in the same manner as direct product or service sales, and they are generally private entities without public symbols.

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Michael C. Forman, Chairman and Chief Executive Officer

Michael C. Forman is the Chairman and Chief Executive Officer of FS KKR Capital Corp. He co-founded FS Investments in 2007, the sponsor of FSK and affiliated vehicles, and has led it since its founding. Prior to founding FS Investments, he established a private equity and real estate investment firm. Mr. Forman began his career as an attorney in the Corporate and Securities Department at Klehr Harrison Harvey Branzburg LLP. He is also an active entrepreneur who has founded several companies in the gaming, specialty finance, and asset management industries.

Steven C. Lilly, Chief Financial Officer

Steven C. Lilly is the Chief Financial Officer of FS KKR Capital Corp. He joined FS Investments as a Managing Director in October 2019 and assumed the CFO role in mid-November 2019. Prior to this, Mr. Lilly served for 13 years as Chief Financial Officer of Triangle Capital Corporation, a publicly traded business development company (BDC) that was sold to Benefit Street Partners and Barings, LLC in 2018. During his tenure at Triangle, he built the company's financial and operating infrastructure and oversaw listings on Nasdaq and the New York Stock Exchange. He also led all corporate M&A and strategic processes involving the BDC. Before Triangle, he was Senior Vice President of Finance & Treasurer at SpectraSite Communications, a publicly traded wireless tower company that was acquired by American Tower Corporation in 2005.

Daniel Pietrzak, President and Chief Investment Officer

Daniel Pietrzak is the President and Chief Investment Officer of FS KKR Capital Corp. He joined KKR in 2016 and is a Partner and the Global Head of Private Credit, also serving as a portfolio manager for KKR's private credit funds and portfolios. Mr. Pietrzak previously held the role of co-head of Deutsche Bank's structured finance business across the Americas and Europe as a managing director. His earlier career included various roles in the credit businesses of Societe Generale and CIBC World Markets, and he started at Price Waterhouse in New York.

Brian G. Gerson, Co-President

Brian G. Gerson serves as Co-President of FS KKR Capital Corp. and Head of Private Credit at FS Investments. He has over 25 years of experience in credit investing and corporate lending, with particular expertise in BDC lending. Before joining FS Investments, he was Group Head and Managing Director at LStar Capital, the credit affiliate of Lone Star Funds. Mr. Gerson was also a founding member and partner of Solar Capital Partners. Earlier in his career, he was a Managing Director at CIBC World Markets, which acquired his previous firm, the Argosy Group. He began his career in corporate finance at Merrill Lynch & Co. Note: Mr. Gerson has notified the company of his resignation as Co-President, effective June 28, 2025, to pursue other professional opportunities. He will continue to serve as a senior advisor to Franklin Square Holdings, L.P.

William C. Goebel, Chief Accounting Officer

William C. Goebel is the Chief Accounting Officer of FS KKR Capital Corp., a position he has held since October 2019. He previously served as FSK's Chief Financial Officer from March 2011 to October 2019 and as Treasurer from April 2018 to June 2020. Mr. Goebel is also a Managing Director at FS Investments. Before joining FS Investments, he was a senior manager in the asset management practice at Ernst & Young LLP from 2003 to 2011, where his responsibilities included auditing regulated investment companies, private investment partnerships, investment advisers, and broker-dealers. He began his career in public accounting at Tait, Weller and Baker LLP in 1997.

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Key Risks to FS KKR Capital (FSK)

1. Deteriorating Asset Quality and Rising Non-Accruals: FS KKR Capital faces significant risk from a deterioration in the credit quality of its loan portfolio, evidenced by rising non-accrual percentages. This means a greater portion of its investments are not generating income, directly impacting profitability and asset value.
2. Pressure on Net Investment Income (NII) from Interest Rate Fluctuations: As a business development company with a high percentage of variable-rate loans (88.1% as of Q4 2025), FSK's net investment income is highly sensitive to changes in base interest rates. Expectations of lower base rates and tighter lending spreads are putting persistent pressure on its revenue and NII, challenging dividend coverage and overall profitability.
3. Exposure to Market Volatility and Economic Downturns: FSK primarily invests in the debt of private middle-market U.S. companies. These companies are more susceptible to economic recessions or downturns, which can impair their ability to meet debt obligations, leading to increased defaults and potential losses for FSK. The illiquid nature of many of these private investments further exacerbates this risk during periods of market stress.

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The addressable markets for FS KKR Capital's (FSK) main products and services are primarily within the U.S. private credit and middle-market lending sectors. The U.S. private credit market has seen significant growth in recent years.

Currently, the U.S. private credit market is estimated to be approximately $1.3 trillion and is expected to continue expanding in 2026. Other estimates place the U.S. private credit market between $1.5 trillion and $2.1 trillion, representing about three-quarters of the global private credit market. As of September 30, 2024, private corporate loans, a key component of private credit, reached $1.7 trillion. Projections for middle-market sponsor lending indicate it could potentially reach $2 trillion in 2026.

More specifically focusing on middle-market direct lending, the market for U.S. middle-market direct loans was estimated at $1.0 trillion as of March 31, 2022. Some analyses also suggest a broader "potential addressable market" for private credit in the United States could exceed $30 trillion, indicating substantial growth potential.

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For FS KKR Capital (symbol: FSK), several factors are expected to drive future revenue growth over the next 2-3 years, despite recent market challenges:

1. Growth in Investment Originations and Portfolio Size: FS KKR Capital's primary business is investing in debt securities of private middle-market U.S. companies. The company aims to grow its investment portfolio through new originations, including direct investments and secondary market transactions. While facing portfolio valuation headwinds, FSK achieved its goal for total originations in 2025 and continues to pursue growth through its Credit Opportunities joint venture, which should support Net Asset Value (NAV) growth.
2. Improvement in Portfolio Credit Quality and Reduction in Non-Accruals: A significant driver of revenue growth will be an improvement in the credit quality of its portfolio companies and a subsequent reduction in non-accruing investments. As non-accruing loans begin to generate interest income again, FSK's overall interest income, a key component of its revenue, will increase.
3. Optimization of Capital Structure and Investment Strategy: FSK has strategic initiatives in place to optimize its capital structure and diversify its investment portfolio. This includes focusing on first lien and asset-based finance investments. These efforts are designed to enhance capital deployment efficiency and improve risk-adjusted returns, which can contribute to future revenue growth.
4. Leveraging the KKR Platform and Strategic Partnerships for Deal Sourcing: The affiliation with KKR & Co. provides FS KKR Capital with significant advantages in sourcing and managing investments. KKR's extensive resources, intellectual capital, and strategic partnerships, such as with KKR Credit, offer FSK a competitive edge in accessing a broad spectrum of investment opportunities and expertise, potentially leading to increased deal flow and revenue.
5. Favorable Shifts in Interest Rates and Credit Spreads: Given that a substantial portion of FSK's debt investments are floating-rate, favorable movements in base interest rates and credit spreads could positively impact its interest income. While recent trends have shown lower loan yields and tighter spreads, a reversal in these conditions would directly boost revenue.

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Share Repurchases

• On June 16, 2021, FS KKR Capital Corp. announced a $100 million share repurchase program.
• This program allows FSK to repurchase its outstanding common stock in the open market at prices below the current net asset value per share.

Share Issuance

• In September 2025, FS KKR Capital Corp. completed a public offering of $400 million in 6.125% Unsecured Notes Due 2031.
• As part of the merger with FS KKR Capital Corp. II on June 16, 2021, FSKR shareholders received 0.9498 FSK shares for each FSKR share held.
• In the fourth quarter of 2025, FSK closed KKR FSK CLO 3, issuing $363 million of notes to third parties.

Inbound Investments

• The merger of FS KKR Capital Corp. II into FS KKR Capital Corp. on June 16, 2021, resulted in the combined company operating as FS KKR Capital Corp., increasing its market reach and balance sheet strength.

Outbound Investments

• FS KKR Capital Corp. originated $1.1 billion in new investments during Q3 2025.
• For Q4 2025, the company reported $5.6 billion in originations of first lien and asset-based finance investments.
• As of December 31, 2025, the fair value of FS KKR Capital Corp.'s investment portfolio totaled $13.0 billion, with 62.4% invested in senior secured securities.