FS KKR Capital Q3 net investment income falls to $127M
Investments at fair value were $11.306 billion at September 30, 2026, while debt was $6.231 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
FS KKR Capital Corp (FSK) reported third-quarter 2026 total investment income of $294 million, compared with $373 million a year earlier. Net investment income was $127 million versus $159 million, and the increase in net assets resulting from operations was $73 million versus $214 million. Earnings per common share were $0.26, compared with $0.76.
At September 30, 2026, investments at fair value were $11.306 billion, debt was $6.231 billion and net asset value per common share was $18.28; at December 31, 2025, those figures were $13.009 billion, $7.634 billion and $20.89, respectively. For the nine months ended September 30, 2026, operations resulted in a $402 million decrease in net assets, versus a $125 million increase a year earlier. Operating activities provided $1.425 billion in cash, compared with $397 million. Financing activities used $1.461 billion and included $150 million from issuing Series A preferred stock, $72 million in common-stock repurchases and $252 million in distributions to common stockholders.
1 point · 0 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointOperating cash flow was $1.425 billion for nine months, versus $397 million.
Negative
- Major pointNine-month operations produced a $402 million decrease in net assets, versus a $125 million increase. 13% of market cap
- Moderate pointQuarterly net investment income was $127 million, versus $159 million a year earlier.
Filing Explained
At September 30, 2026, FSK had 6 million Series A cumulative convertible perpetual preferred shares outstanding, each with a $25 liquidation preference. If conversion results in newly issued common shares, the share count would rise and existing holders’ ownership percentages would fall; the balance sheet lists the shares as preferred stock.
Key Figures
Total investment income: $294 million
Net investment income: $127 million
Net increase in net assets resulting from operations: $73 million
+4 more
7 metrics
Total investment income
$294 million
Three months ended September 30, 2026; $373 million in 2025
Net investment income
$127 million
Three months ended September 30, 2026; $159 million in 2025
Net increase in net assets resulting from operations
$73 million
Three months ended September 30, 2026; $214 million in 2025
Cash provided by operating activities
$1.425 billion
Nine months ended September 30, 2026; $397 million in 2025
Net asset value per share of common stock
$18.28 per share
At September 30, 2026; $20.89 per share at December 31, 2025
Debt
$6.231 billion
At September 30, 2026; $7.634 billion at December 31, 2025
Series A preferred stock issued
$150 million
Nine months ended September 30, 2026
Key Terms
Paid-in-kind interest income, Net asset value per share, Subordinated income incentive fees, Cumulative Convertible Perpetual Preferred Stock, Series A
4 terms
Paid-in-kind interest income financial
"Paid-in-kind interest income"
Paid-in-kind interest income is interest a lender or bondholder earns not in cash but by having the borrower add the unpaid interest to the loan or bond balance, so the amount owed grows over time. Like getting paid with an extra IOU instead of money in hand, it boosts the investor’s recorded return but does not provide immediate cash, affecting cash flow, risk of default and how you value or tax the investment.
Net asset value per share financial
"Net asset value per share of common stock at period end"
Net asset value per share is the total value of a fund’s assets minus its liabilities, divided by the number of outstanding shares, so it represents what each share would be worth if the fund sold everything and paid its debts. Investors use it like a per-share “break-up” price to compare against the market trading price — if shares trade below NAV per share they may be seen as discounted, above it as a premium.
Subordinated income incentive fees financial
"Subordinated income incentive fees"
Cumulative Convertible Perpetual Preferred Stock, Series A financial
"Issuance of Cumulative Convertible Perpetual Preferred Stock, Series A"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was FSK's third-quarter 2026 net investment income?
FSK reported $127 million of net investment income for the three months ended September 30, 2026, compared with $159 million for the same period in 2025. Total investment income was $294 million, versus $373 million.
How much cash did FSK generate from operations in the first nine months of 2026?
Operating activities provided $1.425 billion in cash during the nine months ended September 30, 2026, compared with $397 million in the same period of 2025.
How much Series A preferred stock did FSK issue in 2026?
FSK issued $150 million of Cumulative Convertible Perpetual Preferred Stock, Series A, during the nine months ended September 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________________
FORM 10-Q
_________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2026
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
COMMISSION FILE NUMBER: 814-00757
_________________________________________________
(Exact name of registrant as specified in its charter)
_________________________________________________
| (State of Incorporation) | (I.R.S. Employer Identification Number) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (215 ) 495-1150
_______________________________________
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
x | Accelerated filer | ¨ | |||||||||
| Non-accelerated filer | ¨ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x .
| Securities registered pursuant to Section 12(b) of the Act. | ||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
There were 271,986,599 shares of the registrant’s common stock outstanding as of October 30, 2026.
Table of Contents
TABLE OF CONTENTS
| Page | ||||||||
PART I—FINANCIAL INFORMATION | ||||||||
| ITEM 1. | FINANCIAL STATEMENTS | 1 | ||||||
Consolidated Balance Sheets as of September 30, 2026 (Unaudited) and December 31, 2025 | 1 | |||||||
Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025 | 2 | |||||||
Unaudited Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2026 and 2025 | 4 | |||||||
Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025 | 5 | |||||||
Consolidated Schedules of Investments as of September 30, 2026 (Unaudited) and December 31, 2025 | 6 | |||||||
Notes to Unaudited Consolidated Financial Statements | 55 | |||||||
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 88 | ||||||
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 104 | ||||||
| ITEM 4. | CONTROLS AND PROCEDURES | 107 | ||||||
PART II—OTHER INFORMATION | ||||||||
| ITEM 1. | LEGAL PROCEEDINGS | 108 | ||||||
| ITEM 1A. | RISK FACTORS | 108 | ||||||
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 109 | ||||||
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 110 | ||||||
| ITEM 4. | MINE SAFETY DISCLOSURES | 110 | ||||||
| ITEM 5. | OTHER INFORMATION | 110 | ||||||
| ITEM 6. | EXHIBITS | 114 | ||||||
SIGNATURES | 115 | |||||||
Table of Contents
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
FS KKR Capital Corp.
Consolidated Balance Sheets
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| September 30, 2026 | December 31, 2025 | |||||||||||||
| (Unaudited) | ||||||||||||||
| Assets | ||||||||||||||
| Investments, at fair value | ||||||||||||||
Non-controlled/unaffiliated investments (amortized cost—$ | $ | $ | ||||||||||||
Non-controlled/affiliated investments (amortized cost—$ | ||||||||||||||
Controlled/affiliated investments (amortized cost—$ | ||||||||||||||
Total investments, at fair value (amortized cost—$ | ||||||||||||||
| Cash and cash equivalents | ||||||||||||||
| Restricted cash | ||||||||||||||
Foreign currency, at fair value (cost—$ | ||||||||||||||
| Receivable for investments sold and repaid | ||||||||||||||
| Income receivable | ||||||||||||||
| Unrealized appreciation on foreign currency forward contracts | ||||||||||||||
| Deferred financing costs | ||||||||||||||
| Prepaid expenses and other assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities | ||||||||||||||
| Payable for investments purchased | $ | $ | ||||||||||||
Debt (net of deferred financing costs and discount of $ | ||||||||||||||
| Unrealized depreciation on foreign currency forward contracts | ||||||||||||||
| Stockholder distributions payable | ||||||||||||||
| Management fees payable | ||||||||||||||
| Subordinated income incentive fees payable | ||||||||||||||
| Administrative services expense payable | ||||||||||||||
| Interest payable | ||||||||||||||
| Other accrued expenses and liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
Commitments and contingencies (Note 10) | ||||||||||||||
Preferred stock, $ | ||||||||||||||
| Stockholders’ equity | ||||||||||||||
Common stock, $ | ||||||||||||||
| Capital in excess of par value | ||||||||||||||
| Retained earnings (accumulated deficit) | ( | ( | ||||||||||||
| Total stockholders’ equity | ||||||||||||||
| Total liabilities, preferred stock and stockholders’ equity | $ | $ | ||||||||||||
| Net asset value per share of common stock at period end | $ | $ | ||||||||||||
See notes to unaudited consolidated financial statements.
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FS KKR Capital Corp.
Unaudited Consolidated Statements of Operations
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Investment income | ||||||||||||||||||||||||||
| From non-controlled/unaffiliated investments: | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Paid-in-kind interest income | ||||||||||||||||||||||||||
| Fee income | ||||||||||||||||||||||||||
| Dividend and other income | ||||||||||||||||||||||||||
| From non-controlled/affiliated investments: | ||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Paid-in-kind interest income | ||||||||||||||||||||||||||
| Fee income | ||||||||||||||||||||||||||
| Dividend and other income | ||||||||||||||||||||||||||
| From controlled/affiliated investments: | ||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Paid-in-kind interest income | ||||||||||||||||||||||||||
| Fee income | ||||||||||||||||||||||||||
| Dividend and other income | ||||||||||||||||||||||||||
| Total investment income | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Management fees | ||||||||||||||||||||||||||
| Subordinated income incentive fees | ||||||||||||||||||||||||||
| Administrative services expenses | ||||||||||||||||||||||||||
| Accounting and administrative fees | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Other general and administrative expenses | ||||||||||||||||||||||||||
| Total operating expenses | ||||||||||||||||||||||||||
| Subordinated income incentive fee waiver | ( | ( | ||||||||||||||||||||||||
| Net expenses | ||||||||||||||||||||||||||
| Net investment income before taxes | ||||||||||||||||||||||||||
| Excise taxes | ||||||||||||||||||||||||||
| Net investment income | ||||||||||||||||||||||||||
| Realized and unrealized gain/loss | ||||||||||||||||||||||||||
| Net realized gain (loss) on investments: | ||||||||||||||||||||||||||
| Non-controlled/unaffiliated investments | ( | ( | ( | ( | ||||||||||||||||||||||
| Non-controlled/affiliated investments | ( | ( | ( | |||||||||||||||||||||||
| Controlled/affiliated investments | ( | ( | ( | |||||||||||||||||||||||
| Net realized gain (loss) on foreign currency forward contracts | ( | ( | ( | |||||||||||||||||||||||
| Net realized gain (loss) on foreign currency | ( | ( | ( | ( | ||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments: | ||||||||||||||||||||||||||
| Non-controlled/unaffiliated investments | ( | ( | ||||||||||||||||||||||||
| Non-controlled/affiliated investments | ( | ( | ||||||||||||||||||||||||
| Controlled/affiliated investments | ( | ( | ( | |||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currency forward contracts | ( | |||||||||||||||||||||||||
| Net change in unrealized gain (loss) on foreign currency | ( | |||||||||||||||||||||||||
| Total net realized and unrealized gain (loss) | ( | ( | ( | |||||||||||||||||||||||
| Provision for taxes on investments | ( | |||||||||||||||||||||||||
| Realized loss on extinguishment of debt | ( | ( | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | ( | |||||||||||||||||||||||||
| Distributions to preferred stockholders | ( | ( | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations applicable to common stockholders | $ | $ | $ | ( | $ | |||||||||||||||||||||
See notes to unaudited consolidated financial statements.
2
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FS KKR Capital Corp.
Unaudited Consolidated Statements of Operations (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per share of common stock)—basic | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per share of common stock)—diluted | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Weighted average shares of common stock outstanding—basic | ||||||||||||||||||||||||||
| Weighted average shares of common stock outstanding—diluted | ||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
3
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FS KKR Capital Corp.
Unaudited Consolidated Statements of Changes in Net Assets
(dollar amounts in millions unless otherwise noted)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Operations | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | $ | $ | $ | ||||||||||||||||||||||
| Net realized gain (loss) on investments, foreign currency forward contracts and foreign currency | ( | ( | ( | ( | ||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency forward contracts | ( | ( | ||||||||||||||||||||||||
| Net change in unrealized gain (loss) on foreign currency | ( | |||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | ( | |||||||||||||||||||||||||
| Stockholder distributions | ||||||||||||||||||||||||||
| Distributions to common stockholders | ( | ( | ( | ( | ||||||||||||||||||||||
| Distributions to preferred stockholders | ( | ( | ||||||||||||||||||||||||
| Net decrease in net assets resulting from stockholder distributions | ( | ( | ( | ( | ||||||||||||||||||||||
| Capital share transactions | ||||||||||||||||||||||||||
| Repurchases of common stock | ( | ( | ||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | ( | ( | ||||||||||||||||||||||||
| Total increase (decrease) in net assets | ( | ( | ( | |||||||||||||||||||||||
| Net assets at beginning of period | ||||||||||||||||||||||||||
| Net assets at end of period | $ | $ | $ | $ | ||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
4
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Statements of Cash Flows
(dollar amounts in millions unless otherwise noted)
| Nine Months Ended | |||||||||||||||||
| September 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | ( | $ | ||||||||||||||
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||||||||||||
| Purchases of investments | ( | ( | |||||||||||||||
| Paid-in-kind interest | ( | ( | |||||||||||||||
| Proceeds from sales and repayments of investments | |||||||||||||||||
| Net realized (gain) loss on investments | |||||||||||||||||
| Net change in unrealized (appreciation) depreciation on investments | |||||||||||||||||
| Net change in unrealized (appreciation) depreciation on foreign currency forward contracts | ( | ||||||||||||||||
| Realized loss on extinguishment of debt | |||||||||||||||||
| Accretion of discount | ( | ( | |||||||||||||||
| Amortization of deferred financing costs and discount | |||||||||||||||||
Net change in unrealized (appreciation) depreciation on foreign currency translation | ( | ||||||||||||||||
| (Increase) decrease in receivable for investments sold and repaid | |||||||||||||||||
| (Increase) decrease in income receivable | ( | ||||||||||||||||
| (Increase) decrease in prepaid expenses and other assets | |||||||||||||||||
| Increase (decrease) in management fees payable | ( | ( | |||||||||||||||
| Increase (decrease) in subordinated income incentive fees payable | ( | ( | |||||||||||||||
| Increase (decrease) in administrative services expense payable | |||||||||||||||||
| Increase (decrease) in interest payable | ( | ( | |||||||||||||||
| Increase (decrease) in other accrued expenses and liabilities | ( | ( | |||||||||||||||
| Net cash provided by (used in) operating activities | |||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Issuance of Cumulative Convertible Perpetual Preferred Stock, Series A | |||||||||||||||||
| Repurchases of common stock | ( | ||||||||||||||||
| Distributions to common stockholders | ( | ( | |||||||||||||||
| Distributions to preferred stockholders | ( | ||||||||||||||||
| Borrowings under financing arrangements | |||||||||||||||||
| Repayments of financing arrangements | ( | ( | |||||||||||||||
| Deferred financing costs paid | ( | ( | |||||||||||||||
| Net cash provided by (used in) financing activities | ( | ( | |||||||||||||||
Effect of exchange rate changes on cash | |||||||||||||||||
| Total increase (decrease) in cash, cash equivalents, restricted cash and foreign currency | ( | ( | |||||||||||||||
| Cash, cash equivalents, restricted cash and foreign currency at beginning of period | |||||||||||||||||
Cash, cash equivalents, restricted cash and foreign currency at end of period(1) | $ | $ | |||||||||||||||
| Supplemental information | |||||||||||||||||
| Federal income taxes paid during the period | $ | $ | |||||||||||||||
| Interest paid during the period | $ | $ | |||||||||||||||
______________
(1)As of September 30, 2026, includes cash and cash equivalents of $102 , restricted cash of $61 and foreign currency of $9 . Restricted cash is the cash collateral required to be posted pursuant to the Company’s derivative contracts.
Supplemental disclosure of non-cash operating activities:
During the nine months ended September 30, 2025, the Company contributed $431 of investments at fair value to Credit Opportunities Partners JV, LLC.
See notes to unaudited consolidated financial statements.
5
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Pillar Global Inc | (v)(y)(z) | Software & Services | SF | + | 11/2026 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Pillar Global Inc | (v)(y)(z) | Software & Services | SF | + | 11/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ad)(v) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ad)(v) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ad)(x) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ad)(x) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aareon AG | (v)(w) | Software & Services | E | + | ( | / | 09/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aareon AG | (w)(x) | Software & Services | E | + | ( | / | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Actium Holdings Ltd (fka Alpha Financial Markets Consulting) | (v)(w) | Commercial & Professional Services | SA | + | ( | / | 08/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advanced Dermatology & Cosmetic Surgery | (v) | Health Care Equipment & Services | SF | + | 10/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advanced Dermatology & Cosmetic Surgery | (k)(l)(v) | Health Care Equipment & Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (aa)(v)(w) | Software & Services | E | + | 05/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (v)(w) | Software & Services | SA | + | 06/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (v)(w) | Software & Services | SR | + | 06/2031 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(v) | Health Care Equipment & Services | SF | + | 06/2031 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(v) | Health Care Equipment & Services | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (k)(v) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(v) | Insurance | SF | + | ( | / | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(x) | Insurance | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(x) | Insurance | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A-Lign Assurance LLC | (x) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A-Lign Assurance LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners Corp | (k)(l)(v) | Health Care Equipment & Services | SF | + | 09/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners Corp | (x) | Health Care Equipment & Services | SF | + | 11/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (x) | Commercial & Professional Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arcfield Acquisition Corp | (x) | Capital Goods | SF | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atwell LLC | (p)(v) | Capital Goods | SF | + | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atwell LLC | (x) | Capital Goods | SF | + | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atwell LLC | (x) | Capital Goods | SF | + | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(v)(w) | Capital Goods | SF | + | PIK | 09/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(v)(w)(y)(z) | Capital Goods | SF | + | PIK | 09/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(v)(w) | Capital Goods | SF | + | PIK | 09/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
6
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVE Holdings I Corp (fka Amerivet Partners Management Inc) | (v) | Health Care Equipment & Services | SF | + | 02/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVE Holdings I Corp (fka Amerivet Partners Management Inc) | (x) | Health Care Equipment & Services | SF | + | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (l)(v) | Software & Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (l)(v) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (x) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (x) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (k)(l)(p)(v) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (v) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (x) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cadence Education LLC | (k)(l)(v) | Consumer Services | SF | + | 05/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cadence Education LLC | (x) | Consumer Services | SF | + | 05/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (k)(l)(v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (k)(l)(v) | Commercial & Professional Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (x) | Commercial & Professional Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (x) | Commercial & Professional Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Circana Group (f.k.a. NPD Group) | (k)(l)(v) | Consumer Services | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Circana Group (f.k.a. NPD Group) | (x) | Consumer Services | SF | + | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (v)(w) | Software & Services | SA | + | ( | / | 08/2030 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (k)(l)(p)(v) | Capital Goods | SF | + | ( | / | 02/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (v) | Capital Goods | SF | + | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (x) | Capital Goods | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (x) | Capital Goods | SF | + | ( | / | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (k)(l) | Commercial & Professional Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (v) | Commercial & Professional Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (x) | Commercial & Professional Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (x) | Commercial & Professional Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clearwater Analytics LLC | (v) | Software & Services | SF | + | ( | / | 06/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clearwater Analytics LLC | (x) | Software & Services | SF | + | ( | / | 06/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
7
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clearwater Analytics LLC | (x) | Software & Services | SF | + | 06/2033 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Club Car Wash Operating LLC | (p)(v) | Consumer Services | SF | + | 12/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Club Car Wash Operating LLC | (v) | Consumer Services | SF | + | 12/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Club Car Wash Operating LLC | (x) | Consumer Services | SF | + | 12/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Club Car Wash Operating LLC | (x) | Consumer Services | SF | + | 12/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (p) | Consumer Services | SF | + | ( | / | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (x) | Consumer Services | SF | + | ( | / | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (x) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (v)(w) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Command Alkon Inc | (p) | Software & Services | SF | + | 09/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Command Alkon Inc | (x) | Software & Services | SF | + | 09/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Command Alkon Inc | (x) | Software & Services | SF | + | 09/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (k)(v) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (x) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Conservice LLC | (v) | Software & Services | SF | + | 02/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Conservice LLC | (x) | Software & Services | SF | + | 02/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consilium Safety Group AB | (w)(x) | Capital Goods | E | + | 04/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corsearch Intermediate Inc | (v) | Software & Services | SF | + | 04/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (p)(v) | Transportation | SF | + | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (v) | Transportation | SA | + | 12/2028 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (v) | Transportation | SF | + | 03/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (x) | Transportation | SF | + | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly | (v)(w) | Software & Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly | (w)(x) | Software & Services | SF | + | ( | / | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly | (w)(x) | Software & Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dedalus Finance GmbH | (aa)(v)(w) | Software & Services | E | + | 05/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | (ac)(v) | Health Care Equipment & Services | SF | + | 06/2031 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | (ac)(v) | Health Care Equipment & Services | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (k)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (x) | Health Care Equipment & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (x) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (v) | Insurance | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (k)(l)(v) | Insurance | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (v) | Insurance | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (v) | Insurance | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (x) | Insurance | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
8
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DuBois Chemicals Inc | (k)(l)(v) | Materials | SF | + | 06/2031 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DuBois Chemicals Inc | (x) | Materials | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eagle Railcar Services Roscoe Inc | (x) | Transportation | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eagle Railcar Services Roscoe Inc | (x) | Transportation | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eide Bailly LLP | (p) | Financial Services | SF | + | 07/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eide Bailly LLP | (x) | Financial Services | SF | + | 07/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eide Bailly LLP | (x) | Financial Services | SF | + | 07/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Envirotainer Ltd | (w)(x) | Transportation | E | + | ( | / | 07/2029 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excelitas Technologies Corp | (l)(v) | Technology Hardware & Equipment | SF | + | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excelitas Technologies Corp | (x) | Technology Hardware & Equipment | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Express Wash Concepts LLC | (p)(v) | Consumer Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Express Wash Concepts LLC | (v) | Consumer Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Express Wash Concepts LLC | (x) | Consumer Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Express Wash Concepts LLC | (x) | Consumer Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (k)(l)(p)(v) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (v) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Follett Software Co | (k)(v) | Software & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Follett Software Co | (x) | Software & Services | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fortnox AB | (w)(x) | Software & Services | SR | + | ( | / | 06/2032 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (v) | Insurance | SF | + | 10/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (k)(l)(v) | Insurance | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (x) | Insurance | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (x) | Insurance | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (k)(l)(v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (v) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (k)(v) | Software & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (x) | Software & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (x) | Software & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (v) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (k)(l)(p)(v) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (x) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GE Vernova Electrification Software LLC | (v) | Software & Services | SF | + | 03/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GE Vernova Electrification Software LLC | (x) | Software & Services | SF | + | 03/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Datatech LP | (k)(l)(v) | Software & Services | SF | + | 06/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
9
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (v) | Software & Services | SF | + | 03/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (v) | Software & Services | SF | + | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (x) | Software & Services | SF | + | 03/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC | (ad)(v)(y)(z) | Health Care Equipment & Services | PIK | 02/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (x) | Software & Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (v)(y)(z) | Transportation | SF | + | PIK | 07/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (v)(y)(z) | Transportation | SF | + | PIK | 07/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (v)(y)(z) | Transportation | SF | + | PIK | 07/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (x)(y)(z) | Transportation | SF | + | PIK | 07/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hibu Inc | (k)(l)(p)(v) | Commercial & Professional Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hibu Inc | (v) | Commercial & Professional Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency Inc | (v) | Insurance | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency Inc | (x) | Insurance | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (k)(l)(v) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (x) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (x) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(v) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(v) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(x) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (v) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (k)(v) | Financial Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (v) | Financial Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (x) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (x) | Financial Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (k)(l)(v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (v) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (p)(v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (x) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industria Chimica Emiliana Srl | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 09/2028 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inhabit IQ | (x) | Software & Services | SF | + | ( | / | 01/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inhabit IQ | (x) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| iNova Pharmaceuticals (Australia) Pty Limited | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | B | + | ( | / | 11/2031 | A$ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insight Global LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 09/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insight Global LLC | (x) | Commercial & Professional Services | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (v) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (v) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
10
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (v) | Software & Services | SF | + | 05/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (x) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (x) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrated Power Services LLC | (p)(v) | Commercial & Professional Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrated Power Services LLC | (x) | Commercial & Professional Services | SF | + | 11/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrated Power Services LLC | (x) | Commercial & Professional Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrity Marketing Group LLC | (k)(l)(v) | Insurance | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrity Marketing Group LLC | (x) | Insurance | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (k)(l)(p)(v) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (x) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jeppesen Holdings LLC | (w)(x) | Software & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | (ad)(v) | Commercial & Professional Services | SF | + | PIK | 11/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | (ad)(v)(y)(z) | Commercial & Professional Services | SF | + | PIK | 11/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | (ad)(v) | Commercial & Professional Services | SF | + | PIK | 11/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (k)(l)(v) | Insurance | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (x) | Insurance | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (x) | Insurance | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Laboratoires Vivacy SAS | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 03/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Laboratoires Vivacy SAS | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (k)(l)(v) | Transportation | SF | + | 05/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (x) | Transportation | SF | + | 05/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (x) | Transportation | SF | + | 05/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Learning Experience Corp/The | (v) | Consumer Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Learning Experience Corp/The | (x) | Consumer Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (v) | Consumer Services | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (p)(v) | Consumer Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (v) | Consumer Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (x) | Consumer Services | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC | (v)(w) | Financial Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC | (w)(x) | Financial Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | (ad)(v) | Media & Entertainment | SF | + | PIK | 05/2031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | (ad)(v)(y)(z) | Media & Entertainment | SF | + | PIK | 05/2031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | (ad)(x) | Media & Entertainment | SF | + | PIK | 05/2031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lipari Foods LLC | (p) | Consumer Staples Distribution & Retail | SF | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lipari Foods LLC | (x) | Consumer Staples Distribution & Retail | SF | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (v) | Commercial & Professional Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (x) | Commercial & Professional Services | SF | + | 11/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (x) | Commercial & Professional Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
11
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (v) | Financial Services | SF | + | ( | / | 08/2031 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (x) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (x) | Financial Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (x) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (k)(l)(p)(v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (x) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc | (ac)(v) | Software & Services | SF | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (k)(l)(p)(v) | Software & Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (v) | Software & Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (x) | Software & Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (x) | Software & Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mercer Advisors | (k)(l)(v) | Financial Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mercer Advisors | (x) | Financial Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Model N Inc | (l)(v) | Software & Services | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Model N Inc | (x) | Software & Services | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (k)(v) | Software & Services | SF | + | ( | / | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (x) | Software & Services | SF | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (x) | Software & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NBG Home | (v)(y) | Consumer Durables & Apparel | 12/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NBG Home | (v)(y)(z) | Consumer Durables & Apparel | SF | + | PIK | 12/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc | (ad)(v) | Software & Services | SF | + | ( | / | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEFCO Corp | (k)(l)(v) | Capital Goods | SF | + | 01/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEFCO Corp | (v) | Capital Goods | SF | + | 01/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEFCO Corp | (x) | Capital Goods | SF | + | 01/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NEFCO Corp | (x) | Capital Goods | SF | + | 01/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (p)(v) | Software & Services | SF | + | ( | / | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SF | + | ( | / | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (v) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (k)(l)(p)(v) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (x) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (k)(l)(v) | Health Care Equipment & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (x) | Health Care Equipment & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (x) | Health Care Equipment & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology LLC | (v)(y)(z) | Software & Services | SF | + | PIK | 06/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology LLC | (v)(y)(z) | Software & Services | SF | + | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology LLC | (x)(y)(z) | Software & Services | SF | + | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nordic Climate Group Holding AB | (v)(w) | Commercial & Professional Services | SR | + | ( | / | 06/2031 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
12
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nordic Climate Group Holding AB | (v)(w) | Commercial & Professional Services | E | + | ( | / | 06/2031 | € | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (k)(l)(v) | Software & Services | SF | + | ( | / | 12/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orion Services Group LLC | (v) | Capital Goods | SF | + | ( | / | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orion Services Group LLC | (v) | Capital Goods | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orion Services Group LLC | (x) | Capital Goods | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oxford Global Resources LLC | (k)(l)(p)(v) | Commercial & Professional Services | SF | + | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oxford Global Resources LLC | (x) | Commercial & Professional Services | SF | + | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (x) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pavement Preservation Group Inc | (p) | Capital Goods | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pavement Preservation Group Inc | (v) | Capital Goods | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pavement Preservation Group Inc | (x) | Capital Goods | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (v)(w) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (k)(l)(v)(w) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (v)(w) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (w)(x) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (w)(x) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (p)(v) | Capital Goods | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (x) | Capital Goods | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (x) | Capital Goods | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (l)(v) | Health Care Equipment & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (v) | Health Care Equipment & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (x) | Health Care Equipment & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (x) | Health Care Equipment & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | (ad)(v) | Media & Entertainment | SF | + | PIK | 10/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | (ad)(v) | Media & Entertainment | SF | + | PIK | 10/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROS Holdings Inc | (v) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROS Holdings Inc | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (v) | Transportation | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (k)(l)(v) | Transportation | SF | + | 04/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (x) | Transportation | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSKW LLC (dba ConnectiveRx) | (k)(l)(p)(v) | Health Care Equipment & Services | SF | + | 03/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (v) | Capital Goods | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (k)(l)(p)(v) | Capital Goods | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (x) | Capital Goods | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (v) | Commercial & Professional Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (x) | Commercial & Professional Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
13
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (x) | Commercial & Professional Services | SF | + | 05/2032 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reliant Rehab Hospital Cincinnati LLC | (v) | Health Care Equipment & Services | SF | + | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reliant Rehab Hospital Cincinnati LLC | (v)(y)(z) | Health Care Equipment & Services | SF | + | ( | / | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (k)(v) | Commercial & Professional Services | SF | + | ( | / | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (v) | Commercial & Professional Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (x) | Commercial & Professional Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (x) | Commercial & Professional Services | SF | + | ( | / | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (x) | Commercial & Professional Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (k)(l)(v) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (v) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (x) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rialto Capital Management LLC | (k)(l)(v) | Financial Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rialto Capital Management LLC | (x) | Financial Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rockefeller Capital Management LP | (k)(l)(v) | Financial Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rockefeller Capital Management LP | (x) | Financial Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safe-Guard Products International LLC | (k)(l)(v) | Financial Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safe-Guard Products International LLC | (x) | Financial Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (l)(v) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (v) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (x) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schellman Inc | (p) | Software & Services | SF | + | ( | / | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schellman Inc | (x) | Software & Services | SF | + | ( | / | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schellman Inc | (x) | Software & Services | SF | + | 04/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (v) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (x) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (x) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (x) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (x) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shaw Development LLC | (l)(v) | Capital Goods | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (k)(v) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (v) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spins LLC | (k)(l)(v) | Software & Services | SF | + | 01/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spins LLC | (x) | Software & Services | SF | + | 01/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
14
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (k)(l)(v) | Consumer Services | SF | + | 07/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (k)(l)(v) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (v) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (x) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summit Interconnect Inc | (v) | Capital Goods | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sunbelt Solomon Services LLC | (v) | Capital Goods | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sunbelt Solomon Services LLC | (p) | Capital Goods | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sunbelt Solomon Services LLC | (x) | Capital Goods | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sunbelt Solomon Services LLC | (x) | Capital Goods | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | PIK | 06/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (x) | Commercial & Professional Services | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangoe LLC | (v) | Software & Services | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangoe LLC | (v)(y)(z) | Software & Services | PIK | 06/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | SF | + | 12/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | SF | + | 12/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | E | + | 12/2027 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (x) | Capital Goods | SF | + | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trackunit ApS | (w)(x) | Software & Services | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trackunit ApS | (w)(x) | Software & Services | SF | + | ( | / | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (v) | Capital Goods | SF | + | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (l) | Capital Goods | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (x) | Capital Goods | SF | + | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (k)(l)(p)(v) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (v) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (x) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (x) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (v)(w) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (w)(x) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (w)(x) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (v) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (x) | Software & Services | SF | + | ( | / | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (x) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Version1 Software Ltd | (v)(w) | Software & Services | SA | + | ( | / | 07/2029 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Version1 Software Ltd | (w)(x) | Software & Services | SA | + | ( | / | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (v) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
15
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (v) | Health Care Equipment & Services | SF | + | 08/2029 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (x) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vigor Marine Group LLC | (v) | Transportation | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vigor Marine Group LLC | (x) | Transportation | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vigor Marine Group LLC | (x) | Transportation | SF | + | 08/2033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vitu | (k)(v) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vitu | (x) | Software & Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Waste Services Group Pty Ltd | (v)(w) | Commercial & Professional Services | B | + | ( | / | 03/2032 | A$ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Waste Services Group Pty Ltd | (w)(x) | Commercial & Professional Services | B | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (v) | Financial Services | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (k)(v) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (x) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (x) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (k) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (x) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (x) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (k)(l)(v) | Capital Goods | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (v) | Capital Goods | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (v) | Capital Goods | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (x) | Capital Goods | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (x) | Capital Goods | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | (ad)(v)(w) | Capital Goods | ( | / | 12/2028 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | (ad)(v)(w) | Capital Goods | ( | / | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (v) | Capital Goods | SF | + | 04/2031 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (p)(v) | Capital Goods | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (x) | Capital Goods | SF | + | 04/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | ( | / | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (x)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (k)(v) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (v) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (x) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (x) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zellis Holdings Ltd | (v)(w) | Software & Services | SA | + | ( | / | 08/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zellis Holdings Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zendesk Inc | (k)(l)(v) | Software & Services | SF | + | 11/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zendesk Inc | (x) | Software & Services | SF | + | 11/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (v) | Health Care Equipment & Services | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (l)(v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (x) | Health Care Equipment & Services | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
16
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Senior Secured Loans—First Lien | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Loan Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Senior Secured Loans—First Lien | 6,656.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—Second Lien— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC | (v)(y)(z) | Capital Goods | SF | + | PIK | 12/2028 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peraton Corp | (v) | Capital Goods | SF | + | 02/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peraton Corp | (v) | Capital Goods | SF | + | 02/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | (ad)(v) | Consumer Durables & Apparel | SF | + | 07/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | (ad)(v) | Consumer Durables & Apparel | SF | + | 07/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Solera LLC | (v) | Software & Services | SF | + | 06/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v)(y) | Commercial & Professional Services | 03/2034 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v)(y) | Commercial & Professional Services | 03/2036 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Valeo Foods Group Ltd | (v)(w) | Food, Beverage & Tobacco | E | + | 10/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Senior Secured Debt— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cloud Software Group Inc | (aa)(v) | Software & Services | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp | (v)(y)(z) | Software & Services | SF | + | ( | / | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (aa)(v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | 02/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (aa)(v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc | (ac)(v) | Health Care Equipment & Services | PIK | 05/2032 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Senior Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debt— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ad)(v) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp | (ad)(v) | Capital Goods | SF | + | PIK | 03/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(v) | Health Care Equipment & Services | PIK | 06/2032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(v)(y)(z) | Insurance | SF | + | PIK | 02/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(v)(w)(y)(z) | Capital Goods | PIK | 09/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly | (v)(w) | Software & Services | SF | + | PIK | 04/2033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly | (w)(x) | Software & Services | SF | + | PIK | 04/2033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leia Acquisition Ltd. (fka Swift Worldwide Resources Holdco Ltd) | (v) | Commercial & Professional Services | PIK | 07/2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | PIK | 10/2033 | € | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
17
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | PIK | 10/2033 | € | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC | (j)(u)(v)(y) | Telecommunication Services | 04/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC | (j)(u)(v)(y) | Telecommunication Services | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Debt Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Based Finance— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, ABF Equity | (ad)(g)(v)(y) | Equity Real Estate Investment Trusts (REITs) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, Structured Mezzanine | (ad)(v)(y)(z) | Equity Real Estate Investment Trusts (REITs) | ( | / | 12/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abacus JV, ABF Equity | (ad)(g)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accelerator Investments Aggregator LP, ABF Equity | (ac)(g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advancion Corp/IL, Revolver | (v) | Materials | SF | + | 09/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advancion Corp/IL, Revolver | (x) | Materials | SF | + | 09/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator (GreenSky Holdings I) | (ac)(g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator (Rockloans Marketplace LLC) | (ad)(g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator 40 Act (AOP SFR 1 LLC (FKA Avenue One PropCo)) | (ad)(g)(v)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator 40 Act (My Community Homes PropCo 2) | (ad)(g)(v)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Altavair AirFinance, ABF Equity | (ad)(g)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AOP SFR 1 LLC (FKA Avenue One PropCo), Term Loan | (ad)(v) | Equity Real Estate Investment Trusts (REITs) | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime, Common Stock | (ad)(g)(v)(w) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Auxilior Capital Partners Inc, Preferred Equity | (g)(v) | Financial Services | ( | / | 04/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Common Stock | (ad)(g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Subordinated Bond | (ad)(v)(w) | Financial Services | SR | + | 01/2034 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(v) | Transportation | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(v) | Transportation | PIK | 10/2033 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(x) | Transportation | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(x) | Transportation | PIK | 10/2033 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Builders Capital Loan Acquisition Trust 2022-RTL1, Structured Mezzanine | (v)(w)(y)(z) | Real Estate Management & Development | 07/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Byrider Finance LLC, ABF Equity | (g)(u)(v)(y) | Automobiles & Components | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
18
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Danube - Alps Aggregator (PayPal Europe Sarl et Cie SCA) | (g)(v)(w) | Financial Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fortna AR LLC (FKA Fortna Group Inc), Revolver | (v)(w) | Capital Goods | SF | + | 06/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fourways Aggregator LP (Norway_France) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | (ad)(v) | Transportation | PIK | 01/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | (ad)(v) | Transportation | PIK | 04/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | (ad)(v) | Transportation | PIK | 06/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Jet Capital LLC, Preferred Stock | (g)(j)(u)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, Term Loan | (ac)(v) | Financial Services | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hercules Aggregator LP (Flexsys Holdings Inc) | (g)(v) | Materials | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance 2.0, Common Stock | (ad)(g)(v)(w) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, ABF Equity | (ad)(g)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Common Stock | (ad)(g)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Preferred Stock | (ad)(g)(v)(w) | Insurance | ( | / | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude II Offshore Aggregator LP, Partnership Interest | (ad)(g)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude III Offshore Aggregator (Altitude III) | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Chord IP Aggregator LP, Partnership Interest | (ad)(g)(v)(w)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Lombardy Aggregator LP (SKP German Bank) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Maverick Holdco Blocker (Bond Aviation Holdings LLC) | (ac)(g)(v)(y) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Morrow ABF Aggregator LLC (Harley-Davidson Financial Services Inc) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Morrow OpCo Aggregator LLC (Harley-Davidson Financial Services Inc) | (g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Morrow Residual Purchase 1 LLC (Harley-Davidson Financial Services Inc) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest | (ad)(g)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KSC I Aircraft LP, ABF Equity | (ad)(g)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Likewize Corp, Revolver | (v)(w) | Commercial & Professional Services | SF | + | 05/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Likewize Corp, Revolver | (w)(x) | Commercial & Professional Services | SF | + | 05/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v) | Equity Real Estate Investment Trusts (REITs) | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v) | Equity Real Estate Investment Trusts (REITs) | PIK | 04/2035 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
19
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v) | Equity Real Estate Investment Trusts (REITs) | PIK | 06/2035 | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Newday Group Jersey Ltd, Bond | (v)(w) | Financial Services | PIK | 08/2036 | £ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NewStar Clarendon 2014-1A Class D | (v)(w) | Financial Services | 01/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nottingdale Receivables Limited (FKA TalkTalk Telecom Group Ltd), Revolver | (v)(w) | Telecommunication Services | SA | + | 09/2027 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nottingdale Receivables Limited (FKA TalkTalk Telecom Group Ltd), Revolver | (w)(x) | Telecommunication Services | SA | + | 09/2027 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (v)(w) | Transportation | 10/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (v)(w) | Transportation | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (w)(x) | Transportation | 10/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (w)(x) | Transportation | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, ABF Equity | (ad)(g)(v)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, Structured Mezzanine | (ad)(v)(y)(z) | Equity Real Estate Investment Trusts (REITs) | ( | / | 03/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ravine - PIK Equity (Vehicle Secured Funding Trust) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roemanu LLC, ABF Equity | (ad)(g)(v)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCRIPPS SPV LLC (FKA EW Scripps Co/The), Revolver | (v)(w) | Media & Entertainment | SF | + | 03/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCRIPPS SPV LLC (FKA EW Scripps Co/The), Revolver | (w)(x) | Media & Entertainment | SF | + | 03/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sea Financing Aggregator II LP (Australis Maritime II) | (ad)(g)(v)(w) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Slate Venture Holdings LP, Term Loan | (v) | Consumer Durables & Apparel | ( | / | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sotheby's, Revolver | (v) | Consumer Services | SF | + | 02/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sotheby's, Revolver | (x) | Consumer Services | SF | + | 02/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV (Residential Opportunities I LLC) | (g)(v)(y) | Real Estate Management & Development | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV (SunPower Financial) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV ALPS 2.0 Aggregator LP EUR (PayPal Danube 2) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV ALPS 2.0 Aggregator LP GBP (PayPal Danube 2) | (g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV KKR Galaxy BDC Leveraged (Galaxy Container) | (ad)(g)(v)(y) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Magenta Holdings (GreenSky (Platform)) | (ac)(g)(v)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Olympus Holdco Limited (TDC LLP) | (ad)(g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Slate US Blocker LLC (Slate Venture Holdings LP) | (g)(v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Solaris BDC Leveraged (Newday Group Jersey Ltd) | (g)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Star Mountain Diversified Credit Income Fund III, LP, ABF Equity | (g)(o)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
20
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tarifa Aggregator LP (Drive Revel) | (g)(v)(w) | Financial Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, Preferred Equity | (ad)(g)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TPSI Receivables LLC (Tropicana Products Inc), Revolver | (v)(w) | Food, Beverage & Tobacco | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TPSI Receivables LLC (Tropicana Products Inc), Revolver | (w)(x) | Food, Beverage & Tobacco | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Secured Funding Trust, Term Loan | (v)(w) | Financial Services | 01/2046 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wood Group Receivables LLC (FKA John Wood Group PLC), Revolver | (v)(w) | Capital Goods | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wood Group Receivables LLC (FKA John Wood Group PLC), Revolver | (w)(x) | Capital Goods | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zentiva, Common Stock | (g)(v)(w)(y) | Pharmaceuticals, Biotechnology & Life Sciences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zentiva, Preferred Equity | (g)(v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | PIK | 04/2055 | £ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Asset Based Finance Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Partners JV, LLC— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | (ad)(v)(w) | Credit Opportunities Partners JV, LLC | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Credit Opportunities Partners JV, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Common Stock | (ad)(g)(v)(y) | Commercial & Professional Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Preferred Stock | (ad)(g)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Common Stock | (ad)(g)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Preferred Stock | (ad)(g)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Class A Common Stock | (ac)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Class B Common Stock | (ac)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Common Stock | (ad)(g)(v)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Preferred Equity | (ad)(g)(v)(y)(z) | Insurance | SF | + | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners, Private Equity | (g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| athenahealth Inc, Preferred Stock | (ac)(g)(v) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-1 Common Stock | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-2 Common Stock | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Common Stock | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVE Holdings I Corp (fka Amerivet Partners Management Inc), Preferred Stock | (g)(v)(y)(z) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
21
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc, Common Stock | (ac)(g)(v) | Consumer Discretionary Distribution & Retail | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borden (New Dairy Opco), Common Stock | (ad)(g)(h)(n)(y) | Food, Beverage & Tobacco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrant | (g)(v)(y) | Food, Beverage & Tobacco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | (g)(v)(y) | Food, Beverage & Tobacco | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | (g)(v)(y) | Food, Beverage & Tobacco | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CDS US Intermediate Holdings Inc, Common Stock | (g)(v)(w)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cengage Learning, Inc, Common Stock | (g)(v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC, Preferred Equity | (g)(v)(y) | Capital Goods | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Common Stock | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Equity | (g)(v)(y)(z) | Software & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Stock | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Warrant | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc, Common Stock | (ac)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Common Stock | (g)(n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | (g)(n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | (g)(n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Trade Claim | (g)(v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Class A Common Stock | (ad)(g)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Equity | (ad)(g)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Stock B | (ad)(g)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Common Stock | (ad)(g)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Equity | (ad)(g)(v) | Capital Goods | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | (ad)(g)(j)(u)(v) | Materials | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Common Stock | (ad)(g)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Preferred Stock | (ad)(g)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kestra Financial Inc, Preferred Equity | (g)(v) | Financial Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class A Common Stock | (g)(n)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class Z Preferred Stock | (g)(n)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Common Equity | (ad)(g)(v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Preferred Stock | (ad)(g)(v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lipari Foods LLC, Common Stock | (g)(v)(y) | Consumer Staples Distribution & Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC, Common Stock | (g)(h)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc, Class A Equity | (ac)(g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc, Preferred Equity | (ac)(g)(v) | Software & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix, Class B Common Units | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix, Common Stock | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Misys Ltd, Preferred Stock | (g)(v)(w) | Software & Services | SF | + | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class A-1 Common Stock | (ad)(g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
22
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class B-1 Common Stock | (ad)(g)(v)(y) | Software & Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class C Common Stock | (ad)(g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class I-1 Common Stock | (ad)(g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology LLC, Common Stock | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology LLC, Preferred Stock | (g)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG, Common Stock | (g)(v)(w)(y) | Pharmaceuticals, Biotechnology & Life Sciences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Common Stock | (ac)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A | (ac)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B | (ac)(g)(v)(y)(z) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Polyconcept North America Inc, Class A - 1 Units | (g)(v)(y) | Household & Personal Products | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Common Stock | (ad)(g)(v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units | (ac)(g)(v)(w) | Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC, Common Stock | (ad)(g)(v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | (ad)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | (ad)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trade Claim | (ad)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trust Initial Funding Units | (ad)(g)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC, Common Stock | (g)(j)(u)(v)(y) | Telecommunication Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stuart Weitzman Inc, Common Stock | (g)(v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | (g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | (g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH, Common Stock | (ad)(g)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allspring Government Money Market Fund Select Class | (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allspring Government Money Market Fund Institutional Class | (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goldman Sachs Financial Square Government Institutional Fund | (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Money Market Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL CASH AND CASH EQUIVALENTS— | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND PREFERRED STOCK IN EXCESS OF OTHER ASSETS—( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET ASSETS—100% | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
23
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Foreign currency forward contracts
| Foreign Currency | Settlement Date | Counterparty | Amount and Transaction | US$ Value at Settlement Date | US$ Value at September 30, 2026 | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||||||||||||||||
| AUD | 3/30/2028 | JP Morgan Chase Bank | A$ | Sold | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| EUR | 2/15/2028 | JP Morgan Chase Bank | € | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| EUR | 12/28/2029 | JP Morgan Chase Bank | € | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| EUR | 4/8/2031 | JP Morgan Chase Bank | € | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 12/31/2026 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 12/31/2026 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 6/21/2027 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 2/15/2028 | JP Morgan Chase Bank | £ | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/30/2028 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/30/2028 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/30/2028 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/29/2029 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/29/2029 | JP Morgan Chase Bank | £ | Sold | |||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/21/2027 | JP Morgan Chase Bank | SEK | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| SEK | 2/15/2028 | JP Morgan Chase Bank | SEK | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/30/2028 | JP Morgan Chase Bank | SEK | Sold | |||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/30/2028 | JP Morgan Chase Bank | SEK | Sold | |||||||||||||||||||||||||||||||||||||||||||
| SEK | 12/28/2029 | JP Morgan Chase Bank | SEK | Sold | ( | ||||||||||||||||||||||||||||||||||||||||||
| SEK | 12/28/2029 | JP Morgan Chase Bank | SEK | Sold | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps
| Description | Hedged Item | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | Upfront Payments/Receipts | Change in Unrealized Appreciation/(Depreciation) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.875% Notes due 2029 | SOFR + | ING Capital Markets LLC | 8/15/2029 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.875% Notes due 2029 | SOFR + | ING Capital Markets LLC | 8/15/2029 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2030 | SOFR + | ING Capital Markets LLC | 1/15/2030 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2030 | SOFR + | ING Capital Markets LLC | 1/15/2030 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2031 | SOFR + | Royal Bank of Canada | 1/15/2031 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 7.500% Notes due 2031 | SOFR + | ING Capital Markets LLC | 8/1/2031 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
_______________
(a)Security may be an obligation of one or more entities affiliated with the named company.
(b)Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of September 30, 2026, the Euro Interbank Offered Rate, or EURIBOR or “E”, was 2.62 %, the Australian Bank Bill Swap Bid Rate, or BBSY or “B”, was 4.82 %, the Stockholm Interbank Offered Rate, or STIBOR or “SR”, was 2.01 %, the Sterling Overnight Index Average, or SONIA or “SA”, was
See notes to unaudited consolidated financial statements.
24
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
(c)Denominated in U.S. dollars unless otherwise noted.
(d)See Note 8 for additional information regarding the fair value of the Company’s financial instruments.
(e)Listed investments may be treated as debt for GAAP or tax purposes.
(f)Rate represents the 7-day yield as of September 30, 2026.
(g)Security may be deemed to be a “restricted security.” As of September 30, 2026, the aggregate fair value of these securities is $2,062.6 , or 41.3 % of the Company’s net assets. The initial acquisition dates have been included for such securities (see Note 8).
(h)Security held within CCT Holdings II LLC, a wholly-owned subsidiary of the Company.
(i)Not used.
(j)Security or portion thereof held within Cobbs Creek LLC and is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).
(k)Security or portion thereof held within KKR - FSK CLO 3 LLC (see Note 9).
(l)Security or portion thereof held within KKR - FSK CLO 2 LLC (see Note 9).
(m)Not used.
(n)Security held within FSIC II Investments, Inc., a wholly-owned subsidiary of the Company.
(o)Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company.
(p)Security or portion thereof held within Callowhill Street Funding LLC and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with CIBC Bank (see Note 9).
(q)Not used.
(r)Not used.
(s)Not used.
(t)Not used.
(u)Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).
(v)Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).
(w)The investment, or a portion of the investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of September 30, 2026, 75.4 % of the Company’s total assets represented qualifying assets.
(x)Security is an unfunded commitment. Reflects the stated spread at the time of commitment, but may not be the actual rate received upon funding .
(y)Security is non-income producing.
(z)Asset is on non-accrual status.
(aa)Security is classified as Level 1 or Level 2 in the Company’s fair value hierarchy (see Note 8).
(ab)Position or portion thereof unsettled as of September 30, 2026.
(ac)Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of September 30, 2026, the Company held investments in portfolio companies of which it may be deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company may be deemed to be an affiliated person for the nine months ended September 30, 2026:
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC(4) | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC(4) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
25
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accelerator Investments Aggregator LP, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator (GreenSky Holdings I) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Altavair AirFinance, ABF Equity(4) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, Term Loan | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Maverick Holdco Blocker (Bond Aviation Holdings LLC) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Magenta Holdings (GreenSky (Platform)) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC, Common Stock(4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Preferred Stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Class A Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Class B Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| athenahealth Inc, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc, Common Stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc, Class A Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc, Preferred Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | 30.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
______________
(1)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
See notes to unaudited consolidated financial statements.
26
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
(2)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(3)Interest, PIK, Fee and Dividend and Other income presented for the nine months ended September 30, 2026.
(4)The Company held this investment as of September 30, 2026 but it was not deemed to “control” the portfolio company as of September 30, 2026. Transfers in or out have been presented at amortized cost.
(ad)Under the Investment Company Act of 1940, as amended, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of September 30, 2026, the Company held investments in portfolio companies of which it may be deemed to be an “affiliated person” and may be deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company may be deemed to be an affiliated person and may be deemed to control for the nine months ended September 30, 2026:
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC(4) | $ | $ | $ | ( | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC(4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HM Dunn Co Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
27
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, ABF Equity | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, Structured Mezzanine | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abacus JV, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator (Rockloans Marketplace LLC) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator 40 Act (AOP SFR 1 LLC (FKA Avenue One PropCo)) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregator 40 Act (My Community Homes PropCo 2) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Altavair AirFinance, ABF Equity(4) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AOP SFR 1 LLC (FKA Avenue One PropCo), Term Loan | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Subordinated Bond | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, Structured Mezzanine | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance 2.0, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude II Offshore Aggregator LP, Partnership Interest | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude III Offshore Aggregator (Altitude III) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Chord IP Aggregator LP, Partnership Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KSC I Aircraft LP, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, Structured Mezzanine | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roemanu LLC, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
28
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | $ | $ | $ | ( | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Term Loan | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sea Financing Aggregator II LP (Australis Maritime II) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV KKR Galaxy BDC Leveraged (Galaxy Container) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SPV Olympus Holdco Limited (TDC LLP) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC, Preferred Stock(4) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC, Common Stock(4) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-1 Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-2 Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borden (New Dairy Opco), Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Stock B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Class A Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Common Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class A-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class B-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class C Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class I-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trade Claim | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trust Initial Funding Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
29
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of September 30, 2026
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2025 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at September 30, 2026 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH, Common Stock | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ( | $ | (341.7) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
______________
(1)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
(2)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(3)Interest, PIK, Fee and Dividend and Other income presented for the nine months ended September 30, 2026.
(4)The Company held this investment as of December 31, 2025 but it was not deemed to be in “control” of the portfolio company as of December 31, 2025. Transfers in or out have been presented at amortized cost.
See notes to unaudited consolidated financial statements.
30
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Pillar Global Inc | (v) | Software & Services | SF | + | 11/2026 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Pillar Global Inc | (i)(v) | Software & Services | SF | + | 11/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3Pillar Global Inc | (x) | Software & Services | SF | + | 11/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ac)(v)(y)(z) | Commercial & Professional Services | SF | + | ( | / | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ac)(v)(y)(z) | Commercial & Professional Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC | (ac)(x)(y)(z) | Commercial & Professional Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aareon AG | (v)(w) | Software & Services | E | + | ( | / | 10/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aareon AG | (w)(x) | Software & Services | E | + | ( | / | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advanced Dermatology & Cosmetic Surgery | (v) | Health Care Equipment & Services | SF | + | 05/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advanced Dermatology & Cosmetic Surgery | (k)(l)(t)(v) | Health Care Equipment & Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advanced Dermatology & Cosmetic Surgery | (x) | Health Care Equipment & Services | SF | + | 05/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (aa)(v)(w) | Software & Services | E | + | 05/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (v)(w) | Software & Services | SA | + | 06/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advania Sverige AB | (v)(w) | Software & Services | SR | + | 06/2031 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(v) | Health Care Equipment & Services | SF | + | ( | / | 08/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(l)(v) | Health Care Equipment & Services | SF | + | ( | / | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | (ac)(x) | Health Care Equipment & Services | SF | + | ( | / | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (k)(v) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AGS Health LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(v) | Insurance | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(v) | Insurance | SF | + | ( | / | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(x) | Insurance | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(x) | Insurance | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A-Lign Assurance LLC | (k)(v) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A-Lign Assurance LLC | (x) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A-Lign Assurance LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alpha Financial Markets Consulting PLC | (v)(w) | Commercial & Professional Services | SA | + | 08/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alpha Financial Markets Consulting PLC | (w)(x) | Commercial & Professional Services | SA | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners | (v) | Health Care Equipment & Services | SF | + | 09/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners | (i)(k)(l)(v) | Health Care Equipment & Services | SF | + | 09/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners | (x) | Health Care Equipment & Services | SF | + | 09/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amerivet Partners Management Inc | (l)(v) | Health Care Equipment & Services | SF | + | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amerivet Partners Management Inc | (x) | Health Care Equipment & Services | SF | + | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Group Limited | (aa)(v)(w) | Financial Services | SF | + | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (v) | Commercial & Professional Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (k)(v) | Commercial & Professional Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apex Service Partners LLC | (x) | Commercial & Professional Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
31
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arcfield Acquisition Corp | (x) | Capital Goods | SF | + | 10/2031 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arcwood Environmental (fka Heritage Environmental Services Inc) | (k)(l)(v) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arcwood Environmental (fka Heritage Environmental Services Inc) | (k)(l)(v) | Commercial & Professional Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arcwood Environmental (fka Heritage Environmental Services Inc) | (x) | Commercial & Professional Services | SF | + | 01/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Area Wide Protective Inc | (k)(v) | Commercial & Professional Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Area Wide Protective Inc | (x) | Commercial & Professional Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(v)(w) | Capital Goods | SF | + | PIK | 09/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(s)(v)(w) | Capital Goods | SF | + | PIK | 09/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (l) | Software & Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avetta LLC | (x) | Software & Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BCA Marketplace Ltd | (v)(w) | Commercial & Professional Services | SA | + | ( | / | 03/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BCA Marketplace Ltd | (v)(w) | Commercial & Professional Services | E | + | ( | / | 04/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BDO USA PA | (k)(l)(v) | Commercial & Professional Services | SF | + | 08/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BDO USA PA | (v) | Commercial & Professional Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc | (ac)(v) | Consumer Discretionary Distribution & Retail | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (v) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (x) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BGB Group LLC | (x) | Media & Entertainment | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (k)(l)(p)(t)(v) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (v) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bonterra LLC | (x) | Software & Services | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cadence Education LLC | (v) | Consumer Services | SF | + | 05/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cadence Education LLC | (x) | Consumer Services | SF | + | 05/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cadence Education LLC | (x) | Consumer Services | SF | + | 05/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (l)(v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cambrex Corp | (x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (v) | Commercial & Professional Services | SF | + | 07/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (v) | Commercial & Professional Services | E | + | ( | / | 07/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
32
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (x) | Commercial & Professional Services | SF | + | 07/2030 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrier Fire Protection | (x) | Commercial & Professional Services | SF | + | ( | / | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Circana Group (f.k.a. NPD Group) | (k)(l)(v) | Consumer Services | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Circana Group (f.k.a. NPD Group) | (x) | Consumer Services | SF | + | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (v)(w) | Software & Services | SA | + | ( | / | 08/2030 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Civica Group Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (k)(l)(p)(t)(v) | Capital Goods | SF | + | ( | / | 02/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (v) | Capital Goods | SF | + | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (x) | Capital Goods | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (x) | Capital Goods | SF | + | ( | / | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Clarience Technologies LLC | (x) | Capital Goods | SF | + | 02/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (x) | Commercial & Professional Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLEAResult Consulting Inc | (x) | Commercial & Professional Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (k)(v) | Consumer Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (x) | Consumer Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ClubCorp Club Operations Inc | (x) | Consumer Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (ab)(v)(w) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (ab)(w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (ab)(w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Com Laude Group Ltd | (w)(x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (v) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (k)(t)(v) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (x) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community Brands Inc | (x) | Software & Services | SF | + | 07/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consilium Safety Group AB | (w)(x) | Capital Goods | E | + | ( | / | 04/2031 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corsearch Intermediate Inc | (l)(v) | Software & Services | SF | + | 04/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (p)(t)(v) | Transportation | SF | + | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (v) | Transportation | SA | + | 12/2028 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (v) | Transportation | SF | + | 03/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CSafe Global | (x) | Transportation | SF | + | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly Refinancing | (w)(x) | Software & Services | SF | + | ( | / | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly Refinancing | (w)(x) | Software & Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dedalus Finance GmbH | (aa)(v)(w) | Software & Services | E | + | 05/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | (l)(v)(y)(z) | Health Care Equipment & Services | SF | + | 04/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental Care Alliance Inc | (l)(v)(y)(z) | Health Care Equipment & Services | SF | + | 04/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (v) | Health Care Equipment & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (k)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
33
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (x) | Health Care Equipment & Services | SF | + | 05/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dental365 LLC | (x) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (v) | Insurance | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (k)(l)(v) | Insurance | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (x) | Insurance | SF | + | 12/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DOXA Insurance Holdings LLC | (x) | Insurance | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DuBois Chemicals Inc | (k)(l)(t)(v) | Materials | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DuBois Chemicals Inc | (x) | Materials | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DuBois Chemicals Inc | (x) | Materials | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eagle Railcar Services Roscoe Inc | (l) | Transportation | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eagle Railcar Services Roscoe Inc | (x) | Transportation | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eagle Railcar Services Roscoe Inc | (x) | Transportation | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Envirotainer Ltd | (w)(x) | Transportation | E | + | ( | / | 07/2029 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excelitas Technologies Corp | (l) | Technology Hardware & Equipment | SF | + | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excelitas Technologies Corp | (x) | Technology Hardware & Equipment | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excelitas Technologies Corp | (x) | Technology Hardware & Equipment | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (k)(p)(v) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (v) | Software & Services | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Flexera Software LLC | (x) | Software & Services | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Follett Software Co | (k)(t)(v) | Software & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Follett Software Co | (x) | Software & Services | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fortnox AB | (w)(x) | Software & Services | SR | + | ( | / | 06/2032 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Consumer Brands LLC | (k)(l)(v) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 02/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Consumer Brands LLC | (x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 02/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (v) | Insurance | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (k)(l)(v) | Insurance | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (x) | Insurance | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foundation Risk Partners Corp | (x) | Insurance | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (l)(v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frontline Road Safety LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (k)(v) | Software & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (x) | Software & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fullsteam Holdings LLC | (x) | Software & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (v) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | (x) | Consumer Durables & Apparel | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
34
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (v) | Insurance | SF | + | 09/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (k)(l)(p)(t)(v) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (x) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galway Partners Holdings LLC | (x) | Insurance | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Datatech LP | (k)(l)(t)(v) | Software & Services | SF | + | 06/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (v) | Software & Services | SF | + | 03/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (i)(v) | Software & Services | SF | + | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gigamon Inc | (x) | Software & Services | SF | + | 03/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC | (ad)(v)(y)(z) | Health Care Equipment & Services | PIK | 02/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (x) | Software & Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Granicus Inc | (x) | Software & Services | SF | + | ( | / | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hargreaves Lansdown Ltd | (v)(w) | Financial Services | SA | + | ( | / | 03/2032 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (v) | Transportation | SF | + | 12/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (v) | Transportation | SF | + | 12/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (l)(v) | Transportation | SF | + | 12/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Heniff Transportation Systems LLC | (x) | Transportation | SF | + | 12/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hibu Inc | (l)(p)(t)(v) | Commercial & Professional Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hibu Inc | (k)(v) | Commercial & Professional Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hibu Inc | (v) | Commercial & Professional Services | SF | + | 05/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency Inc | (ab)(v) | Insurance | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency Inc | (ab)(x) | Insurance | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (k)(l)(v) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (x) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Highgate Hotels Inc | (x) | Consumer Services | SF | + | 11/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(v) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(v) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | (ad)(x) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (v) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (k)(v) | Financial Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homrich & Berg Inc | (x) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (k)(l)(t)(v) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (v) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (p) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (x) | Capital Goods | SF | + | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horizon CTS Buyer LLC | (x) | Capital Goods | SF | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industria Chimica Emiliana Srl | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 09/2028 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industry City TI Lessor LP | (s)(v) | Consumer Services | ( | / | 06/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inhabit IQ | (x) | Software & Services | SF | + | ( | / | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
35
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inhabit IQ | (x) | Software & Services | SF | + | 01/2032 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| iNova Pharmaceuticals (Australia) Pty Limited | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | B | + | ( | / | 11/2031 | A$ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insight Global LLC | (i)(k)(l)(v) | Commercial & Professional Services | SF | + | 09/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insight Global LLC | (x) | Commercial & Professional Services | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (v) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (v) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (k)(l)(v) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (x) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insightsoftware.Com Inc | (x) | Software & Services | SF | + | 05/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrity Marketing Group LLC | (k)(l)(v) | Insurance | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrity Marketing Group LLC | (x) | Insurance | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Integrity Marketing Group LLC | (x) | Insurance | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (k)(l)(p)(v) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (v) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (x) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| J S Held LLC | (x) | Insurance | SF | + | 06/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jeppesen Holdings LLC | (w)(x) | Software & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | (ad)(s)(v) | Commercial & Professional Services | SF | + | PIK | 11/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | (ad)(s)(v)(y)(z) | Commercial & Professional Services | SF | + | PIK | 11/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (k)(v) | Insurance | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (x) | Insurance | SF | + | ( | / | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keystone Agency Partners LLC | (x) | Insurance | SF | + | 08/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Laboratoires Vivacy SAS | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 03/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Laboratoires Vivacy SAS | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | E | + | ( | / | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (v) | Transportation | SF | + | 05/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (k)(l)(v) | Transportation | SF | + | 05/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (x) | Transportation | SF | + | 05/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lazer Logistics Inc | (x) | Transportation | SF | + | 05/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Learning Experience Corp/The | (t) | Consumer Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Learning Experience Corp/The | (x) | Consumer Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (v) | Consumer Services | SF | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (p)(t)(v) | Consumer Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (x) | Consumer Services | SF | + | ( | / | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legends Hospitality LLC | (x) | Consumer Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc | (i)(s)(v)(y)(z) | Media & Entertainment | SF | + | 04/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lipari Foods LLC | (i)(v) | Consumer Staples Distribution & Retail | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lloyd's Register Quality Assurance Ltd | (v)(w) | Commercial & Professional Services | SA | + | ( | / | 12/2028 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lloyd's Register Quality Assurance Ltd | (v)(w) | Commercial & Professional Services | SA | + | ( | / | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
36
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lloyd's Register Quality Assurance Ltd | (w)(x) | Commercial & Professional Services | SA | + | ( | / | 12/2028 | £ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 11/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC | (x) | Commercial & Professional Services | SF | + | 11/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (v) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (v) | Financial Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (x) | Financial Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MAI Capital Management LLC | (x) | Financial Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (k)(l)(p)(t)(v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (x) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MB2 Dental Solutions LLC | (x) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medallia Inc | (v) | Software & Services | SF | + | ( | / | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (k)(p)(t)(v) | Software & Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (x) | Software & Services | SF | + | ( | / | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix | (x) | Software & Services | SF | + | 07/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mercer Advisors Inc | (k)(v) | Financial Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mercer Advisors Inc | (x) | Financial Services | SF | + | 10/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Model N Inc | (l)(v) | Software & Services | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Model N Inc | (x) | Software & Services | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Model N Inc | (x) | Software & Services | SF | + | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (k)(v) | Software & Services | SF | + | ( | / | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (x) | Software & Services | SA | + | 10/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NAVEX Global Inc | (x) | Software & Services | SF | + | ( | / | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NBG Home | (v)(y) | Consumer Durables & Apparel | 03/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NBG Home | (v)(y)(z) | Consumer Durables & Apparel | SF | + | PIK | 03/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc | (ad)(v) | Software & Services | SF | + | ( | / | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (p) | Software & Services | SF | + | ( | / | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SA | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NeoGov Newt Holdco Inc | (x) | Software & Services | SF | + | ( | / | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (v) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (k)(l)(v) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Documents | (x) | Software & Services | SF | + | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (l)(v) | Health Care Equipment & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (x) | Health Care Equipment & Services | SF | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Netsmart Technologies Inc | (x) | Health Care Equipment & Services | SF | + | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology Inc | (v) | Software & Services | SF | + | PIK | 06/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology Inc | (v) | Software & Services | SF | + | ( | / | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology Inc | (x) | Software & Services | SF | + | ( | / | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nordic Climate Group Holding AB | (v)(w) | Commercial & Professional Services | SR | + | ( | / | 06/2031 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
37
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nordic Climate Group Holding AB | (v)(w) | Commercial & Professional Services | E | + | ( | / | 06/2031 | € | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (k)(l)(v) | Software & Services | SF | + | ( | / | 12/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | ( | / | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OEConnection LLC | (x) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orion Services Group | (x) | Capital Goods | C | + | ( | / | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oxford Global Resources LLC | (k)(l)(p)(t)(v) | Commercial & Professional Services | SF | + | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oxford Global Resources LLC | (k)(l)(v) | Commercial & Professional Services | SF | + | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oxford Global Resources LLC | (x) | Commercial & Professional Services | SF | + | 08/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (v) | Health Care Equipment & Services | SF | + | 08/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (l)(v) | Health Care Equipment & Services | SF | + | 08/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PartsSource Inc | (x) | Health Care Equipment & Services | SF | + | 08/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (k)(v)(w) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (v)(w) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (w)(x) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (w)(x) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCI Pharma Services | (w)(x) | Health Care Equipment & Services | SF | + | 10/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (p)(t) | Capital Goods | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (x) | Capital Goods | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pike Corp | (x) | Capital Goods | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (v) | Health Care Equipment & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (x) | Health Care Equipment & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premise Health Holding Corp | (x) | Health Care Equipment & Services | SF | + | 11/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | (ad)(v) | Media & Entertainment | SF | + | PIK | 10/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROS Holdings Inc | (t) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROS Holdings Inc | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (v) | Transportation | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (k)(l)(v) | Transportation | SF | + | 04/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (x) | Transportation | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSC Group | (x) | Transportation | SF | + | 04/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSKW LLC (dba ConnectiveRx) | (k)(l)(p)(t)(v) | Health Care Equipment & Services | SF | + | 03/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (i)(k)(p)(v) | Capital Goods | SF | + | 04/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (v) | Capital Goods | SF | + | 04/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Radwell International LLC | (x) | Capital Goods | SF | + | 04/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (k)(v) | Commercial & Professional Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (x) | Commercial & Professional Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Railpros Inc | (x) | Commercial & Professional Services | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reliant Rehab Hospital Cincinnati LLC | (s)(v) | Health Care Equipment & Services | SF | + | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reliant Rehab Hospital Cincinnati LLC | (s)(v)(y)(z) | Health Care Equipment & Services | SF | + | ( | / | 02/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
38
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (k)(t)(v) | Commercial & Professional Services | SF | + | ( | / | 04/2032 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (x) | Commercial & Professional Services | SF | + | ( | / | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resa Power LLC | (x) | Commercial & Professional Services | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (l)(v) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (v) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revere Superior Holdings Inc | (x) | Software & Services | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rialto Capital Management LLC | (k)(l)(v) | Financial Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rialto Capital Management LLC | (x) | Financial Services | SF | + | 12/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rockefeller Capital Management LP | (v) | Financial Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rockefeller Capital Management LP | (x) | Financial Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safe-Guard Products International LLC | (k)(l)(t)(v) | Financial Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safe-Guard Products International LLC | (x) | Financial Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (v) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (v) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (x) | Software & Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SAMBA Safety Inc | (x) | Software & Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (k)(l)(v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (v) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (v) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (x) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Express Inc | (x) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (v) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (x) | Commercial & Professional Services | SF | + | ( | / | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service Logic LLC | (x) | Commercial & Professional Services | SF | + | 12/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shaw Development LLC | (v) | Capital Goods | SF | + | 10/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Source Code LLC | (l)(p)(t)(v) | Software & Services | SF | + | 07/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (k) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (v) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphera Solutions Inc | (x) | Software & Services | SF | + | 09/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spins LLC | (k)(t)(v) | Software & Services | SF | + | 01/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spins LLC | (x) | Software & Services | SF | + | 01/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (k)(l)(v) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (v) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (v) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Spotless Brands LLC | (x) | Consumer Services | SF | + | 07/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STV Group Inc | (k)(v) | Capital Goods | SF | + | 03/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STV Group Inc | (x) | Capital Goods | SF | + | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
39
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STV Group Inc | (x) | Capital Goods | SF | + | 03/2031 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summit Interconnect Inc | (t)(v) | Capital Goods | SF | + | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | 06/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | 06/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v) | Commercial & Professional Services | SF | + | PIK | 06/2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (x) | Commercial & Professional Services | SF | + | 06/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangoe LLC | (s)(v) | Software & Services | SF | + | ( | / | 06/2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangoe LLC | (s)(v)(y)(z) | Software & Services | PIK | 06/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | SF | + | 12/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | SF | + | 12/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (v) | Capital Goods | E | + | 12/2027 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (x) | Capital Goods | SF | + | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Manufacturing Co | (x) | Capital Goods | SF | + | 12/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trackunit ApS | (w)(x) | Software & Services | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (v) | Capital Goods | SF | + | ( | / | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (l) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (x) | Capital Goods | SF | + | ( | / | 06/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Turnpoint Services Inc | (x) | Capital Goods | SF | + | ( | / | 06/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings Ltd | (aa)(v)(w) | Capital Goods | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (k)(l)(p)(t)(v) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (v) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (x) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USIC Holdings Inc | (x) | Commercial & Professional Services | SF | + | 09/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (v)(w) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (w)(x) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Veriforce LLC | (w)(x) | Software & Services | SF | + | 11/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (l)(v) | Software & Services | SF | + | ( | / | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (x) | Software & Services | SF | + | ( | / | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vermont Information Processing Inc | (x) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Version1 Software Ltd | (v)(w) | Software & Services | E | + | ( | / | 07/2029 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Version1 Software Ltd | (w)(x) | Software & Services | E | + | ( | / | 07/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (v) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (k)(l)(v) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (v) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (x) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| VetCor Professional Practices LLC | (x) | Health Care Equipment & Services | SF | + | 08/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vitu | (k)(t)(v) | Software & Services | SF | + | 01/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vitu | (x) | Software & Services | SF | + | 01/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vytalogy Wellness LLC (fka Jarrow Formulas Inc) | (i)(t)(v) | Household & Personal Products | SF | + | 11/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
40
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Waste Services Group Pty Ltd | (v)(w) | Commercial & Professional Services | B | + | ( | / | 03/2032 | A$ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Waste Services Group Pty Ltd | (w)(x) | Commercial & Professional Services | B | + | ( | / | 03/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (v) | Financial Services | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (k)(v) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (x) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Enhancement Group LLC | (x) | Financial Services | SF | + | 10/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (k) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (x) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wedgewood Weddings | (x) | Consumer Services | SF | + | 06/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (k)(v) | Capital Goods | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (v) | Capital Goods | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (x) | Capital Goods | SF | + | ( | / | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West Star Aviation Inc | (x) | Capital Goods | SF | + | 05/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | (ad)(v)(w) | Capital Goods | ( | / | 12/2028 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | (ad)(v)(w) | Capital Goods | ( | / | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (v) | Capital Goods | SF | + | 04/2031 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (p) | Capital Goods | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (x) | Capital Goods | SF | + | 04/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Woolpert Inc | (x) | Capital Goods | SF | + | 04/2032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | ( | / | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (x)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (k)(v) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (v) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (x) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Xylem Kendall | (x) | Commercial & Professional Services | SF | + | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zellis Holdings Ltd | (v)(w) | Software & Services | SA | + | ( | / | 08/2031 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zellis Holdings Ltd | (w)(x) | Software & Services | SA | + | ( | / | 08/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zendesk Inc | (k)(l)(v) | Software & Services | SF | + | 11/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zendesk Inc | (x) | Software & Services | SF | + | 11/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zendesk Inc | (x) | Software & Services | SF | + | 11/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (l)(v) | Health Care Equipment & Services | SF | + | ( | / | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (v) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (x) | Health Care Equipment & Services | SF | + | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zeus Industrial Products Inc | (x) | Health Care Equipment & Services | SF | + | 02/2031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Loan Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
41
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c) | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—Second Lien— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC | (v) | Capital Goods | SF | + | 12/2028 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peraton Corp | (s)(v) | Capital Goods | SF | + | 02/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peraton Corp | (v) | Capital Goods | SF | + | 02/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | (ad)(v) | Consumer Durables & Apparel | SF | + | 07/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | (ad)(v) | Consumer Durables & Apparel | SF | + | 07/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Solera LLC | (v) | Software & Services | SF | + | 06/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v)(y) | Commercial & Professional Services | 03/2034 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sweeping Corp of America LLC | (v)(y) | Commercial & Professional Services | 03/2036 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Valeo Foods Group Ltd | (v)(w) | Food, Beverage & Tobacco | E | + | 10/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | (v)(y)(z) | Household & Personal Products | SF | + | PIK | 03/2032 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Senior Secured Debt— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cloud Software Group Inc (fka TIBCO Software Inc) | (aa)(v) | Software & Services | 03/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp | (v)(y)(z) | Software & Services | SF | + | ( | / | 05/2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (aa)(v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | 02/2030 | € | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG | (aa)(v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | 02/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc | (ac)(v) | Health Care Equipment & Services | PIK | 05/2032 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Senior Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debt— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp | (ad)(v) | Capital Goods | SF | + | ( | / | 03/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | (ad)(v) | Insurance | SF | + | PIK | 02/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | (ad)(s)(v)(w)(y)(z) | Capital Goods | PIK | 09/2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly Refinancing | (v)(w) | Software & Services | SF | + | PIK | 04/2033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cyncly Refinancing | (w)(x) | Software & Services | SF | + | PIK | 04/2033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leia Acquisition Ltd. (fka Swift Worldwide Resources Holdco Ltd) | (v) | Commercial & Professional Services | PIK | 07/2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC | (j)(u)(v)(y) | Telecommunication Services | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC | (j)(u)(v)(y) | Telecommunication Services | 04/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings Ltd | (v)(w) | Capital Goods | SF | + | 08/2030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings Ltd | (v)(w) | Capital Goods | SF | + | PIK | 08/2031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Debt Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
42
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Based Finance— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, ABF Equity | (ad)(v)(w)(y) | Equity Real Estate Investment Trusts (REITs) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, Structured Mezzanine | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | ( | / | 12/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abacus JV, ABF Equity | (ad)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accelerator Investments Aggregator LP, ABF Equity | (ac)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Altavair AirFinance, ABF Equity | (ac)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime II, ABF Equity | (ad)(v)(w) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime, Common Stock | (ad)(v)(w) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Auxilior Capital Partners Inc, Preferred Equity | (v) | Financial Services | ( | / | 04/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avenue One PropCo, ABF Equity | (ad)(v)(w)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avenue One PropCo, Term Loan | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Common Stock | (ad)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Subordinated Bond | (ad)(v)(w) | Financial Services | SR | + | 01/2034 | SEK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, ABF Equity | (ac)(v)(y) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(v) | Transportation | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(v) | Transportation | ( | / | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(x) | Transportation | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | (ac)(x) | Transportation | ( | / | 10/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Builders Capital Loan Acquisition Trust 2022-RTL1, Structured Mezzanine | (v)(w) | Real Estate Management & Development | 07/2030 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Byrider Finance LLC, ABF Equity | (u)(v)(y) | Automobiles & Components | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, ABF Equity | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, Structured Mezzanine | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | 12/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Curia Receivables II SPV LLC (FKA Curia Global Inc), Revolver | (v)(w) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Curia Receivables II SPV LLC (FKA Curia Global Inc), Revolver | (w)(x) | Pharmaceuticals, Biotechnology & Life Sciences | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Drive Revel, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fortna AR LLC (FKA Fortna Group Inc), Revolver | (v)(w) | Capital Goods | SF | + | 06/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, ABF Equity | (ad)(v)(y) | Transportation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Jet Capital LLC, Preferred Stock | (j)(u)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, ABF Equity | (ac)(v)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, ABF Equity | (ac)(v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, Term Loan | (ac)(v) | Financial Services | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, Term Loan | (ac)(x) | Financial Services | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
43
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Harley-Davidson Financial Services Inc, ABF Equity | (v)(w) | Financial Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Harley-Davidson Financial Services Inc, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Harley-Davidson Financial Services Inc, ABF Equity | (v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, ABF Equity | (ad)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Common Stock | (ad)(v)(w)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Preferred Stock | (ad)(v)(w) | Insurance | ( | / | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude II Offshore Aggregator LP, Partnership Interest | (ad)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest | (ad)(v)(w)(y)(z) | Capital Goods | 05/2026 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Chord IP Aggregator LP, Partnership Interest | (ad)(v)(w) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Rocket Loans Aggregator LLC, Partnership Interest | (ad)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest | (ad)(v)(w) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KSC I Aircraft LP, ABF Equity | (ad)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, ABF Equity | (ad)(v)(w)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | PIK | 03/2034 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | PIK | 04/2035 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | PIK | 06/2035 | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Newday Group Jersey Ltd, ABF Equity | (v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NewStar Clarendon 2014-1A Class D | (v)(w)(y) | Financial Services | 01/2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Norway_France, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nottingdale Receivables Limited (FKA TalkTalk Telecom Group Ltd), Revolver | (v)(w) | Telecommunication Services | SA | + | 09/2026 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nottingdale Receivables Limited (FKA TalkTalk Telecom Group Ltd), Revolver | (w)(x) | Telecommunication Services | SA | + | 09/2026 | £ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PayPal Danube 2, ABF Equity | (v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PayPal Europe Sarl et Cie SCA, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (v)(w) | Transportation | 10/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (v)(w) | Transportation | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (w)(x) | Transportation | 10/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Philippine Airlines 777, Term Loan | (w)(x) | Transportation | 12/2027 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Powin Energy Corp/NV, Warrants | (r)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, ABF Equity | (ad)(v)(w)(y) | Equity Real Estate Investment Trusts (REITs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
44
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Principal Amount(c)/ Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime ST LLC, Structured Mezzanine | (ad)(v)(w) | Equity Real Estate Investment Trusts (REITs) | ( | / | 03/2030 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential Opportunities I LLC, ABF Equity | (v)(y) | Real Estate Management & Development | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roemanu LLC, ABF Equity | (ad)(v) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, ABF Equity | (ad)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | (ad)(v)(w) | Financial Services | 11/2033 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Term Loan | (ad)(v)(w) | Financial Services | SF | + | 11/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Term Loan | (ad)(w)(x) | Financial Services | SF | + | 11/2032 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCRIPPS SPV LLC (FKA EW Scripps Co/The), Revolver | (v)(w) | Media & Entertainment | SF | + | 03/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCRIPPS SPV LLC (FKA EW Scripps Co/The), Revolver | (w)(x) | Media & Entertainment | SF | + | 03/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SKP German Bank, ABF Equity | (v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Slate Venture Holdings LP, ABF Equity | (v)(w) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Slate Venture Holdings LP, Term Loan | (v)(w) | Consumer Durables & Apparel | ( | / | 08/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Star Mountain Diversified Credit Income Fund III, LP, ABF Equity | (o)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Styron Receivables Funding Designated Activity Company (FKA Trinseo Materials), Revolver | (v)(w) | Materials | SF | + | 01/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Styron Receivables Funding Designated Activity Company (FKA Trinseo Materials), Revolver | (w)(x) | Materials | SF | + | 01/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SunPower Financial, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, ABF Equity | (ad)(v)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, Preferred Equity | (ad)(v)(w) | Financial Services | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TPSI Receivables LLC (Tropicana Products Inc), Revolver | (v)(w) | Food, Beverage & Tobacco | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TPSI Receivables LLC (Tropicana Products Inc), Revolver | (w)(x) | Food, Beverage & Tobacco | SF | + | 01/2029 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Secured Funding Trust, ABF Equity | (v)(w) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vehicle Secured Funding Trust, Term Loan | (v)(w) | Financial Services | 01/2046 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wood Group Receivables LLC (FKA John Wood Group PLC), Revolver | (v)(w) | Capital Goods | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wood Group Receivables LLC (FKA John Wood Group PLC), Revolver | (w)(x) | Capital Goods | SF | + | 10/2028 | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Asset Based Finance Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Partners JV, LLC— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | (ad)(v)(w) | Credit Opportunities Partners JV, LLC | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Credit Opportunities Partners JV, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
45
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity/Other— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Common Stock | (ac)(v)(y) | Commercial & Professional Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Common Stock | (ad)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Preferred Stock | (ad)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Preferred Stock | (ac)(v) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Common Stock | (ad)(v)(y) | Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Preferred Equity | (ad)(v)(y)(z) | Insurance | SF | + | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| American Vision Partners, Private Equity | (v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amerivet Partners Management Inc, Preferred Stock | (v)(y)(z) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| athenahealth Inc, Preferred Stock | (ac)(v) | Health Care Equipment & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-1 Common Stock | (ad)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-2 Common Stock | (ad)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Common Stock | (ad)(s)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc, Common Stock | (ac)(v)(y) | Consumer Discretionary Distribution & Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borden (New Dairy Opco), Common Stock | (ad)(h)(n)(y) | Food, Beverage & Tobacco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrant | (v)(y) | Food, Beverage & Tobacco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | (v)(y) | Food, Beverage & Tobacco | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | (v)(y) | Food, Beverage & Tobacco | 09/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CDS US Intermediate Holdings Inc, Common Stock | (v)(w)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cengage Learning, Inc, Common Stock | (v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC, Preferred Equity | (v)(y) | Capital Goods | 12/2028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Common Stock | (v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Equity | (v)(y)(z) | Software & Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Stock | (v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cubic Corp, Warrant | (v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversified Energy Co PLC, Common Stock | (aa)(n)(o)(w) | Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Common Stock | (n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | (n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | (n)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Trade Claim | (v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Class A Common Stock | (ad)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Equity | (ad)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Stock B | (ad)(n)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Common Stock | (ad)(s)(v)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Equity | (ad)(v) | Capital Goods | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | (ad)(j)(u)(v) | Materials | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Common Stock | (ad)(s)(v)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
46
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Portfolio Company(a) | Footnotes | Industry | Rate(b) | Floor | Maturity | Number of Shares | Amortized Cost | Fair Value(d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Preferred Stock | (ad)(s)(v)(y) | Commercial & Professional Services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kestra Financial Inc, Preferred Equity | (v) | Financial Services | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kestra Financial Inc, Preferred Equity | (x) | Financial Services | ( | / | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class A Common Stock | (n)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class Z Preferred Stock | (n)(w)(y) | Financial Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lipari Foods LLC, Common Stock | (v)(y) | Consumer Staples Distribution & Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Magna Legal Services LLC, Common Stock | (h)(y) | Commercial & Professional Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Med-Metrix, Common Stock | (v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Miami Beach Medical Group LLC, Common Stock | (v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Misys Ltd, Preferred Stock | (v)(w) | Software & Services | SF | + | PIK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class A-1 Common Stock | (ad)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class B-1 Common Stock | (ad)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class C Common Stock | (ad)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class I-1 Common Stock | (ad)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology Inc, Common Stock | (i)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Era Technology Inc, Preferred Stock | (i)(v)(y) | Software & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Common Stock | (ac)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A | (ac)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B | (ac)(v) | Health Care Equipment & Services | PIK | 10/2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Polyconcept North America Inc, Class A - 1 Units | (v)(y) | Household & Personal Products | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Common Stock | (ad)(v)(y) | Media & Entertainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units | (ac)(v)(w)(y) | Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC, Common Stock | (ad)(v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | (ad)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | (ad)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trade Claim | (ad)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trust Initial Funding Units | (ad)(v)(y) | Health Care Equipment & Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sorenson Communications LLC, Common Stock | (j)(u)(v)(y) | Telecommunication Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stuart Weitzman Inc, Common Stock | (v)(y) | Consumer Durables & Apparel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | (v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | (v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH, Common Stock | (ad)(v)(w)(y) | Capital Goods | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unfunded Equity/Other Commitments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS— | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS—( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET ASSETS—100% | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
47
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Foreign currency forward contracts
| Foreign Currency | Settlement Date | Counterparty | Amount and Transaction | US$ Value at Settlement Date | US$ Value at December 31, 2025 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||||||||||||||
| EUR | 2/15/2028 | JP Morgan Chase Bank | € | Sold | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
| EUR | 12/28/2029 | JP Morgan Chase Bank | € | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 1/20/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/25/2026 | JP Morgan Chase Bank | £ | Sold | ||||||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/31/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 4/2/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 8/28/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 8/28/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 9/14/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 9/14/2026 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 2/15/2028 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| GBP | 3/29/2029 | JP Morgan Chase Bank | £ | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 4/14/2027 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/21/2027 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 2/15/2028 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/30/2028 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 6/30/2028 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| SEK | 12/28/2029 | JP Morgan Chase Bank | SEK | Sold | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps
| Description | Hedged Item | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | Upfront Payments/Receipts | Change in Unrealized Appreciation/(Depreciation) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.875% Notes due 2029 | SOFR + | ING Capital Markets LLC | 8/15/2029 | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.875% Notes due 2029 | SOFR + | ING Capital Markets LLC | 8/15/2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2030 | SOFR + | ING Capital Markets LLC | 1/15/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2030 | SOFR + | ING Capital Markets LLC | 1/15/2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Swap | 6.125% Notes due 2031 | SOFR + | Royal Bank of Canada | 1/15/2031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________
(a)Security may be an obligation of one or more entities affiliated with the named company.
(b)Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2025, the Euro Interbank Offered Rate, or EURIBOR or “E”, was 2.03 %, Canadian Overnight Repo Rate Average, or CORRA or “C”, was 2.26 %, the Australian Bank Bill Swap Bid Rate, or BBSY or “B”, was 3.79 %, the Stockholm Interbank Offered Rate, or STIBOR or “SR”, was 1.96 %, the Sterling Interbank Offered Rate, or SONIA or “SA”, was 3.72 %, and the Secured Overnight Financing Rate, or SOFR or “SF”, was 3.65 %. PIK means paid-in-kind. PIK income accruals may be adjusted based on the performance of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases.
See notes to unaudited consolidated financial statements.
48
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
(c)Denominated in U.S. dollars unless otherwise noted.
(d)See Note 8 for additional information regarding the fair value of the Company’s financial instruments.
(e)Listed investments may be treated as debt for GAAP or tax purposes.
(f)Not used.
(g)Not used.
(h)Security held within CCT Holdings II LLC, a wholly-owned subsidiary of the Company.
(i)Security or portion thereof held within CCT Tokyo Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9).
(j)Security or portion thereof held within Cobbs Creek LLC and is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility.
(k)Security or portion thereof held within KKR - FSK CLO 3 LLC (see Note 9).
(l)Security or portion thereof held within KKR - FSK CLO 2 LLC (see Note 9).
(m)Security or portion thereof held within FS KKR MM CLO 1 LLC.
(n)Security held within FSIC II Investments, Inc., a wholly-owned subsidiary of the Company.
(o)Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company.
(p)Security or portion thereof held within Callowhill Street Funding LLC. and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with CIBC Bank (see Note 9).
(q)Not used.
(r)Security held within IC Northern Investments, LLC, a wholly-owned subsidiary of the Company.
(s)Security or portion thereof held within Juniata River LLC and is pledged as collateral supporting the amounts outstanding under a term loan credit facility with JPMorgan Chase Bank, N.A.
(t)Security or portion thereof held within Meadowbrook Run LLC and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Morgan Stanley Senior Funding, Inc. (see Note 9).
(u)Security or portion thereof held within Race Street Funding LLC. Security is available as collateral to support the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).
(v)Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).
(w)The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of December 31, 2025, 70.6 % of the Company’s total assets represented qualifying assets.
(x)Security is an unfunded commitment. Reflects the stated spread at the time of commitment, but may not be the actual rate received upon funding.
(y)Security is non-income producing.
(z)Asset is on non-accrual status.
(aa)Security is classified as Level 1 or Level 2 in the Company’s fair value hierarchy (see Note 8).
(ab)Position or portion thereof unsettled as of unsettled as of December 31, 2025.
(ac)Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2025, the Company held investments in portfolio companies of which it may be deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company may be deemed to be an affiliated person for the year ended December 31, 2025:
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
48Forty Solutions LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
49
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | $ | $ | $ | ( | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Constellis Holdings LLC(4) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Call Care Management Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerator Investments Aggregator LP, Private Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Altavair AirFinance, ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bond Aviation Holdings LLC, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GreenSky Holdings LLC, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Affordable Care Inc, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| athenahealth Inc, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belk Inc, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC, Private Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Constellis Holdings LLC, Preferred Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Common Stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Trade Claim | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
______________
(1)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
(2)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(3)Interest, PIK, fee and dividend and other income presented for the full year ended December 31, 2025.
See notes to unaudited consolidated financial statements.
50
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
(4)The Company held this investment as of December 31, 2024 but it was not deemed to be an “affiliated person” of the portfolio company as of December 31, 2024. Transfers in or out have been presented at amortized cost.
(ad)Under the Investment Company Act of 1940, as amended, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2025, the Company held investments in portfolio companies of which it may be deemed to be an “affiliated person” and may be deemed to “control”. During the year ended December 31, 2025, the Company disposed of investments in portfolio companies of which it may be deemed to be an “affiliated person” and may be deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company may be deemed to be an affiliated person and may be deemed to control for the year ended December 31, 2025:
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwise Inc(4) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
51
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FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, Structure Mezzanine | $ | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Abacus JV, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Australis Maritime II, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avenue One PropCo, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avenue One PropCo, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avida Holding AB, Subordinated Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Automotive LP, Structured Mezzanine | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discover Financial Services, Subordinated Loan | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discover Financial Services, ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Galaxy Container, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Altitude II Offshore Aggregator LP, Partnership Interest | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Chord IP Aggregator LP, Partnership Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Rocket Loans Aggregator LLC, Partnership Interest | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KSC I Aircraft LP, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Community Homes PropCo 2, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime St LLC, ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prime St LLC, Structured Mezzanine | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roemanu LLC (FKA Toorak Capital Partners LLC), ABF Equity | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, ABF Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sallie Mae Levered, Term Loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TDC LLP, ABF Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
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FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | $ | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity/Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accuride Corp, Preferred Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-2 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borden (New Dairy Opco), Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Stock B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Class A Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Stock, Series A | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Stock, Series B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HM Dunn Co Inc, Preferred Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HM Dunn Co Inc, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Preferred Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kilter Finance, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class A-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class B-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class C Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Inc, Class I-1 Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Preferred Stock, Series A PIK | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Preferred Stock, Series B PIK | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quoizel, LLC, Common Stock | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production Resource Group LLC, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trade Claim | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Trust Initial Funding Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wittur Holding GmbH, Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
53
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FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2025
(dollar amounts in millions, except per share amounts, unless otherwise noted)
| Portfolio Company | Fair Value at December 31, 2024 | Gross Additions(1) | Gross Reductions(2) | Net Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Fair Value at December 31, 2025 | Interest Income(3) | PIK Income(3) | Fee Income(3) | Dividend and Other Income(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwise Inc, Common Stock | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
______________
(1)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
(2)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(3)Interest, PIK, fee and dividend and other income presented for the full year ended December 31, 2025.
(4)The Company held this investment as of December 31, 2024 but it was not deemed to be in “control” of the portfolio company as of December 31, 2024. Transfers in or out have been presented at amortized cost.
See notes to unaudited consolidated financial statements.
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Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 1. Principal Business and Organization
FS KKR Capital Corp. (NYSE: FSK), or the Company, was incorporated under the general corporation laws of the State of Maryland on December 21, 2007 and formally commenced investment operations on January 2, 2009. The Company is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, the Company has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a regulated investment company, or RIC, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. The Company has various wholly-owned subsidiaries, including special-purpose financing subsidiaries and subsidiaries through which it holds interests in portfolio companies. The unaudited consolidated financial statements include both the Company’s accounts and the accounts of its wholly-owned subsidiaries as of September 30, 2026. All intercompany transactions have been eliminated in consolidation. Certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state income taxes.
The Company’s investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The Company’s portfolio is comprised primarily of investments in senior secured loans and second lien secured loans of private middle-market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. In addition, a portion of the Company’s portfolio may be comprised of equity and equity-related securities, corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For a more complete discussion of significant accounting policies and certain other information, the Company’s interim unaudited consolidated financial statements should be read in conjunction with its audited consolidated financial statements as of and for the year ended December 31, 2025 included in the Company’s annual report on Form 10-K for the year ended December 31, 2025. Operating results for the nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The December 31, 2025 consolidated balance sheet and consolidated schedule of investments are derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025. The Company is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies under Financial Accounting Standards Board, or the FASB, Accounting Standards Codification, or ASC, Topic 946, Financial Services—Investment Companies. The Company has evaluated the impact of subsequent events through the date the consolidated financial statements were issued and filed with the U.S. Securities and Exchange Commission, or the SEC. The Company has concluded that there are no subsequent events that would require adjustment or disclosure in the consolidated financial statements.
Use of Estimates: The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Segment Reporting: In accordance with ASC Topic 280, Segment Reporting, the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.
Cash and Cash Equivalents: Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market account. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. All cash balances are maintained with high credit quality financial institutions, which are members of the Federal Deposit Insurance Corporation. The Company’s cash and cash equivalents are held with major financial institutions and generally may exceed federally insured limits.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 2. Summary of Significant Accounting Policies (continued)
Capital Gains Incentive Fee: Pursuant to the terms of the Advisory Agreement, the incentive fee on capital gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement). This fee equals 20.0 % of the Company’s incentive fee capital gains, which will equal the realized capital gains of Corporate Capital Trust, Inc., or CCT, (as predecessor-by-merger to the Company), FS KKR Capital Corp. II, or FSKR, (as predecessor-by-merger to the Company) and the Company (without duplication) on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation (without duplication) on a cumulative basis, less the aggregate amount of any capital gain incentive fees previously paid by CCT, FSKR and the Company. On a quarterly basis, the Company accrues for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period.
The Company includes unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to the Adviser if the Company’s entire portfolio was liquidated at its fair value as of the balance sheet date even though the Adviser is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.
Subordinated Income Incentive Fee: Pursuant to the terms of the Advisory Agreement, the Adviser may also be entitled to receive a subordinated income incentive fee. The subordinated income incentive fee under the Advisory Agreement, which is calculated and payable quarterly in arrears, equals 17.5 % of the Company’s “pre-incentive fee net investment income” for the immediately preceding quarter and is subject to a hurdle rate, expressed as a rate of return on the value of the Company’s net assets, equal to 1.75 % per quarter, or an annualized hurdle rate of 7.0 %. As a result, the Adviser will not earn this incentive fee for any quarter until the Company’s pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.75 %. Once the Company’s pre-incentive fee net investment income in any quarter exceeds the hurdle rate, the Adviser will be entitled to a “catch-up” fee equal to the amount of the pre-incentive fee net investment income in excess of the hurdle rate, until the Company’s pre-incentive fee net investment income for such quarter equals 2.12 %, or 8.48 % annually, of net assets. Thereafter, the Adviser will be entitled to receive 17.5 % of pre-incentive fee net investment income.
On June 29, 2026, the Adviser delivered to the Company a waiver letter, or the Waiver Letter, pursuant to which, beginning with the fiscal quarter ending June 30, 2026 and continuing through and including the fiscal quarter ending March 31, 2027, or the Waiver Period, the Adviser has agreed to waive 50 % of the subordinated income incentive fee that the Adviser would otherwise be entitled to receive from the Company under the Advisory Agreement for each fiscal quarter during the Waiver Period. No portion of such waived subordinated income incentive fee will be subject to recoupment.
Revenue Recognition: Security transactions are accounted for on the trade date. The Company records interest income on an accrual basis to the extent that it expects to collect such amounts. The Company records dividend income on the ex-dividend date. Distributions received from limited liability company, or LLC, and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. The Company holds investments in certain preferred securities that accumulate paid-in-kind interest income, or PIK income, to be paid upon the redemption, liquidation or maturity of the underlying investment. Such PIK income is accumulated onto the principal balance of the respective security. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. The Company’s policy is to place investments on non-accrual status when there is reasonable doubt that interest income will be collected. The Company considers many factors relevant to an investment when placing it on or removing it from non-accrual status including, but not limited to, the delinquency status of the investment, economic and business conditions, the overall financial condition of the underlying investment, the value of the underlying collateral, bankruptcy status, if any, and any other facts or circumstances relevant to the investment. If there is reasonable doubt that the Company will receive any previously accrued interest, then the accrued interest will be written-off. When a PIK income-paying investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed through PIK income. Payments received on non-accrual investments may be applied to principal or, depending upon the collectability of the remaining principal and interest, recognized as income. Non-accrual investments may be restored to accrual status when principal and interest become current and are likely to remain current based on the Company’s judgment.
Derivative Instruments: The Company’s derivative instruments include foreign currency forward contracts and interest rate swaps. The Company has designated certain interest rate swaps as hedging instruments in a qualifying fair value hedge accounting relationship, and as a result, the change in fair value of the hedging instruments and hedged items are recorded in and recognized as
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 2. Summary of Significant Accounting Policies (continued)
components of interest expense in the Company’s consolidated statements of operations. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the corresponding fixed rate debt.
For all other derivatives, the Company does not utilize hedge accounting and recognizes such derivative instruments as assets or liabilities at fair value in its consolidated financial statements. Changes in fair value of derivative contracts entered into by the Company which have not been designated as hedging instruments are recognized through the net change in unrealized appreciation (depreciation) on derivative instruments in the consolidated statements of operations. Realized gains and losses on the derivative instruments are included in net realized gains (losses) on derivative instruments in the consolidated statements of operations.
Recent Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, or ASU 2024-03, which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning with the first quarter ended March 31, 2028. Early adoption and retrospective application is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.
In September 2026, the FASB issued ASU 2026-03, Fair Value Measurement—Investment Companies With Equity Securities Subject to Contractual Sale Restrictions, or ASU 2026-03, which requires investment companies to consider the effect of contractual sale restrictions when measuring the fair value of equity securities subject to such restrictions. ASU 2026-03 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption and retrospective application is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.
Note 3. Share Transactions
Below is a summary of transactions with respect to shares of the Company’s common stock during the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||
| Company Share Repurchase Authorization | ( | $ | ( | |||||||||||||||||||||||
| Net Proceeds from Share Transactions | ( | $ | ( | |||||||||||||||||||||||
During the nine months ended September 30, 2026, the administrator for the Company’s distribution reinvestment plan, or DRP, purchased 807,122 shares of common stock in the open market at an average price per share of $10.65 (totaling $9 ) pursuant to the DRP, and distributed such shares of common stock to participants in the DRP. During the nine months ended September 30, 2025, the administrator for the Company’s DRP purchased 695,324 shares of common stock in the open market at an average price per share of $21.19 (totaling $15 ) pursuant to the DRP, and distributed such shares of common stock to participants in the DRP. During the period from October 1, 2026 to October 30, 2026, the administrator for the Company’s DRP purchased 361,214 shares of common stock in the open market at an average price per share of $11.11 (totaling $4 ) pursuant to the DRP, and distributed such shares of common stock to participants in the DRP. For additional information regarding the terms of the DRP, see Note 5.
Convertible Preferred Stock
On June 29, 2026, the Company issued and sold 6,000,000 shares of its Cumulative Convertible Perpetual Preferred Stock, Series A, or the Convertible Preferred Stock, to KKR Alternative Assets L.P., a Delaware limited partnership, or the Purchaser, pursuant to a purchase agreement, dated May 10, 2026, with the Purchaser, or the Purchase Agreement, at a price of $25.00 per share, or the Closing. See “Note 4. Related Party Transactions” for more information.
Share Repurchase Program
On May 6, 2026, the Company’s board of directors, or the Board of Directors or the Board, authorized the repurchase by the Company of up to $300 in aggregate amount of the Company’s common stock in the open market, by tender offer or in privately negotiated purchases in compliance with the Exchange Act of 1934, as amended, or the Exchange Act, and other applicable law, or the Company Share Repurchase Authorization. The Company Share Repurchase Authorization is scheduled to expire on June 1, 2027,
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 3. Share Transactions (continued)
unless extended, or until the aggregate repurchase amount that has been approved by the Board has been expended. The timing, manner, price and amount of any share repurchases will be determined by the Company based upon the evaluation of economic and market conditions, the market price of the shares, applicable legal, contractual and regulatory requirements and other factors. The Company Share Repurchase Authorization does not require the Company to repurchase any specific number of shares of the Company’s common stock and the Company cannot assure its stockholders that any shares will be repurchased under the program. The Company Share Repurchase Authorization may be suspended, extended, modified or discontinued at any time.
During the nine months ended September 30, 2026, the Company repurchased 6,533,672 shares of common stock pursuant to the Company Share Repurchase Authorization at an average price per share (inclusive of commissions paid) of $11.20 (totaling $73 ). During the period from October 1, 2026 to October 30, 2026, the Company repurchased 1,546,162 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $10.88 (totaling $17 ). All such repurchases were made on the Company’s behalf by a third-party agent on the open market at prices below net asset value per share in transactions intended to qualify for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act.
“At the Market” Offering
On May 9, 2025, the Company and the Adviser entered into separate equity distribution agreements, or the Equity Distribution Agreements, with each of Truist Securities, Inc., RBC Capital Markets, LLC, KKR Capital Markets LLC, and SMBC Nikko Securities America, Inc., or the Sales Agents. The Equity Distribution Agreements provide that the Company may, from time to time, issue and sell shares of its common stock, having an aggregate offering price of up to $750 through the Sales Agents or to them as principals for their own respective accounts, in an “at the market offering” (as defined in Rule 415 under the Securities Act of 1933, as amended, or the Securities Act), or the ATM Program.
Sales of shares of common stock in the ATM Program, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market,” as defined in Rule 415 under the Securities Act, including sales made directly on The New York Stock Exchange, or the NYSE, or a similar securities exchange or sales made to or through a market maker other than on an exchange and by any other method permitted by law, which may include block trades, at prices related to prevailing market prices or negotiated prices.
The Sales Agents will receive a commission from the Company of up to 1.5 % of the gross sales price of any shares of common stock sold through such Sales Agent in the ATM Program under the Equity Distribution Agreements. The offering price per share of shares of common stock less commissions payable under the Equity Distribution Agreements and discounts, if any, will not be less than the net asset value per share of the Company’s common stock at the time of such sale, provided, that the Adviser may, but is not obligated to, from time to time, in its sole discretion, pay some or all of the commissions payable under the Equity Distribution Agreements or make additional supplemental payments to ensure that the sales price per share of any shares of common stock sold in the offering will not be less than the Company’s then-current net asset value per share. Any such payments made by the Adviser will not be subject to reimbursement by the Company.
During the nine months ended September 30, 2026, the Company did not issue or sell shares of its common stock under the Equity Distribution Agreements.
Note 4. Related Party Transactions
Compensation of the Investment Adviser
Pursuant to the Advisory Agreement, the Adviser is entitled to a base management fee calculated at an annual rate of 1.50 % of the average weekly value of the Company’s gross assets excluding cash and cash equivalents (gross assets equal the total assets of the Company as set forth on the Company’s consolidated balance sheets) and an incentive fee based on the Company’s performance. Effective June 15, 2019, in connection with stockholder approval of the modification of the asset coverage requirement applicable to senior securities from 200 % to 150 %, the Adviser reduced (by permanent waiver) the annual base management fee payable under the Advisory Agreement from 1.5 % to 1.0 % on all assets financed using leverage over 1.0x debt-to-equity. The base management fee is payable quarterly in arrears. All or any part of the base management fee not taken as to any quarter will be deferred without interest and may be taken in such other quarter as the Adviser determines. See Note 2 for a discussion of the capital gains and subordinated income incentive fees that the Adviser may be entitled to under the Advisory Agreement.
The Adviser has agreed to exclude from the calculation of the subordinated income incentive fee and the incentive fee on capital gains any changes to the fair value recorded for the assets and liabilities of FSKR resulting solely from the new cost basis of the
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 4. Related Party Transactions (continued)
acquired FSKR investments determined in accordance with ASC Topic 805-50, Business Combinations—Related Issues as a result of the June 16, 2021 merger of FSKR.
On June 29, 2026, the Adviser delivered the Waiver Letter to the Company, pursuant to which, during the Waiver Period beginning with the fiscal quarter ending June 30, 2026 and continuing through and including the fiscal quarter ending March 31, 2027, the Adviser has agreed to waive 50 % of the subordinated income incentive fee that the Adviser would otherwise be entitled to receive from the Company under the Advisory Agreement for each fiscal quarter during the Waiver Period. No portion of such waived subordinated income incentive fee will be subject to recoupment.
On April 9, 2018, the Company entered into an administration agreement with the Adviser, or the Administration Agreement. Pursuant to the Administration Agreement, the Adviser oversees the Company’s day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, certain government and regulatory affairs activities, and other administrative services. The Adviser also performs, or oversees the performance of, the Company’s corporate operations and required administrative services, which includes being responsible for the financial records that the Company is required to maintain and preparing reports for the Company’s stockholders and reports filed with the SEC. In addition, the Adviser assists the Company in calculating its net asset value, overseeing the preparation and filing of tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others.
Pursuant to the Administration Agreement, the Company reimburses the Adviser for expenses necessary to perform services related to its administration and operations, including the Adviser’s allocable portion of the compensation and related expenses of certain personnel of Franklin Square Holdings, L.P. (which does business as Future Standard), or Future Standard, and KKR Credit Advisors (US), LLC, or KKR Credit, providing administrative services to the Company on behalf of the Adviser. The Company reimburses the Adviser no less than quarterly for all costs and expenses incurred by the Adviser in performing its obligations and providing personnel and facilities under the Administration Agreement. The Adviser allocates the cost of such services to the Company based on factors such as total assets, revenues, time allocations and/or other reasonable metrics. The Board of Directors reviews the methodology employed in determining how the expenses are allocated to the Company and the proposed allocation of administrative expenses among the Company and certain affiliates of the Adviser. The Board of Directors then assesses the reasonableness of such reimbursements for expenses allocated to it based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party service providers known to be available. In addition, the Board of Directors considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Board of Directors compares the total amount paid to the Adviser for such services as a percentage of the Company’s net assets to the same ratio as reported by other comparable BDCs.
The following table describes the fees and expenses accrued under the Advisory Agreement and the Administration Agreement, as applicable, during the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| Related Party | September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
| Source Agreement | Description | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||
| The Adviser | Advisory Agreement | Base Management Fee(1) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| The Adviser | Advisory Agreement | Subordinated Income Incentive Fee(2) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| The Adviser | Administration Agreement | Administrative Services Expenses(3) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
________________
(1)During the nine months ended September 30, 2026 and 2025, $142 and $158 , respectively, in base management fees were paid to the Adviser. As of September 30, 2026, $42 in base management fees were payable to the Adviser.
(2)The Adviser agreed to waive 50 % of the subordinated income incentive fee that the Adviser would otherwise be entitled to receive from the Company under the Advisory Agreement for each fiscal quarter during the Waiver Period. No portion of such waived subordinated income incentive fee will be subject to recoupment. During the nine months ended September 30, 2026, the amount shown is net of waivers of $(23 ). During the nine months ended September 30, 2026 and 2025, $64 and $110 , respectively, of subordinated income incentive fees were paid to the Adviser. As of September 30, 2026, subordinated income incentive fees of $12 were payable to the Adviser.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 4. Related Party Transactions (continued)
Potential Conflicts of Interest
The members of the senior management and investment teams of the Adviser serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as the Company does, or of investment vehicles managed by the same personnel. For example, the Adviser is the investment adviser to KKR FS Income Trust and KKR FS Income Trust Select, and the officers, managers and other personnel of the Adviser may serve in similar or other capacities for the investment advisers to future investment vehicles affiliated with Future Standard or KKR Credit. In serving in these multiple and other capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the Company’s best interests or in the best interest of the Company’s stockholders. The Company’s investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment vehicles. For additional information regarding potential conflicts of interest, see the Company’s annual report on Form 10-K for the year ended December 31, 2025.
Exemptive Relief
As a BDC, the Company is subject to certain regulatory restrictions in making its investments. For example, BDCs generally are not permitted to co-invest with certain affiliated entities in transactions originated by the BDC or its affiliates in the absence of an exemptive order from the SEC. However, BDCs are permitted to, and may, simultaneously co-invest in transactions where price is the only negotiated term. We may also be prohibited under the 1940 Act from conducting certain transactions with our affiliates without the prior approval of a majority of our directors who are not interested persons.
In an order dated June 4, 2013, or the FS Order, the SEC granted exemptive relief permitting the Company, subject to the satisfaction of certain conditions, to co-invest in certain privately negotiated investment transactions with certain affiliates of its former investment adviser and any future BDCs that are advised by its former investment adviser or its affiliated investment advisers. However, in connection with the investment advisory relationship with the Adviser, and in an effort to mitigate potential future conflicts of interest, the Board of Directors authorized and directed that the Company (i) withdraw from the FS Order, except with respect to any transaction in which the Company participated in reliance on the FS Order prior to April 9, 2018, and (ii) rely on an exemptive relief order, dated January 5, 2021, that permitted the Company, subject to the satisfaction of certain conditions, to co-invest in certain privately negotiated investment transactions, including investments originated and directly negotiated by the Adviser or KKR Credit, with certain affiliates of the Adviser.
On June 11, 2026, the Company and the Adviser received an updated form of co-investment exemptive relief from the SEC, or the Co-Investment Exemptive Order, to allow certain managed funds and investment vehicles, each of whose investment adviser is the Adviser or an investment adviser controlling, controlled by or under common control with the Adviser, or other affiliated entities, to participate in negotiated co-investment transactions, including investments originated and directly negotiated by the Adviser or KKR Credit, where doing so is consistent with regulatory requirements and other pertinent factors, and pursuant to the conditions of the exemptive relief. The Co-Investment Exemptive Order supersedes the January 5, 2021 co-investment exemptive relief order and simplifies certain of the conditions and provides more flexibility than the prior order.
Convertible Preferred Stock
On May 10, 2026, the Company entered into the Purchase Agreement with the Purchaser, pursuant to which the Purchaser agreed to purchase $150 in aggregate amount of newly issued shares of the Convertible Preferred Stock. On June 29, 2026, the Company issued and sold 6,000,000 shares of Convertible Preferred Stock to the Purchaser pursuant to the Purchase Agreement at a price of $25.00 per share.
In connection with the issuance of the Convertible Preferred Stock, the Company filed Articles Supplementary, or the Articles Supplementary, with the State Department of Assessments and Taxation of the State of Maryland. The Convertible Preferred Stock is a series of the Company’s preferred stock, par value $0.001 per share.
The Convertible Preferred Stock ranks senior to the Company’s common stock with respect to all liquidation, winding up, dissolution, dividend and distribution rights. The Convertible Preferred Stock has a liquidation preference equal to $25.00 per share, or the Liquidation Preference, plus an amount equal to all accrued but unpaid dividends, if any, accumulated to (but excluding) the date fixed for distribution or payment, whether or not earned or declared by the Company, but excluding interest on any such distribution or payment. Dividends on the Convertible Preferred Stock will be payable on a quarterly basis in an initial amount equal to 5.00 % per annum of the Liquidation Preference per share, payable in cash or, at the Company’s option, 7.00 % per annum of the Liquidation Preference per share payable in additional shares of Convertible Preferred Stock; provided that the Company shall be prohibited from paying dividends in additional shares of Convertible Preferred Stock if the conversion feature at the time of issuance of such additional
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 4. Related Party Transactions (continued)
shares is equal to or greater than 10.00 % of the value of the Convertible Preferred Stock. After the 5.5 -year anniversary of the issue date, the dividend rate will increase annually by 1.00 % per annum. There is no cap on such 1.00 % per annum increases.
After the 6 -month anniversary of the issue date, the Convertible Preferred Stock will be convertible into (i) the number of shares of common stock equal to the quotient of (a) the Liquidation Preference, plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such conversion and (b) the conversion price as of the applicable conversion date (which shall not be less than the NYSE Minimum Price (as defined below)), plus (ii) cash in lieu of fractional shares. The initial conversion price will equal $18.83 ; provided, however, that in no event shall the conversion price be less than the NYSE Minimum Price.
At any time, upon approval by the Board, including a majority of the independent directors, the Company may, at its election, redeem all or any part of the then-outstanding shares of Convertible Preferred Stock in cash at a price per share equal to the Liquidation Preference, plus an amount equal to all accumulated but unpaid dividends, if any, accumulated to (but excluding) the date fixed for redemption, whether or not earned or declared by the Company, but excluding interest on any such distribution or payment. At any time on or after the three-year anniversary of the issue date, upon approval by the Board, including a majority of the independent directors, so long as the volume weighted average price of the Company’s shares of common stock on the NYSE for the 30 consecutive trading days ending on (and including) the trading day immediately preceding the date on which the Company delivers notice of redemption equals or exceeds the conversion price then in effect, the Company may, at its election, redeem all or any part of the then-outstanding shares of Convertible Preferred Stock by delivering shares of common stock in lieu of cash, at a redemption price equal to the Liquidation Preference, plus an amount equal to all accumulated but unpaid dividends, if any, accumulated to (but excluding) the date fixed for redemption, whether or not earned or declared by the Company, but excluding interest on any such distribution or payment, with the number of shares of common stock to be delivered per share of Convertible Preferred Stock equal to the quotient of (a) such redemption price per share and (b) the conversion price as of the applicable redemption date, plus cash in lieu of any fractional shares. The holders of the Convertible Preferred Stock will have the right to convert any of their shares prior to the date fixed for any such redemption.
At any time after the 6 -year anniversary of the issue date, upon 90 days’ notice, any holder of shares of Convertible Preferred Stock will have the option, at its election, to require the Company to redeem any or all of the shares of Convertible Preferred Stock held by such holder for cash consideration equal to the Liquidation Preference of the shares of Convertible Preferred Stock to be redeemed, plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such redemption. Any such holder will have the right to convert any shares of Convertible Preferred Stock held by it prior to the date fixed for any such redemption.
Upon the occurrence of a Change of Control of the Company (as defined in the Articles Supplementary), at the option of holders of a majority of the then-outstanding shares of Convertible Preferred Stock, the Company will be required to redeem all of the then-outstanding shares of Convertible Preferred Stock upon 60 days’ notice following the announcement or occurrence of such Change of Control, for cash consideration equal to the Liquidation Preference thereof, plus an amount equal to all accumulated but unpaid dividends thereon to, but excluding, the redemption date (whether or not earned or declared, but excluding interest). Holders of Convertible Preferred Stock will have the right to convert any of their shares prior to the date fixed for such Change of Control redemption.
Pursuant to the Purchase Agreement, the Purchaser has agreed that, prior to June 29, 2027 (the date that is one year following the Closing), or the Restriction Date, it will not sell, offer, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, otherwise transfer or dispose of or enter into any swap or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic consequences of ownership of any Convertible Preferred Stock or shares of common stock into which the Convertible Preferred Stock has been or may be converted, subject to exceptions for (i) redemption of Convertible Preferred Stock by the Company pursuant to the Articles Supplementary and (ii) the Purchaser’s exercise of its conversion right pursuant to the Articles Supplementary. Following the Restriction Date, the Purchaser will be required to notify the Board of any transfer substantially concurrently therewith.
Each holder of Convertible Preferred Stock will be entitled to vote on an as-converted basis on each matter submitted to a vote of stockholders of the Company. In addition, for so long as the Company is subject to the 1940 Act, the holders of Convertible Preferred Stock, voting separately as a single class, shall have the right to elect two members of the Board at all times (initially designated as James H. Kropp and Elizabeth J. Sandler), and the balance of the directors shall be elected by the holders of shares of common stock and the Convertible Preferred Stock voting together; provided, however, if the Adviser is the Company’s investment adviser and the Purchaser or its affiliates beneficially own greater than 50 % of the outstanding Convertible Preferred Stock, the independent directors of the Company will be eligible to serve as directors elected separately by the holders of Convertible Preferred
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 4. Related Party Transactions (continued)
Stock. If, at any time, accumulated dividends on the outstanding shares of Convertible Preferred Stock equal to at least two full years’ dividends shall be due and unpaid, or if holders of any other preferred stock become entitled to elect a majority of directors of the Company under the 1940 Act, then the number of directors constituting the Board shall automatically increase by the smallest number that, when added to the two directors elected exclusively by holders of the Convertible Preferred Stock, would constitute a majority of the Board. During any such period, the holders of the Convertible Preferred Stock and any other preferred stock shall have the power to elect such additional directors, voting separately as a class.
“NYSE Minimum Price” means the lower of (x) the official closing price of the shares of common stock on the NYSE immediately preceding the signing of the Purchase Agreement and (y) the average official closing price of the shares of common stock on the NYSE for the five trading days immediately preceding the signing of the Purchase Agreement, in each case, as adjusted pursuant to certain anti-dilution adjustments.
The shares of Convertible Preferred Stock were offered and sold in reliance on Section 4(a)(2) of the Securities Act. These securities have not been and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable.
In connection with the Closing, on June 29, 2026, the Company entered into a registration rights agreement, or the Registration Rights Agreement, pursuant to which the Purchaser (and certain permitted transferees) has the right to require the Company to register for resale under the Securities Act shares of common stock issued upon conversion of the Convertible Preferred Stock and certain other shares of common stock held by the Purchaser and its affiliates as of the date of the Closing, or collectively, the Registrable Securities. The Purchaser will have demand registration rights (not to exceed three Demand Requests (as defined in the Registration Rights Agreement) in any 365 -day period), customary piggyback registration rights in connection with registered offerings of equity securities by the Company or other selling stockholders, and the right to require the Company to use commercially reasonable efforts to maintain a continuously effective shelf registration statement on Form N-2 covering the Registrable Securities from and after December 29, 2026 (the date that falls six months after the Closing) until the Purchaser has sold all Registrable Securities. The Registration Rights Agreement includes customary indemnification and contribution provisions, which survive termination of the Registration Rights Agreement.
The Company evaluated the Convertible Preferred Stock under ASC Topic 480, Distinguishing Liabilities from Equity, and concluded it is not a liability because it is not mandatorily redeemable and does not otherwise meet the definition of a liability. Because certain redemption rights are not solely within the Company’s control, the Convertible Preferred Stock is presented as temporary equity and initially measured at fair value. For subsequent periods, the carrying amount of the Convertible Preferred Stock is its redemption value. Costs associated with the issuance of the Convertible Preferred Stock were borne by the Adviser.
As of September 30, 2026, there were no scheduled redemption requirements associated with the Convertible Preferred Stock during the five years following the balance sheet date.
Affiliated Borrowings
The Company is permitted to borrow from an affiliate of the Adviser. Such borrowings do not accrue interest, are unsecured and are repaid within 1-2 days. There were no borrowings outstanding under this arrangement during the periods presented.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 5. Distributions
Common Stock Distributions
The following tables reflect the distributions per share that the Company has declared on its common stock during the nine months ended September 30, 2026 and 2025:
For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| February 19, 2026 | March 18, 2026 | April 2, 2026 | $ | |||||||||||||||||||||||
| May 6, 2026 | June 17, 2026 | July 2, 2026 | ||||||||||||||||||||||||
| August 5, 2026 | September 16, 2026 | October 2, 2026 | ||||||||||||||||||||||||
| Total Dividends Declared | $ | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| February 25, 2025 | March 19, 2025 | April 2, 2025 | $ | |||||||||||||||||||||||
| May 5, 2025 | June 18, 2025 | July 2, 2025 | ||||||||||||||||||||||||
| July 31, 2025 | September 17, 2025 | October 2, 2025 | ||||||||||||||||||||||||
| Total Dividends Declared | $ | |||||||||||||||||||||||||
On October 7, 2026, the Board of Directors declared a regular quarterly distribution of $0.44 per share, which will be paid on or about December 24, 2026 to common stockholders of record as of the close of business on December 16, 2026. Additionally, on October 7, 2026, the Board of Directors declared a special distribution of $0.20 per share, which will be paid on or about December 15, 2026 to common stockholders of record as of the close of business on December 1, 2026. The timing and amount of any future distributions to common stockholders are subject to applicable legal restrictions and the sole discretion of the Board of Directors.
Pursuant to the DRP, the Company will reinvest all cash dividends or distributions declared by the Board of Directors on behalf of common stockholders who do not elect to receive their distributions in cash. As a result, if the Board of Directors declares a distribution, then common stockholders who have not elected to “opt out” of the DRP will have their distributions automatically reinvested in additional shares of the Company’s common stock.
With respect to each distribution pursuant to the DRP, the Company reserves the right to either issue new shares of common stock or purchase shares of common stock in the open market in connection with implementation of the DRP. Unless the Company, in its sole discretion, otherwise directs the plan administrator, (A) if the per share market price (as defined in the DRP) is equal to or greater than the estimated net asset value per share (rounded up to the nearest whole cent) of the Company’s common stock on the payment date for the distribution, then the Company will issue shares of common stock at the greater of (i) net asset value per share of common stock or (ii) 95 % of the market price; or (B) if the market price is less than the net asset value per share, then, in the sole discretion of the Company, (i) shares of common stock will be purchased in open market transactions for the accounts of participants to the extent practicable, or (ii) the Company will issue shares of common stock at net asset value per share. Pursuant to the terms of the DRP, the number of shares of common stock to be issued to a participant will be determined by dividing the total dollar amount of the distribution payable to a participant by the price per share at which the Company issues such shares; provided, however, that shares of common stock purchased in open market transactions by the plan administrator will be allocated to a participant based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market.
If a stockholder receives distributions in the form of common stock pursuant to the DRP, such stockholder generally will be subject to the same federal, state and local tax consequences as if it elected to receive distributions in cash. If the Company’s common stock is trading at or below net asset value, a stockholder receiving distributions in the form of additional common stock will be treated as receiving a distribution in the amount of cash that they would have received if they had elected to receive the distribution in cash. If the Company’s common stock is trading above net asset value, a stockholder receiving distributions in the form of additional common stock will be treated as receiving a distribution in the amount of the fair market value of the Company’s common stock. The stockholder’s basis for determining gain or loss upon the sale of common stock received in a distribution will be equal to the total
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 5. Distributions (continued)
dollar amount of the distribution payable to the stockholder. Any stock received in a distribution will have a holding period for tax purposes commencing on the day following the day on which the shares of common stock are credited to the stockholder’s account.
The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including proceeds from the sale of shares of the Company’s common stock, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. During certain periods, the Company’s distributions may exceed its earnings. As a result, it is possible that a portion of the distributions the Company makes may represent a return of capital. A return of capital generally is a return of a stockholder’s investment rather than a return of earnings or gains derived from the Company’s investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, which is a nontaxable distribution) will be mailed to the Company’s stockholders, as appropriate. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.
The following table reflects the sources of the cash distributions on a tax basis that the Company has paid on its common stock during the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Source of Distribution | Distribution Amount | Percentage | Distribution Amount | Percentage | ||||||||||||||||||||||
| Return of capital | $ | $ | ||||||||||||||||||||||||
Net investment income(1) | % | % | ||||||||||||||||||||||||
| Short-term capital gains proceeds from the sale of assets | ||||||||||||||||||||||||||
| Long-term capital gains proceeds from the sale of assets | ||||||||||||||||||||||||||
| Total | $ | % | $ | % | ||||||||||||||||||||||
________________
(1)During the nine months ended September 30, 2026 and 2025, 84.3 % and 83.5 %, respectively, of the Company’s gross investment income was attributable to cash income earned, 1.5 % and 2.1 %, respectively, was attributable to non-cash accretion of discount and 14.2 % and 14.4 %, respectively, was attributable to PIK interest.
Convertible Preferred Stock Dividends
Holders of the Convertible Preferred Stock are entitled to receive cumulative dividends at an annual rate of 5.00 % of the Liquidation Preference per share, computed on the basis of a 360-day year consisting of twelve 30-day months, payable in cash. At the Company’s option, dividends may instead be paid at an annual rate of 7.00 % of the Liquidation Preference per share in additional shares of Convertible Preferred Stock, or a PIK Dividend, valued at the Liquidation Preference per share; provided that the Company is prohibited from paying dividends in additional shares if the conversion feature at the time of issuance of such additional shares is equal to or greater than 10.00 % of the value of the Convertible Preferred Stock. After the 5.5 -year anniversary of the issue date, both the cash dividend rate and the PIK Dividend rate will each increase by 1.00 % per annum on each annual anniversary thereafter. Dividends are payable quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, each, a Dividend Payment Date, or, if such date is not a business day, on the next succeeding business day.
The following table reflects the dividends per share that the Company has declared on its Convertible Preferred Stock during the nine months ended September 30, 2026:
For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| July 30, 2026 | September 15, 2026 | September 30, 2026 | $ | |||||||||||||||||||||||
| Total Dividends Declared | $ | |||||||||||||||||||||||||
On October 28, 2026, the Board of Directors declared a cash dividend on the Convertible Preferred Stock for the period from September 30, 2026 to, but excluding, December 31, 2026 in the amount of $0.3125 per preferred share, which will be paid on or about December 31, 2026 to the holders of record as of the close of business on December 15, 2026.
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 5. Distributions (continued)
Taxes
The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Company’s distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually, as appropriate, on Form 1099-DIV.
Net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term losses. As of September 30, 2026, the Company had capital loss carryforwards available to offset future realized capital gains of approximately $3,327 . Because of the loss limitation rules of the Code, some of the tax basis losses may be limited in their use. Any unused balances resulting from such limitations may be carried forward into future years indefinitely.
As of September 30, 2026 and December 31, 2025, the Company’s gross unrealized appreciation on a tax basis was $1,152 and $1,138 , respectively. As of September 30, 2026 and December 31, 2025, the Company’s gross unrealized depreciation on a tax basis was $2,414 and $1,877 , respectively.
The aggregate cost of the Company’s investments for U.S. federal income tax purposes totaled $13,294 and $14,440 as of September 30, 2026 and December 31, 2025, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis was $(1,988 ) and $(1,431 ) as of September 30, 2026 and December 31, 2025, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from merger accounting, foreign currency forward contracts and foreign currency transactions.
As of September 30, 2026, the Company had a gross deferred tax liability of $1 and a net deferred tax liability of $0 resulting from unrealized appreciation on investments held by the Company’s wholly-owned taxable subsidiaries and a deferred tax asset of $62 resulting from a combination of unrealized depreciation on investments held by and net operating losses and other tax attributes of the Company’s wholly-owned taxable subsidiaries. As of September 30, 2026, certain wholly-owned taxable subsidiaries anticipated that they would be unable to fully utilize their generated net operating losses, therefore the deferred tax asset was offset by a valuation allowance of $61 .
Note 6. Investment Portfolio
The following table summarizes the composition of the Company’s investment portfolio at cost and fair value as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | $ | $ | % | $ | $ | % | ||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | % | % | ||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | % | % | ||||||||||||||||||||||||||||||||||||
| Subordinated Debt | % | % | ||||||||||||||||||||||||||||||||||||
| Asset Based Finance | % | % | ||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | % | % | ||||||||||||||||||||||||||||||||||||
| Equity/Other | % | % | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | % | $ | $ | % | ||||||||||||||||||||||||||||||||
________________
(1)Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts and PIK interest or dividends, as applicable, on investments.
In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned more than 25% of its voting securities or it had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities.
As of September 30, 2026, the Company held investments in thirty-seven portfolio companies of which it may be deemed to “control.” As of September 30, 2026, the Company held investments in ten portfolio companies of which it may be deemed to be an
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 6. Investment Portfolio (continued)
“affiliated person” but is not deemed to “control.” For additional information with respect to such portfolio companies, see footnotes (ac) and (ad) to the unaudited consolidated schedule of investments as of September 30, 2026 in this quarterly report on Form 10-Q.
As of December 31, 2025, the Company held investments in thirty-four portfolio companies of which it is deemed to “control.” As of December 31, 2025, the Company held investments in ten portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control.” For additional information with respect to such portfolio companies, see footnotes (ac) and (ad) to the consolidated schedule of investments as of December 31, 2025 in this quarterly report on Form 10-Q.
The Company’s investment portfolio may contain loans and other unfunded arrangements that are in the form of lines of credit, revolving credit facilities, delayed draw credit facilities or other investments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. As of September 30, 2026, the Company had unfunded debt investments with aggregate unfunded commitments of $1,041.1 , unfunded equity/other commitments of $70.3 and unfunded commitments of $434.0 to Credit Opportunities Partners JV, LLC, or COPJV. As of December 31, 2025, the Company had unfunded debt investments with aggregate unfunded commitments of $1,447.4 , unfunded equity/other commitments of $87.5 and unfunded commitments of $245.0 to COPJV. The Company maintains sufficient cash on hand and available borrowings to fund such unfunded commitments should the need arise. For additional details regarding the Company’s unfunded debt investments, see the Company’s unaudited consolidated schedule of investments as of September 30, 2026 and the Company’s audited consolidated schedule of investments as of December 31, 2025.
The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | ||||||||||||||||||||||||||
| (Unaudited) | December 31, 2025 | |||||||||||||||||||||||||
| Industry Classification | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
| Capital Goods | $ | % | $ | % | ||||||||||||||||||||||
| Commercial & Professional Services | % | % | ||||||||||||||||||||||||
| Consumer Discretionary Distribution & Retail | % | % | ||||||||||||||||||||||||
| Consumer Durables & Apparel | % | % | ||||||||||||||||||||||||
| Consumer Services | % | % | ||||||||||||||||||||||||
| Consumer Staples Distribution & Retail | % | % | ||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | % | % | ||||||||||||||||||||||||
| Energy | % | % | ||||||||||||||||||||||||
| Equity Real Estate Investment Trusts (REITs) | % | % | ||||||||||||||||||||||||
| Financial Services | % | % | ||||||||||||||||||||||||
| Food, Beverage & Tobacco | % | % | ||||||||||||||||||||||||
| Health Care Equipment & Services | % | % | ||||||||||||||||||||||||
| Household & Personal Products | % | % | ||||||||||||||||||||||||
| Insurance | % | % | ||||||||||||||||||||||||
| Materials | % | % | ||||||||||||||||||||||||
| Media & Entertainment | % | % | ||||||||||||||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | % | % | ||||||||||||||||||||||||
| Real Estate Management & Development | % | |||||||||||||||||||||||||
| Software & Services | % | % | ||||||||||||||||||||||||
| Technology Hardware & Equipment | % | % | ||||||||||||||||||||||||
| Telecommunication Services | % | % | ||||||||||||||||||||||||
| Transportation | % | % | ||||||||||||||||||||||||
| Total | $ | % | $ | % | ||||||||||||||||||||||
Credit Opportunities Partners JV, LLC
COPJV is a joint venture between the Company and South Carolina Retirement Systems Group Trust, or SCRS. Pursuant to the terms of the second amended and restated limited liability company agreement, as amended, or the COPJV Agreement, the Company
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 6. Investment Portfolio (continued)
and SCRS each have 50 189 of its equity interests in COPJV to SCRS. In connection therewith, SCRS increased its capital commitment by a net amount of $175 . Giving effect to the transaction, COPJV had total capital commitments of $2,975 , $2,450 of which was from the Company and the remaining $525 of which was from SCRS. Based on current funded capital, SCRS’ ownership percentage of COPJV is approximately 21 % and the Company’s ownership percentage is approximately 79 %. As of September 30, 2026, the Company and SCRS have funded $2,520.0 to COPJV, of which $2,016.0 was from the Company.
During the nine months ended September 30, 2026 and year ended December 31, 2025, the Company sold investments with a cost of $84.6 for proceeds of $84.7 to COPJV and recognized a net realized gain (loss) of $0.1 , and sold investments with a cost of $1,805.4 for proceeds of $1,829.2 to COPJV and recognized a net realized gain (loss) of $23.8 , respectively, in connection with the transactions. As of September 30, 2026, $92.6 sales to COPJV are included in the Company’s receivable for investments sold in the consolidated balance sheets. During the nine months ended September 30, 2026, the Company purchased investments totaling $76.0 from COPJV. During the nine months ended September 30, 2026, COPJV recognized a net realized gain (loss) of $(0.5 ) for these transactions. As administrative agent of COPJV, the Company performs certain day-to-day management responsibilities on behalf of COPJV and is entitled to a fee of 0.25 % of COPJV’s assets under administration, calculated and payable quarterly in arrears. For the nine months ended September 30, 2026 and 2025, the Company earned $9.5 and $8.1 of administrative services fees, respectively.
Below is selected balance sheet information for COPJV as of September 30, 2026 and December 31, 2025:
| As of | ||||||||||||||
September 30, 2026 (Unaudited) | December 31, 2025 | |||||||||||||
| Selected Balance Sheet Information | ||||||||||||||
| Total investments, at fair value | $ | $ | ||||||||||||
| Cash and other assets | ||||||||||||||
| Total assets | ||||||||||||||
| Debt | ||||||||||||||
| Other liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
| Member’s equity | $ | $ | ||||||||||||
Below is selected statement of operations information for COPJV for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Selected Statement of Operations Information | ||||||||||||||||||||||||||
| Investment income | ||||||||||||||||||||||||||
| Total investment income | $ | $ | $ | $ | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Custodian and accounting fees | ||||||||||||||||||||||||||
| Administrative services | ||||||||||||||||||||||||||
| Professional services | ||||||||||||||||||||||||||
| Other general and administrative expenses | ||||||||||||||||||||||||||
| Total expenses | ||||||||||||||||||||||||||
| Net investment income | ||||||||||||||||||||||||||
| Net realized and unrealized gain (loss) | ( | ( | ( | |||||||||||||||||||||||
| Net increase in net assets resulting from operations | $ | $ | $ | $ | ||||||||||||||||||||||
Note 7. Financial Instruments
The following is a summary of the fair value and location of the Company’s derivative instruments not designated as a qualifying hedge accounting relationship in the consolidated balance sheets held as of September 30, 2026 and December 31, 2025:
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 7. Financial Instruments (continued)
| Derivative Instrument | Statement Location | September 30, 2026 (Unaudited) | December 31, 2025 | |||||||||||||||||
| Foreign currency forward contracts | Unrealized appreciation on foreign currency forward contracts | $ | $ | |||||||||||||||||
| Foreign currency forward contracts | Unrealized depreciation on foreign currency forward contracts | ( | ( | |||||||||||||||||
| Total | $ | $ | ( | |||||||||||||||||
Net realized and unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recorded by the Company for the three and nine months ended September 30, 2026 and 2025 are in the following locations in the consolidated statements of operations:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| Derivative Instrument | Statement Location | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Foreign currency forward contracts | Net realized gain (loss) on foreign currency forward contracts | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||
| Foreign currency forward contracts | Net change in unrealized appreciation (depreciation) on foreign currency forward contracts | ( | ||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Offsetting of Derivative Instruments
The Company has derivative instruments that are subject to master netting agreements. These agreements include provisions to offset positions with the same counterparty in the event of default by one of the parties. The Company’s unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated balance sheets. The following tables present the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of September 30, 2026 and December 31, 2025:
As of September 30, 2026 (Unaudited) | ||||||||||||||||||||||||||||||||
| Counterparty | Derivative Assets Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount of Derivative Assets(2) | |||||||||||||||||||||||||||
| JP Morgan Chase Bank | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
| Counterparty | Derivative Liabilities Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Pledged(1) | Cash Collateral Pledged(1) | Net Amount of Derivative Liabilities(3) | |||||||||||||||||||||||||||
| JP Morgan Chase Bank | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||
As of December 31, 2025 | ||||||||||||||||||||||||||||||||
| Counterparty | Derivative Assets Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount of Derivative Assets(2) | |||||||||||||||||||||||||||
| JP Morgan Chase Bank | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Counterparty | Derivative Liabilities Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Pledged(1) | Cash Collateral Pledged(1) | Net Amount of Derivative Liabilities(3) | |||||||||||||||||||||||||||
| JP Morgan Chase Bank | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||
| Total | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 7. Financial Instruments (continued)
___________
(1)In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.
(2)Net amount of derivative assets represents the net amount due from the counterparty to the Company.
(3)Net amount of derivative liabilities represents the net amount due from the Company to the counterparty.
Foreign Currency Forward Contracts and Cross Currency Swaps
The Company may enter into foreign currency forward contracts and cross currency swaps from time to time to facilitate settlement of purchases and sales of investments denominated in foreign currencies and to economically hedge the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. A foreign currency forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. These contracts are marked-to-market by recognizing the difference between the contract forward exchange rate and the forward market exchange rate on the last day of the period presented as unrealized appreciation or depreciation. Realized gains or losses are recognized when forward contracts are settled. Risks arise as a result of the potential inability of the counterparties to meet the terms of their contracts. The Company attempts to limit counterparty risk by only dealing with well-known counterparties.
Cross currency swaps are interest rate swaps in which interest cash flows are exchanged between two parties based on the notional amounts of two different currencies. These swaps are marked-to-market by recognizing the difference between the present value of cash flows of each leg of the swaps as unrealized appreciation or depreciation. Realized gain or loss is recognized when periodic payments are received or paid and the swaps are terminated. The entire notional value of a cross currency swap is subject to the risk that the counterparty to the swap will default on its contractual delivery obligations. The Company attempts to limit counterparty risk by only dealing with well-known counterparties. The Company utilizes cross currency swaps from time to time in order to hedge a portion of its investments in foreign currency.
The average notional balance for foreign currency forward contracts during the nine months ended September 30, 2026 and 2025 was $227.2 and $188.4 , respectively. See consolidated schedules of investments for the Company’s open foreign currency forward contracts.
Interest Rate Swaps
In connection with the Company’s issuance on June 6, 2024 of $600 aggregate principal amount of its 6.875 % Notes due 2029, or the 6.875 % Notes due 2029, the Company entered into interest rate swap agreements for a total notional amount of $600 that mature on August 15, 2029 to reduce the exposure to changes in fair value associated with the 6.875 % Notes due 2029. Under an interest rate swap agreement, entered into on June 13, 2024, the Company receives a fixed interest rate of 6.875 % and pays a floating interest rate of one-month SOFR plus 2.754 % on a notional amount of $200 ; and under an interest rate swap agreement, entered into on June 27, 2024, the Company receives a fixed interest rate of 6.875 % and pays a floating interest rate of one-month SOFR plus 2.788 % on a notional amount of $400 . As of September 30, 2026, the counterparty to the interest rate swap agreements was ING Capital Markets LLC. The Company designated these interest rate swaps and the 6.875 % Notes due 2029 as a qualifying fair value hedge accounting relationship. See Note 9 for more information on the 6.875 % Notes due 2029.
In connection with the Company’s issuance on each of November 20, 2024 and December 27, 2024 of $600 aggregate principal amount and $100 aggregate principal amount, respectively, of its 6.125 % Notes due 2030, or the 6.125 % Notes due 2030, the Company entered into interest rate swap agreements for a total notional amount of $700 that mature on January 15, 2030 to reduce the exposure to changes in fair value associated with the 6.125 % Notes due 2030. Under an interest rate swap agreement, entered into on November 13, 2024, the Company receives a fixed interest rate of 6.125 % and pays a floating interest rate of daily compounded SOFR plus 2.1374 % on a notional amount of $600 ; and under an interest rate swap agreement, entered into on December 20, 2024, the Company receives a fixed interest rate of 6.125 % and pays a floating interest rate of daily compounded SOFR plus 2.0614 % on a notional amount of $100 . As of September 30, 2026, the counterparty to the interest rate swap agreements was ING Capital Markets LLC. The Company designated these interest rate swaps and the 6.125 % Notes due 2030 as a qualifying fair value hedge accounting relationship. See Note 9 for more information on the 6.125 % Notes due 2030.
In connection with the Company’s issuance on September 25, 2025 of $400 aggregate principal amount of its 6.125 % Notes due 2031, or the 6.125 % Notes due 2031, the Company entered into an interest rate swap agreement for a total notional amount of $400 that matures on January 15, 2031 to reduce the exposure to changes in fair value associated with the 6.125 % Notes due 2031. Under the interest rate swap agreement, entered into on September 18, 2025, the Company receives a fixed interest rate of 6.125 % and pays a floating interest rate of one-month SOFR plus 2.7475 % on a notional amount of $400 . As of September 30, 2026, the counterparty to
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 7. Financial Instruments (continued)
the interest rate swap agreement was Royal Bank of Canada. The Company designated this interest rate swap and the 6.125 % Notes due 2031 as a qualifying fair value hedge accounting relationship. See Note 9 for more information on the 6.125 % Notes due 2031.
In connection with the Company’s issuance on June 8, 2026 of $900 aggregate principal amount of its 7.500 % Notes due 2031, or the 7.500 % Notes due 2031, the Company entered into an interest rate swap agreement for a total notional amount of $900 that matures on August 1, 2031 to reduce the exposure to changes in fair value associated with the 7.500 % Notes due 2031. Under the interest rate swap agreement, entered into on May 28, 2026, the Company receives a fixed interest rate of 7.500 % and pays a floating interest rate of one-month SOFR plus 3.4878 % on a notional amount of $900 . As of September 30, 2026, the counterparty to the interest rate swap agreement was ING Capital Markets LLC. The Company designated this interest rate swap and the 7.500 % Notes due 2031 as a qualifying fair value hedge accounting relationship. See Note 9 for more information on the 7.500 % Notes due 2031.
As a result of the Company’s designation of the interest rate swaps as hedging instruments in a qualifying fair value hedge accounting relationship, the Company is required to fair value the hedging instruments and the related hedged items, with the changes in the fair value of each being recorded in interest expense. The following is a summary of the fair value and location of the Company’s derivative instruments in the consolidated balance sheet held as of September 30, 2026:
| Derivative Instrument | Notional Amount | Maturity Date | Gross Amount of Recognized Assets | Gross Amount of Recognized Liabilities | Statement Location | |||||||||||||||||||||||||||
Interest rate swap(1) | $ | 8/15/2029 | $ | $ | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||
Interest rate swap(1) | $ | 8/15/2029 | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||||
Interest rate swap(2) | $ | 1/15/2030 | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||||
Interest rate swap(2) | $ | 1/15/2030 | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||||
Interest rate swap(3) | $ | 1/15/2031 | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||||
Interest rate swap(4) | $ | 8/1/2031 | ( | Other accrued expenses and liabilities | ||||||||||||||||||||||||||||
| Total | $ | $ | ( | |||||||||||||||||||||||||||||
___________
(1)The asset related to the fair value of the interest rate swaps was offset by a $12 decrease to the carrying value of the 6.875 % Notes due 2029.
(2)The asset related to the fair value of the interest rate swaps was offset by a $10 decrease to the carrying value of the 6.125 % Notes due 2030.
(3)The asset related to the fair value of the interest rate swap was offset by a $19 decrease to the carrying value of the 6.125 % Notes due 2031.
(4)The asset related to the fair value of the interest rate swap was offset by a $19 decrease to the carrying value of the 7.500 % Notes due 2031.
Note 8. Fair Value of Financial Instruments
Under existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. This accounting guidance emphasizes valuation techniques that maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:
Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets.
Level 3: Inputs that are unobservable for an asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
The following tables present fair value measurements of the Company’s assets and liabilities that are recorded at fair value and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value as of September 30, 2026 and December 31, 2025:
September 30, 2026 (Unaudited) | ||||||||||||||||||||||||||
| Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets, at fair value: | ||||||||||||||||||||||||||
| Investments not measured at net asset value | $ | $ | $ | $ | ||||||||||||||||||||||
Investments measured at net asset value(1) | ||||||||||||||||||||||||||
| Total investments | ||||||||||||||||||||||||||
Money market funds(2) | ||||||||||||||||||||||||||
| Foreign currency forward contracts | ||||||||||||||||||||||||||
| Interest rate swaps | ||||||||||||||||||||||||||
| Total assets, at fair value: | $ | $ | $ | $ | ||||||||||||||||||||||
| Liabilities, at fair value: | ||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest rate swaps | ||||||||||||||||||||||||||
| Total liabilities, at fair value: | $ | $ | $ | $ | ||||||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||||||||
| Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets, at fair value: | ||||||||||||||||||||||||||
| Investments not measured at net asset value | $ | $ | $ | $ | ||||||||||||||||||||||
Investments measured at net asset value(1) | ||||||||||||||||||||||||||
| Total investments | ||||||||||||||||||||||||||
| Foreign currency forward contracts | ||||||||||||||||||||||||||
| Interest rate swaps | ||||||||||||||||||||||||||
| Total assets, at fair value: | $ | $ | $ | $ | ||||||||||||||||||||||
| Liabilities, at fair value: | ||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest rate swaps | ||||||||||||||||||||||||||
| Total liabilities, at fair value: | $ | $ | $ | $ | ||||||||||||||||||||||
________________
(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.
(2)The fair value of money market funds is included in “cash and cash equivalents” in the consolidated balance sheets.
The Board of Directors is responsible for overseeing the valuation of the Company’s portfolio investments at fair value as determined in good faith pursuant to the Adviser’s valuation policy. The Board of Directors has designated the Adviser with day-to-day responsibility for implementing the portfolio valuation process set forth in the Adviser’s valuation policy.
The Company’s investments consist primarily of debt investments that were acquired directly from the issuer. Debt investments, for which broker quotes are not available, are valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, the borrower’s ability to adequately service its debt, prevailing interest rates for like investments, expected cash flows, call features, anticipated repayments and other relevant terms of the investments. Except as described below, all of the Company’s equity/other investments are also valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, contractual rights ascribed to such investments, as well as various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income,
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
revenues or, in limited instances, book value or liquidation value. An investment that is newly issued and purchased near the date of the financial statements is valued at cost if the Adviser determines that the cost of such investment is the best indication of its fair value. Such investments described above are typically classified as Level 3 within the fair value hierarchy. Investments that are traded on an active public market are valued at their closing price as of the date of the financial statements and are classified as Level 1 within the fair value hierarchy. Except as described above, the Adviser typically values the Company’s other investments by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which are provided by independent third-party pricing services and screened for validity by such services and are typically classified as Level 2 within the fair value hierarchy.
The Adviser periodically benchmarks the bid and ask prices it receives from the third-party pricing services and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Adviser believes that these prices are reliable indicators of fair value. The Adviser reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Adviser’s valuation policy.
Restricted Securities
The Company may invest in securities that are subject to legal or contractual restrictions on resale and may only be resold to the public pursuant to an effective registration statement under the Securities Act, or to qualified institutional buyers in transactions exempt from such registration. The Company does not consider securities to be restricted if the securities may be resold in transactions exempt from registration under the Securities Act, including pursuant to Rule 144A, and there are no restrictions that would otherwise prevent the Company from selling the securities to qualified institutional buyers as of the end of the reporting period. The Company does not incur registration costs upon the resale of securities to qualified institutional buyers in transactions exempt from registration. In certain circumstances, the issuer of restricted securities may bear the costs associated with registering such securities for resale. Such investments described above are classified as Level 3 within the fair value hierarchy.
The following table presents the restricted securities held by the Company as of September 30, 2026:
Portfolio Company(1) | Shares | Cost | Fair Value | Acquisition Date | % of Net Assets | |||||||||||||||||||||||||||
| Asset Based Finance | ||||||||||||||||||||||||||||||||
| 801 5th Ave, Seattle, ABF Equity | $ | $ | 12/19/2019 | |||||||||||||||||||||||||||||
| Abacus JV, ABF Equity | 11/8/2021 | |||||||||||||||||||||||||||||||
| Accelerator Investments Aggregator LP, ABF Equity | 1/22/2021 | |||||||||||||||||||||||||||||||
| Aggregator (GreenSky Holdings I) | 6/24/2024 | |||||||||||||||||||||||||||||||
| Aggregator (Rockloans Marketplace LLC) | 3/30/2023 | |||||||||||||||||||||||||||||||
| Aggregator 40 Act (AOP SFR 1 LLC (FKA Avenue One PropCo)) | 3/15/2024 | |||||||||||||||||||||||||||||||
| Aggregator 40 Act (My Community Homes PropCo 2) | 3/15/2024 | |||||||||||||||||||||||||||||||
| Altavair AirFinance, ABF Equity | 11/11/2022 | |||||||||||||||||||||||||||||||
| Australis Maritime, Common Stock | 3/23/2023 | |||||||||||||||||||||||||||||||
| Auxilior Capital Partners Inc, Preferred Equity | 4/30/2024 | |||||||||||||||||||||||||||||||
| Avida Holding AB, Common Stock | 6/29/2020 | |||||||||||||||||||||||||||||||
| Byrider Finance LLC, ABF Equity | 11/30/2022 | |||||||||||||||||||||||||||||||
| Danube - Alps Aggregator (PayPal Europe Sarl et Cie SCA) | 10/11/2024 | |||||||||||||||||||||||||||||||
| Fourways Aggregator LP (Norway_France) | 8/28/2024 | |||||||||||||||||||||||||||||||
| Global Jet Capital LLC, Preferred Stock | 10/1/2021 | |||||||||||||||||||||||||||||||
| Hercules Aggregator LP (Flexsys Holdings Inc) | 4/20/2026 | |||||||||||||||||||||||||||||||
| Kilter Finance 2.0, Common Stock | 1/27/2026 | |||||||||||||||||||||||||||||||
| Kilter Finance, ABF Equity | 4/16/2020 | |||||||||||||||||||||||||||||||
| Kilter Finance, Common Stock | 8/8/2025 | |||||||||||||||||||||||||||||||
| Kilter Finance, Preferred Stock | 1/27/2022 | |||||||||||||||||||||||||||||||
| KKR Altitude II Offshore Aggregator LP, Partnership Interest | 10/4/2024 | |||||||||||||||||||||||||||||||
| KKR Altitude III Offshore Aggregator (Altitude III) | 6/18/2026 | |||||||||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest | 6/30/2018 | |||||||||||||||||||||||||||||||
| KKR Chord IP Aggregator LP, Partnership Interest | 10/26/2022 | |||||||||||||||||||||||||||||||
| KKR Lombardy Aggregator LP (SKP German Bank) | 12/17/2025 | |||||||||||||||||||||||||||||||
| KKR Maverick Holdco Blocker (Bond Aviation Holdings LLC) | 10/20/2025 | |||||||||||||||||||||||||||||||
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
Portfolio Company(1) | Shares | Cost | Fair Value | Acquisition Date | % of Net Assets | |||||||||||||||||||||||||||
| KKR Morrow ABF Aggregator LLC (Harley-Davidson Financial Services Inc) | $ | $ | 10/30/2025 | |||||||||||||||||||||||||||||
| KKR Morrow OpCo Aggregator LLC (Harley-Davidson Financial Services Inc) | 10/30/2025 | |||||||||||||||||||||||||||||||
| KKR Morrow Residual Purchase 1 LLC (Harley-Davidson Financial Services Inc) | 8/8/2025 | |||||||||||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest | 6/16/2021 | |||||||||||||||||||||||||||||||
| KSC I Aircraft LP, ABF Equity | 10/21/2025 | |||||||||||||||||||||||||||||||
| Prime ST LLC, ABF Equity | 3/12/2020 | |||||||||||||||||||||||||||||||
| Ravine - PIK Equity (Vehicle Secured Funding Trust) | 6/26/2024 | |||||||||||||||||||||||||||||||
| Roemanu LLC, ABF Equity | 1/2/2018 | |||||||||||||||||||||||||||||||
| Sea Financing Aggregator II LP (Australis Maritime II) | 5/30/2023 | |||||||||||||||||||||||||||||||
| SPV (Residential Opportunities I LLC) | 4/17/2023 | |||||||||||||||||||||||||||||||
| SPV (SunPower Financial) | 6/29/2023 | |||||||||||||||||||||||||||||||
| SPV ALPS 2.0 Aggregator LP EUR (PayPal Danube 2) | 11/14/2025 | |||||||||||||||||||||||||||||||
| SPV ALPS 2.0 Aggregator LP GBP (PayPal Danube 2) | 11/14/2025 | |||||||||||||||||||||||||||||||
| SPV KKR Galaxy BDC Leveraged (Galaxy Container) | 11/21/2025 | |||||||||||||||||||||||||||||||
| SPV Magenta Holdings (GreenSky (Platform)) | 3/15/2024 | |||||||||||||||||||||||||||||||
| SPV Olympus Holdco Limited (TDC LLP) | 7/29/2025 | |||||||||||||||||||||||||||||||
| SPV Slate US Blocker LLC (Slate Venture Holdings LP) | 8/29/2024 | |||||||||||||||||||||||||||||||
| SPV Solaris BDC Leveraged (Newday Group Jersey Ltd) | 2/26/2026 | |||||||||||||||||||||||||||||||
| Star Mountain Diversified Credit Income Fund III, LP, ABF Equity | 8/15/2019 | |||||||||||||||||||||||||||||||
| Tarifa Aggregator LP (Drive Revel) | 8/15/2023 | |||||||||||||||||||||||||||||||
| TDC LLP, Preferred Equity | 5/12/2025 | |||||||||||||||||||||||||||||||
| Zentiva, Common Stock | 4/2/2026 | |||||||||||||||||||||||||||||||
| Zentiva, Preferred Equity | 4/2/2026 | |||||||||||||||||||||||||||||||
| Equity/Other | ||||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Common Stock | 1/14/2026 | |||||||||||||||||||||||||||||||
| 48Forty Solutions LLC, Preferred Stock | 1/14/2026 | |||||||||||||||||||||||||||||||
| Accuride Corp, Common Stock | 3/7/2025 | |||||||||||||||||||||||||||||||
| Accuride Corp, Preferred Stock | 3/11/2025 | |||||||||||||||||||||||||||||||
| Affordable Care Inc, Class A Common Stock | 6/29/2026 | |||||||||||||||||||||||||||||||
| Affordable Care Inc, Class B Common Stock | 6/29/2026 | |||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Common Stock | 2/28/2025 | |||||||||||||||||||||||||||||||
| Alacrity Solutions Group LLC, Preferred Equity | 2/28/2025 | |||||||||||||||||||||||||||||||
| American Vision Partners, Private Equity | 9/30/2021 | |||||||||||||||||||||||||||||||
| athenahealth Inc, Preferred Stock | 2/15/2022 | |||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-1 Common Stock | 12/9/2022 | |||||||||||||||||||||||||||||||
| ATX Networks Corp, Class B-2 Common Stock | 12/9/2022 | |||||||||||||||||||||||||||||||
| ATX Networks Corp, Common Stock | 9/1/2021 | |||||||||||||||||||||||||||||||
| AVE Holdings I Corp (fka Amerivet Partners Management Inc), Preferred Stock | 2/25/2022 | |||||||||||||||||||||||||||||||
| Belk Inc, Common Stock | 7/22/2024 | |||||||||||||||||||||||||||||||
| Borden (New Dairy Opco), Common Stock | 7/20/2020 | |||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrant | 5/30/2024 | |||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | 10/25/2023 | |||||||||||||||||||||||||||||||
| Bowery Farming Inc, Warrants | 9/10/2021 | |||||||||||||||||||||||||||||||
| CDS US Intermediate Holdings Inc, Common Stock | 11/14/2025 | |||||||||||||||||||||||||||||||
| Cengage Learning, Inc, Common Stock | 8/19/2015 | |||||||||||||||||||||||||||||||
| Constellis Holdings LLC, Preferred Equity | 9/16/2024 | |||||||||||||||||||||||||||||||
| Cubic Corp, Common Stock | 7/25/2025 | |||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Equity | 7/25/2025 | |||||||||||||||||||||||||||||||
| Cubic Corp, Preferred Stock | 7/25/2025 | |||||||||||||||||||||||||||||||
| Cubic Corp, Warrant | 7/25/2025 | |||||||||||||||||||||||||||||||
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
Portfolio Company(1) | Shares | Cost | Fair Value | Acquisition Date | % of Net Assets | |||||||||||||||||||||||||||
| Dental Care Alliance Inc, Common Stock | $ | $ | 6/1/2026 | |||||||||||||||||||||||||||||
| Galaxy Universal LLC, Common Stock | 11/11/2021 | |||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | 6/9/2023 | |||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Preferred Stock | 12/16/2025 | |||||||||||||||||||||||||||||||
| Galaxy Universal LLC, Trade Claim | 11/11/2021 | |||||||||||||||||||||||||||||||
| Gracent LLC, Class A Common Stock | 7/10/2023 | |||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Equity | 7/12/2023 | |||||||||||||||||||||||||||||||
| Gracent LLC, Preferred Stock B | 7/10/2023 | |||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Common Stock | 6/30/2025 | |||||||||||||||||||||||||||||||
| HM Dunn Co Inc, Preferred Equity | 6/30/2025 | |||||||||||||||||||||||||||||||
| JW Aluminum Co, Preferred Stock | 6/27/2025 | |||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Common Stock | 3/18/2024 | |||||||||||||||||||||||||||||||
| Kellermeyer Bergensons Services LLC, Preferred Stock | 3/18/2024 | |||||||||||||||||||||||||||||||
| Kestra Financial Inc, Preferred Equity | 2/3/2025 | |||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class A Common Stock | 8/6/2025 | |||||||||||||||||||||||||||||||
| Lido Advisors LLC, Class Z Preferred Stock | 8/6/2025 | |||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Common Equity | 1/30/2026 | |||||||||||||||||||||||||||||||
| Lionbridge Technologies Inc, Preferred Stock | 1/30/2026 | |||||||||||||||||||||||||||||||
| Lipari Foods LLC, Common Stock | 12/30/2022 | |||||||||||||||||||||||||||||||
| Magna Legal Services LLC, Common Stock | 11/21/2022 | |||||||||||||||||||||||||||||||
| Medallia Inc, Class A Equity | 7/30/2026 | |||||||||||||||||||||||||||||||
| Medallia Inc, Preferred Equity | 7/30/2026 | |||||||||||||||||||||||||||||||
| Med-Metrix, Class B Common Units | 7/29/2026 | |||||||||||||||||||||||||||||||
| Med-Metrix, Common Stock | 8/6/2025 | |||||||||||||||||||||||||||||||
| Misys Ltd, Preferred Stock | 6/16/2021 | |||||||||||||||||||||||||||||||
| NCI Inc, Class A-1 Common Stock | 11/11/2022 | |||||||||||||||||||||||||||||||
| NCI Inc, Class B-1 Common Stock | 11/11/2022 | |||||||||||||||||||||||||||||||
| NCI Inc, Class C Common Stock | 11/11/2022 | |||||||||||||||||||||||||||||||
| NCI Inc, Class I-1 Common Stock | 11/11/2022 | |||||||||||||||||||||||||||||||
| New Era Technology LLC, Common Stock | 8/21/2025 | |||||||||||||||||||||||||||||||
| New Era Technology LLC, Preferred Stock | 8/21/2025 | |||||||||||||||||||||||||||||||
| Nidda Healthcare Holding AG, Common Stock | 3/26/2026 | |||||||||||||||||||||||||||||||
| One Call Care Management Inc, Common Stock | 10/25/2019 | |||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A | 10/25/2019 | |||||||||||||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B | 10/25/2019 | |||||||||||||||||||||||||||||||
| Polyconcept North America Inc, Class A - 1 Units | 8/16/2016 | |||||||||||||||||||||||||||||||
| Production Resource Group LLC, Common Stock | 10/10/2025 | |||||||||||||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units | 5/7/2018 | |||||||||||||||||||||||||||||||
| Quoizel, LLC, Common Stock | 8/30/2023 | |||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | 7/28/2023 | |||||||||||||||||||||||||||||||
| Quorum Health Corp, Private Equity | 5/7/2025 | |||||||||||||||||||||||||||||||
| Quorum Health Corp, Trade Claim | 7/7/2020 | |||||||||||||||||||||||||||||||
| Quorum Health Corp, Trust Initial Funding Units | 9/11/2020 | |||||||||||||||||||||||||||||||
| Sorenson Communications LLC, Common Stock | 4/1/2022 | |||||||||||||||||||||||||||||||
| Stuart Weitzman Inc, Common Stock | 5/4/2015 | |||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | 9/8/2022 | |||||||||||||||||||||||||||||||
| Ultra Electronics Holdings PLC, Private Equity | 8/2/2022 | |||||||||||||||||||||||||||||||
| Wittur Holding GmbH, Common Stock | 3/1/2024 | |||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||
________________
(1)See the unaudited consolidated schedule of investments as of September 30, 2026 included herein for additional details on securities listed.
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
The following is a reconciliation for the nine months ended September 30, 2026 and 2025 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | Senior Secured Loans—Second Lien | Other Senior Secured Debt | Subordinated Debt | Asset Based Finance | Equity/Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Fair value at beginning of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Accretion of discount (amortization of premium) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized gain (loss) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Purchases | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in-kind interest | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and repayments | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Transfers out of Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value at end of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Loans—First Lien | Senior Secured Loans—Second Lien | Other Senior Secured Debt | Subordinated Debt | Asset Based Finance | Equity/Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Fair value at beginning of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Accretion of discount (amortization of premium) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized gain (loss) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Purchases | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in-kind interest | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales and repayments | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Transfers out of Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value at end of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||
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Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 8. Fair Value of Financial Instruments (continued)
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of September 30, 2026 and December 31, 2025 were as follows:
| Type of Investment | Fair Value at September 30, 2026 (Unaudited) | Valuation Technique(1) | Unobservable Input | Range (Weighted Average) | Impact to Valuation from an Increase in Input(2) | |||||||||||||||||||||||||||
| Senior Debt | $ | Discounted Cash Flow | Discount Rate | Decrease | ||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
| Cost | ||||||||||||||||||||||||||||||||
| Subordinated Debt | Discounted Cash Flow | Discount Rate | Decrease | |||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
| Asset Based Finance | Discounted Cash Flow | Discount Rate | Decrease | |||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
Other(3) | ||||||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
| Equity/Other | Market Approach | EBITDA Multiple | Increase | |||||||||||||||||||||||||||||
| Discounted Cash Flow | Discount Rate | Decrease | ||||||||||||||||||||||||||||||
Other(3) | ||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||
| Type of Investment | Fair Value at December 31, 2025 | Valuation Technique(1) | Unobservable Input | Range | Impact to Valuation from an Increase in Input(2) | |||||||||||||||||||||||||||
| Senior Debt | $ | Discounted Cash Flow | Discount Rate | Decrease | ||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
| Cost | ||||||||||||||||||||||||||||||||
| Subordinated Debt | Discounted Cash Flow | Discount Rate | Decrease | |||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
| Asset Based Finance | Discounted Cash Flow | Discount Rate | Decrease | |||||||||||||||||||||||||||||
| Market Approach | EBITDA Multiple | Increase | ||||||||||||||||||||||||||||||
| Illiquidity Discount | Decrease | |||||||||||||||||||||||||||||||
Other(3) | ||||||||||||||||||||||||||||||||
| Cost | ||||||||||||||||||||||||||||||||
| Indicative Dealer Quotes | Increase | |||||||||||||||||||||||||||||||
| Equity/Other | Market Approach | EBITDA Multiple | Increase | |||||||||||||||||||||||||||||
| Illiquidity Discount | Decrease | |||||||||||||||||||||||||||||||
| Discounted Cash Flow | Discount Rate | Decrease | ||||||||||||||||||||||||||||||
Other(3) | ||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||
(1)Investments using a market quotes valuation technique were primarily valued by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which were provided by independent third-party pricing services and screened for validity by such services. Investments valued using an EBITDA multiple or a revenue multiple pursuant to the market comparables valuation technique may be conducted using an enterprise valuation waterfall analysis.
(2)Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.
(3)Fair value based on expected outcome of proposed corporate transactions and/or other factors.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 9. Financing Arrangements
Prior to June 14, 2019, in accordance with the 1940 Act, the Company was allowed to borrow amounts such that its asset coverage, calculated pursuant to the 1940 Act, was at least 200% after such borrowing. Effective June 15, 2019, the Company’s asset coverage requirement applicable to senior securities was reduced from 200 % to 150 %. For purposes of the 1940 Act, “asset coverage” means the ratio of (1) the total assets of a BDC, less all liabilities and indebtedness not represented by senior securities, to (2) the aggregate amount of senior securities representing indebtedness (plus, in the case of senior securities represented by preferred stock, the aggregate involuntary liquidation preference of such BDC’s preferred stock). As of September 30, 2026, the aggregate amount outstanding of the senior securities issued by the Company was $6,487 . As of September 30, 2026, our asset coverage on our “senior securities representing indebtedness” was 179 % and our asset coverage on our “senior securities that are stock” was 177 %.
The following tables present summary information with respect to the Company’s outstanding financing arrangements as of September 30, 2026 and December 31, 2025. For additional information regarding these financing arrangements, see the notes to the Company’s audited consolidated financial statements contained in its annual report on Form 10-K for the year ended December 31, 2025. See Note 9 to the financial statements included in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 for a description of amendments or other changes to the financing arrangements during the three months ended March 31, 2026 and June 30, 2026, respectively. Any significant changes to the Company’s financing arrangements during the three months ended September 30, 2026 are discussed below.
As of September 30, 2026 (Unaudited) | ||||||||||||||||||||||||||||||||
| Arrangement | Type of Arrangement | Rate | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
Callowhill Credit Facility(2) | Revolving Credit Facility | SOFR+ | $ | $ | June 2, 2030 | |||||||||||||||||||||||||||
Senior Secured Revolving Credit Facility(2) | Revolving Credit Facility | SOFR+ | July 16, 2030 | |||||||||||||||||||||||||||||
| Unsecured Notes | January 15, 2027 | |||||||||||||||||||||||||||||||
| Unsecured Notes | July 15, 2027 | |||||||||||||||||||||||||||||||
| Unsecured Notes | October 12, 2028 | |||||||||||||||||||||||||||||||
| Unsecured Notes | January 15, 2029 | |||||||||||||||||||||||||||||||
| Unsecured Notes | August 15, 2029 | |||||||||||||||||||||||||||||||
| Unsecured Notes | January 15, 2030 | |||||||||||||||||||||||||||||||
| Unsecured Notes | January 15, 2031 | |||||||||||||||||||||||||||||||
| Unsecured Notes | August 1, 2031 | |||||||||||||||||||||||||||||||
CLO-2 Notes(2)(8) | Collateralized Loan Obligation | SOFR+ | April 15, 2037 | |||||||||||||||||||||||||||||
CLO-3 Notes(2)(9) | Collateralized Loan Obligation | SOFR+ | January 15, 2038 | |||||||||||||||||||||||||||||
Convertible Preferred Stock(10) | Preferred Stock | — | ||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||
___________
(1)The benchmark rate is subject to a 0
(2)The carrying amount outstanding under the facility approximates its fair value.
(3)The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.10 % and 0.0326 % is applicable to borrowings in U.S. dollars and pounds sterling, respectively.
(4)Amount includes borrowing in Euros, pounds sterling and Australian dollars. Euro balance outstanding of €351 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.13 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £64 has been converted to U.S dollars at an exchange rate of £1.00 to $1.33 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD6 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.70 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars.
(5)The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of September 30, 2026, $50 of such letters of credit have been issued.
(6)As of September 30, 2026, the fair value of the 2.625 % Notes due 2027, the 3.250 % Notes due 2027, the 3.125 % Notes due 2028, the 7.875 % Notes due 2029, the 6.875 % Notes due 2029, the 6.125 % Notes due 2030, the 6.125 % Notes due 2031 and the 7.500 % Notes due 2031 was approximately $396 , $486 , $698 , $404 , $588 , $690 , $381 and $881 , respectively. These valuations are considered Level 2 valuations within the fair value hierarchy.
(7)As of September 30, 2026, the carrying values of the 6.875 % Notes due 2029, the 6.125 % Notes due 2030, the 6.125 % Notes due 2031 and the 7.500 % Notes due 2031 include a $(12 ), $(10 ), $(19 ) and $(19 ) increase (decrease), respectively, as a result of an effective hedge accounting relationship. See Note 7 for additional information.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 9. Financing Arrangements (continued)
(8)As of September 30, 2026, there were $160.0 of Class A-1 Notes outstanding at SOFR+1.48 %, $100.0 of Class A-1L Notes outstanding at SOFR+1.48 %, $30.0 of Class A-1W Notes outstanding at SOFR+1.48 %, $20.0 of Class A-2L Notes outstanding at SOFR+1.60 %, $30.0 of Class B Notes outstanding at SOFR+1.75 % and $40.0 of Class C Notes outstanding at SOFR+2.15 %.
(9)As of September 30, 2026, there were $125.5 of Class A-1 Notes outstanding at SOFR+1.47 %, $150.0 of Class A-1 Senior Floating Rate Loans outstanding at SOFR+1.47 %, $19.0 of Class A-2 Notes outstanding at SOFR+1.65 %, $35.6 of Class B Notes outstanding at SOFR+1.80 % and $33.2 of Class C Notes outstanding at SOFR+2.10 %.
(10)The Convertible Preferred Stock pays dividends of 5.00 % cash or 7.00 % PIK, at the Company’s option, in either case increasing annually by 1.00 % per annum beginning on the 5.5 -year anniversary of the issue date. See Note 4 for additional information.
As of December 31, 2025 | ||||||||||||||||||||||||||||||||
| Arrangement | Type of Arrangement | Rate | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
Callowhill Credit Facility(2) | Revolving Credit Facility | SOFR+ | $ | $ | June 2, 2030 | |||||||||||||||||||||||||||
CCT Tokyo Funding Credit Facility(2) | Revolving Credit Facility | SOFR+ | June 2, 2026 | |||||||||||||||||||||||||||||
Meadowbrook Run Credit Facility(2) | Revolving Credit Facility | SOFR+ | November 22, 2028 | |||||||||||||||||||||||||||||
Senior Secured Revolving Credit Facility(2) | Revolving Credit Facility | SOFR+ | July 16, 2030 | |||||||||||||||||||||||||||||
| Unsecured Notes | — | January 15, 2026 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | January 15, 2027 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | July 15, 2027 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | October 12, 2028 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | January 15, 2029 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | August 15, 2029 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | January 15, 2030 | ||||||||||||||||||||||||||||||
| Unsecured Notes | — | January 15, 2031 | ||||||||||||||||||||||||||||||
CLO-2 Notes(2)(9) | Collateralized Loan Obligation | SOFR+ | — | April 15, 2037 | ||||||||||||||||||||||||||||
CLO-3 Notes(2)(10) | Collateralized Loan Obligation | SOFR+ | — | January 15, 2038 | ||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||
___________
(1)The benchmark rate is subject to a 0
(2)The carrying amount outstanding under the facility approximates its fair value.
(3)As of December 31, 2025, there was $30 term loan outstanding at SOFR+1.90 % and $15 revolving commitment outstanding at SOFR+2.05 %.
(4)The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.10 % and 0.0326 % is applicable to borrowings in U.S. dollars and pounds sterling, respectively.
(5)Amount includes borrowing in Euros, pounds sterling and Australian dollars. Euro balance outstanding of €361 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.17 as of December 31, 2025 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £180 has been converted to U.S dollars at an exchange rate of £1.00 to $1.34 as of December 31, 2025 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD3 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.67 as of December 31, 2025 to reflect total amount outstanding in U.S. dollars.
(6)The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of December 31, 2025, $50 of such letters of credit have been issued.
(7)As of December 31, 2025, the fair value of the 3.400 % Notes due 2026, the 2.625 % Notes due 2027, the 3.250 % Notes due 2027, the 3.125 % Notes due 2028, the 7.875 % Notes due 2029, the 6.875 % Notes due 2029, the 6.125 % Notes due 2030 and the 6.125 % Notes due 2031 was approximately $1,000 , $389 , $483 , $692 , $414 , $624 , $732 and $403 , respectively. These valuations are considered Level 2 valuations within the fair value hierarchy.
(8)As of December 31, 2025, the carrying values of the 6.875 % Notes due 2029, the 6.125 % Notes due 2030 and the 6.125 % Notes due 2031 include a $24 , $32 and $3 increase, respectively, as a result of an effective hedge accounting relationship. See Note 7 for additional information.
(9)As of December 31, 2025, there were $160.0 of Class A-1 Notes outstanding at SOFR+1.48 %, $100.0 of Class A-1L Notes outstanding at SOFR+1.48 %, $30.0 of Class A-1W Notes outstanding at SOFR+1.48 %, $20.0 of Class A-2L Notes outstanding at SOFR+1.60 %, $30.0 of Class B Notes outstanding at SOFR+1.75 % and $40.0 of Class C Notes outstanding at SOFR+2.15 %.
(10)As of December 31, 2025, there were $125.5 of Class A-1 Notes outstanding at SOFR+1.47 %, $150.0 of Class A-1 Senior Floating Rate Loans outstanding at SOFR+1.47 %, $19.0 of Class A-2 Notes outstanding at SOFR+1.65 %, $35.6 of Class B Notes outstanding at SOFR+1.80 % and $33.2 of Class C Notes outstanding at SOFR+2.10 %.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 9. Financing Arrangements (continued)
For the nine months ended September 30, 2026 and 2025, the components of total interest expense for the Company’s financing arrangements were as follows:
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
Arrangement(1) | Direct Interest Expense | Amortization of Deferred Financing Costs and Discount / Premium | Total Interest Expense | Direct Interest Expense | Amortization of Deferred Financing Costs and Discount / Premium | Total Interest Expense | ||||||||||||||||||||||||||||||||
Ambler Credit Facility(2) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Callowhill Credit Facility(2) | ||||||||||||||||||||||||||||||||||||||
CCT Tokyo Funding Credit Facility(2) | ||||||||||||||||||||||||||||||||||||||
Darby Creek Credit Facility(2) | ||||||||||||||||||||||||||||||||||||||
Meadowbrook Run Credit Facility(2) | ||||||||||||||||||||||||||||||||||||||
Senior Secured Revolving Credit Facility(2) | ||||||||||||||||||||||||||||||||||||||
| ( | ||||||||||||||||||||||||||||||||||||||
| CLO-1 Notes | ||||||||||||||||||||||||||||||||||||||
| CLO-2 Notes | ||||||||||||||||||||||||||||||||||||||
| CLO-3 Notes | ||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
______________________
(1)Borrowings of each of the Company’s wholly-owned, special-purpose financing subsidiaries are considered borrowings of the Company for purposes of complying with the asset coverage requirements applicable to BDCs under the 1940 Act.
(2)Direct interest expense includes the effect of non-usage fees.
(3)Direct interest expense includes the impact of interest rate swaps.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the nine months ended September 30, 2026 were $7,104 and 5.72 %, respectively.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the nine months ended September 30, 2025 were $8,174 and 5.48 %, respectively.
Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of September 30, 2026 and December 31, 2025.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies
The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. The Adviser has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote.
Litigation
Other than as set forth below, the Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts with its portfolio companies.
On May 4, 2026, a purported stockholder of the Company, Calvin Stuart, filed a putative securities class action complaint in the United States District Court for the Eastern District of Pennsylvania against the Company and certain of its current officers. The case is captioned Stuart v. FS KKR Capital Corp., et al., Case No. 2:26-cv-02969 (E.D. Pa.). The amended complaint, filed on September 28, 2026, alleges that the defendants, including the Adviser, violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder by making materially false and/or misleading statements and/or omissions concerning, among other things, portfolio valuations, portfolio restructuring, and the Company’s quarterly distribution strategy.
On May 12, 2026, a purported stockholder of the Company, Theodore Goodman, filed a shareholder derivative complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of the Company as nominal defendant against certain of the Company’s current officers and directors. The case is captioned Goodman v. Forman et al., No. 2:26-cv-03240 (E.D. Pa.). The complaint asserts various claims against the defendants, including but not limited to breach of fiduciary duties, violations of Section 14(a) of the Exchange Act, and contribution under Sections 10(b) and 21D of the Exchange Act against certain officers, on the basis that, among other things, the defendants allegedly failed to maintain adequate internal controls and allegedly made or caused the Company to make materially false and/or misleading statements and/or omissions concerning, among other things, portfolio valuations, portfolio restructuring, and the Company’s quarterly distribution strategy.
On June 29, 2026, a purported stockholder of the Company, Larry Jones, filed a verified shareholder derivative complaint in the United States District Court for the District of Maryland against the Adviser derivatively on behalf of the Company as nominal defendant. The case is captioned Jones v. FS/KKR Advisor, LLC et al., No. 1:26-cv-02593-JKB (D. Md.). The complaint asserts a single claim against the Adviser for breach of fiduciary duty pursuant to Section 36(b) of the 1940 Act, on the basis that the Adviser’s management, incentive, and administrative fees are so disproportionately large that they bear no reasonable relationship to the services rendered and could not have been the product of arm’s-length bargaining.
On July 15, 2026, a purported stockholder of the Company, the Employees Retirement System of the City of St. Louis, filed a verified shareholder derivative complaint in the United States District Court for the Southern District of New York against the Adviser derivatively on behalf of the Company. The case is captioned Employees Retirement System of the City of St. Louis v. FS/KKR Advisor, LLC, No. 1:26-cv-06003 (S.D.N.Y.). The complaint asserts a single claim against the Adviser for breach of fiduciary duty pursuant to Section 36(b) of the 1940 Act, on the basis that the Adviser’s management, incentive, and administrative fees are so disproportionately large that they bear no reasonable relationship to the services rendered and could not have been the product of arm’s-length bargaining.
On August 21, 2026, a purported stockholder of the Company, Joseph Bruno, filed a shareholder derivative complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of the Company as nominal defendant against certain of the Company’s current officers and directors. The case is captioned Bruno v. Forman et al., No. 2:26-cv-06159 (E.D. Pa.). The complaint asserts various claims against the defendants, including but not limited to breach of fiduciary duties, violations of Section 14(a) of the Exchange Act, and contribution under Sections 10(b) and 21D of the Exchange Act against certain officers, on the basis that, among other things, the defendants allegedly failed to maintain adequate internal controls and allegedly made or caused the Company to make materially false and/or misleading statements and/or omissions concerning, among other things, portfolio valuations, portfolio restructuring, and the Company’s quarterly distribution strategy.
The Company intends to vigorously defend these matters. The outcomes of outstanding legal matters are inherently unpredictable and subject to uncertainties. Based on information currently available, the Company cannot predict the outcome of these proceedings and is unable to reasonably estimate any possible loss or range of loss, if any, associated with these matters.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies (continued)
Unfunded Commitments
Unfunded commitments to provide funds to portfolio companies are not recorded in the Company’s consolidated balance sheets. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company has sufficient liquidity to fund these commitments. As of September 30, 2026, the Company’s unfunded commitments consisted of the following:
Category / Company(1) | Commitment Amount | |||||||
| Senior Secured Loans—First Lien | ||||||||
| 48Forty Solutions LLC | $ | |||||||
| 48Forty Solutions LLC | ||||||||
| Aareon AG | ||||||||
| AGS Health LLC | ||||||||
| AGS Health LLC | ||||||||
| Alacrity Solutions Group LLC | ||||||||
| Alacrity Solutions Group LLC | ||||||||
| A-Lign Assurance LLC | ||||||||
| A-Lign Assurance LLC | ||||||||
| American Vision Partners Corp | ||||||||
| Apex Service Partners LLC | ||||||||
| Arcfield Acquisition Corp | ||||||||
| Atwell LLC | ||||||||
| Atwell LLC | ||||||||
| AVE Holdings I Corp (fka Amerivet Partners Management Inc) | ||||||||
| Avetta LLC | ||||||||
| Avetta LLC | ||||||||
| Avetta LLC | ||||||||
| BGB Group LLC | ||||||||
| BGB Group LLC | ||||||||
| Bonterra LLC | ||||||||
| Cadence Education LLC | ||||||||
| Cambrex Corp | ||||||||
| Carrier Fire Protection | ||||||||
| Carrier Fire Protection | ||||||||
| Circana Group (f.k.a. NPD Group) | ||||||||
| Civica Group Ltd | ||||||||
| Civica Group Ltd | ||||||||
| Clarience Technologies LLC | ||||||||
| Clarience Technologies LLC | ||||||||
| CLEAResult Consulting Inc | ||||||||
| CLEAResult Consulting Inc | ||||||||
| Clearwater Analytics LLC | ||||||||
| Clearwater Analytics LLC | ||||||||
| Club Car Wash Operating LLC | ||||||||
| Club Car Wash Operating LLC | ||||||||
| ClubCorp Club Operations Inc | ||||||||
| ClubCorp Club Operations Inc | ||||||||
| Com Laude Group Ltd | ||||||||
| Com Laude Group Ltd | ||||||||
| Com Laude Group Ltd | ||||||||
| Command Alkon Inc | ||||||||
| Command Alkon Inc | ||||||||
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies (continued)
Category / Company(1) | Commitment Amount | |||||||
| Community Brands Inc | $ | |||||||
| Conservice LLC | ||||||||
| Consilium Safety Group AB | ||||||||
| CSafe Global | ||||||||
| Cyncly | ||||||||
| Cyncly | ||||||||
| Dental365 LLC | ||||||||
| Dental365 LLC | ||||||||
| DOXA Insurance Holdings LLC | ||||||||
| DuBois Chemicals Inc | ||||||||
| Eagle Railcar Services Roscoe Inc | ||||||||
| Eagle Railcar Services Roscoe Inc | ||||||||
| Eide Bailly LLP | ||||||||
| Eide Bailly LLP | ||||||||
| Envirotainer Ltd | ||||||||
| Excelitas Technologies Corp | ||||||||
| Express Wash Concepts LLC | ||||||||
| Express Wash Concepts LLC | ||||||||
| Flexera Software LLC | ||||||||
| Follett Software Co | ||||||||
| Fortnox AB | ||||||||
| Foundation Risk Partners Corp | ||||||||
| Foundation Risk Partners Corp | ||||||||
| Frontline Road Safety LLC | ||||||||
| Frontline Road Safety LLC | ||||||||
| Fullsteam Holdings LLC | ||||||||
| Fullsteam Holdings LLC | ||||||||
| Galway Partners Holdings LLC | ||||||||
| GE Vernova Electrification Software LLC | ||||||||
| Gigamon Inc | ||||||||
| Granicus Inc | ||||||||
| Heniff Transportation Systems LLC | ||||||||
| Higginbotham Insurance Agency Inc | ||||||||
| Highgate Hotels Inc | ||||||||
| Highgate Hotels Inc | ||||||||
| HM Dunn Co Inc | ||||||||
| Homrich & Berg Inc | ||||||||
| Homrich & Berg Inc | ||||||||
| Horizon CTS Buyer LLC | ||||||||
| Horizon CTS Buyer LLC | ||||||||
| Inhabit IQ | ||||||||
| Inhabit IQ | ||||||||
| iNova Pharmaceuticals (Australia) Pty Limited | ||||||||
| Insight Global LLC | ||||||||
| Insightsoftware.Com Inc | ||||||||
| Insightsoftware.Com Inc | ||||||||
| Integrated Power Services LLC | ||||||||
| Integrated Power Services LLC | ||||||||
| Integrity Marketing Group LLC | ||||||||
| J S Held LLC | ||||||||
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies (continued)
Category / Company(1) | Commitment Amount | |||||||
| Jeppesen Holdings LLC | $ | |||||||
| Keystone Agency Partners LLC | ||||||||
| Keystone Agency Partners LLC | ||||||||
| Laboratoires Vivacy SAS | ||||||||
| Lazer Logistics Inc | ||||||||
| Lazer Logistics Inc | ||||||||
| Learning Experience Corp/The | ||||||||
| Legends Hospitality LLC | ||||||||
| Lido Advisors LLC | ||||||||
| Lionbridge Technologies Inc | ||||||||
| Lipari Foods LLC | ||||||||
| Magna Legal Services LLC | ||||||||
| Magna Legal Services LLC | ||||||||
| MAI Capital Management LLC | ||||||||
| MAI Capital Management LLC | ||||||||
| MAI Capital Management LLC | ||||||||
| MB2 Dental Solutions LLC | ||||||||
| Med-Metrix | ||||||||
| Med-Metrix | ||||||||
| Mercer Advisors | ||||||||
| Model N Inc | ||||||||
| NAVEX Global Inc | ||||||||
| NAVEX Global Inc | ||||||||
| NEFCO Corp | ||||||||
| NEFCO Corp | ||||||||
| NeoGov Newt Holdco Inc | ||||||||
| NeoGov Newt Holdco Inc | ||||||||
| NeoGov Newt Holdco Inc | ||||||||
| Net Documents | ||||||||
| Netsmart Technologies Inc | ||||||||
| Netsmart Technologies Inc | ||||||||
| New Era Technology LLC | ||||||||
| OEConnection LLC | ||||||||
| OEConnection LLC | ||||||||
| Orion Services Group LLC | ||||||||
| Oxford Global Resources LLC | ||||||||
| PartsSource Inc | ||||||||
| Pavement Preservation Group Inc | ||||||||
| PCI Pharma Services | ||||||||
| PCI Pharma Services | ||||||||
| Pike Corp | ||||||||
| Pike Corp | ||||||||
| Premise Health Holding Corp | ||||||||
| Premise Health Holding Corp | ||||||||
| PROS Holdings Inc | ||||||||
| PSC Group | ||||||||
| Radwell International LLC | ||||||||
| Railpros Inc | ||||||||
| Railpros Inc | ||||||||
| Resa Power LLC | ||||||||
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies (continued)
Category / Company(1) | Commitment Amount | |||||||
| Resa Power LLC | $ | |||||||
| Resa Power LLC | ||||||||
| Revere Superior Holdings Inc | ||||||||
| Rialto Capital Management LLC | ||||||||
| Rockefeller Capital Management LP | ||||||||
| Safe-Guard Products International LLC | ||||||||
| SAMBA Safety Inc | ||||||||
| SAMBA Safety Inc | ||||||||
| Schellman Inc | ||||||||
| Schellman Inc | ||||||||
| Service Express Inc | ||||||||
| Service Express Inc | ||||||||
| Service Logic LLC | ||||||||
| Service Logic LLC | ||||||||
| Sphera Solutions Inc | ||||||||
| Sphera Solutions Inc | ||||||||
| Sphera Solutions Inc | ||||||||
| Spins LLC | ||||||||
| Spotless Brands LLC | ||||||||
| Sunbelt Solomon Services LLC | ||||||||
| Sunbelt Solomon Services LLC | ||||||||
| Sweeping Corp of America LLC | ||||||||
| Time Manufacturing Co | ||||||||
| Trackunit ApS | ||||||||
| Trackunit ApS | ||||||||
| Turnpoint Services Inc | ||||||||
| USIC Holdings Inc | ||||||||
| USIC Holdings Inc | ||||||||
| Veriforce LLC | ||||||||
| Veriforce LLC | ||||||||
| Vermont Information Processing Inc | ||||||||
| Vermont Information Processing Inc | ||||||||
| Version1 Software Ltd | ||||||||
| VetCor Professional Practices LLC | ||||||||
| Vigor Marine Group LLC | ||||||||
| Vigor Marine Group LLC | ||||||||
| Vitu | ||||||||
| Waste Services Group Pty Ltd | ||||||||
| Wealth Enhancement Group LLC | ||||||||
| Wealth Enhancement Group LLC | ||||||||
| Wedgewood Weddings | ||||||||
| Wedgewood Weddings | ||||||||
| West Star Aviation Inc | ||||||||
| West Star Aviation Inc | ||||||||
| Woolpert Inc | ||||||||
| Worldwise Inc | ||||||||
| Xylem Kendall | ||||||||
| Xylem Kendall | ||||||||
| Zellis Holdings Ltd | ||||||||
| Zendesk Inc | ||||||||
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 10. Commitments and Contingencies (continued)
Category / Company(1) | Commitment Amount | |||||||
| Zeus Industrial Products Inc | $ | |||||||
| Subordinated Debt | ||||||||
| Cyncly | ||||||||
| Nidda Healthcare Holding AG | ||||||||
| Asset Based Finance | ||||||||
| Advancion Corp/IL, Revolver | ||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||
| Bond Aviation Holdings LLC, Term Loan | ||||||||
| Likewize Corp, Revolver | ||||||||
| Nottingdale Receivables Limited (FKA TalkTalk Telecom Group Ltd), Revolver | ||||||||
| Philippine Airlines 777, Term Loan | ||||||||
| Philippine Airlines 777, Term Loan | ||||||||
| SCRIPPS SPV LLC (FKA EW Scripps Co/The), Revolver | ||||||||
| Sotheby's, Revolver | ||||||||
| TPSI Receivables LLC (Tropicana Products Inc), Revolver | ||||||||
| Wood Group Receivables LLC (FKA John Wood Group PLC), Revolver | ||||||||
| Total | $ | |||||||
| Unfunded Asset Based Finance/Other commitments | $ | |||||||
_____________
As of September 30, 2026, the Company’s debt commitments are comprised of $607.3 revolving credit facilities and $433.8 delayed draw term loans, which generally are used for acquisitions or capital expenditures and are subject to certain performance tests. Such unfunded debt commitments have a fair value representing unrealized appreciation (depreciation) of $(16.0 ). The Company’s unfunded Asset Based Finance/Other commitments generally require certain conditions to be met or actual approval from the Adviser prior to funding.
The Senior Secured Revolving Credit Facility provides for the issuance of letters of credit in an initial aggregate face amount of up to $240 , subject to increase or reduction from time to time pursuant to the terms of the Senior Secured Revolving Credit Facility. As of September 30, 2026, $50 of such letters of credit have been issued.
As of September 30, 2026, the Company also has an unfunded commitment to provide $434.0 of capital to COPJV. The capital commitment can be satisfied with contributions of cash and/or investments. The capital commitments cannot be drawn without an affirmative vote by both the Company’s and SCRS’s representatives on COPJV’s board of managers.
While the Company does not expect to fund all of its unfunded commitments, there can be no assurance that it will not be required to do so.
In the normal course of business, the Company may enter into guarantees on behalf of portfolio companies. Under such arrangements, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. The Company had one such guarantee on behalf of Avenue One PropCo for up to $18.7 outstanding at September 30, 2026.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 11. Financial Highlights
The following is a schedule of financial highlights of the Company for the nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Per Share Data:(1) | ||||||||||||||
| Net asset value, beginning of period | $ | $ | ||||||||||||
Results of operations(2) | ||||||||||||||
| Net investment income (loss) | ||||||||||||||
| Net realized gain (loss) and unrealized appreciation (depreciation) | ( | ( | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | ( | |||||||||||||
| Distributions to preferred stockholders | ( | |||||||||||||
| Net increase (decrease) in net assets resulting from operations applicable to common stockholders | ( | |||||||||||||
Common stockholder distributions(3) | ||||||||||||||
| Distributions from net investment income to common stockholders | ( | ( | ||||||||||||
| Distributions from net realized gain on investments to common stockholders | ||||||||||||||
| Net decrease in net assets resulting from common stockholder distributions | ( | ( | ||||||||||||
| Capital share transactions | ||||||||||||||
Repurchases of common stock(4) | ||||||||||||||
| Issuance of preferred stock | ||||||||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | ||||||||||||||
| Net asset value, end of period | $ | $ | ||||||||||||
| Per share market value, end of period | $ | $ | ||||||||||||
| Shares of common stock outstanding, end of period | ||||||||||||||
Total return based on net asset value(5) | ( | % | % | |||||||||||
Total return based on market value(6) | ( | % | ( | % | ||||||||||
| Ratio/Supplemental Data: | ||||||||||||||
| Net assets, end of period | $ | $ | ||||||||||||
Ratio of net investment income to average net assets(7) | % | % | ||||||||||||
Ratio of total operating expenses to average net assets(7) | % | % | ||||||||||||
Ratio of waived expenses to average net assets(7) | ( | % | ||||||||||||
Ratio of net operating expenses to average net assets(7) | % | % | ||||||||||||
Portfolio turnover(8) | % | % | ||||||||||||
| Total amount of senior securities outstanding, exclusive of treasury securities | $ | $ | ||||||||||||
Asset coverage per unit(9) | ||||||||||||||
_______________
(1)Per share data may be rounded in order to recompute the ending net asset value per share.
(2)The per share data was derived by using the weighted average shares of common stock outstanding during the applicable period.
(3)The per share data for distributions reflect the actual amount of distributions declared per share of common stock during the applicable period.
(4)Represents the incremental impact of the Company’s stock repurchase programs by buying shares of the Company’s common stock in the open market at a price lower than net asset value per share.
(5)The total return based on net asset value for each period presented was calculated by taking the net asset value per share as of the end of the applicable period, adding the distributions per share that were declared during the period and dividing the total by the net asset value per share at the beginning of the period. Total return based on net asset value does not consider the effect of any sales commissions or charges that may be incurred in connection with the sale of shares of the Company’s common stock. The historical calculation of total return based on net asset value in the table should not be considered a representation of the Company’s future total return based on net asset value, which may be greater or less than the return shown in the table due to a number of factors, including the Company’s ability or inability to make investments in companies that meet its investment criteria, the interest rates payable on the debt securities the Company acquires, the level of the Company’s expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which the Company encounters competition in its markets and general economic conditions. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods. The total return calculations set forth above represent the total return on the Company’s investment portfolio during the applicable period and do not
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(dollar amounts in millions, except per share amounts, unless otherwise noted)
Note 11. Financial Highlights (continued)
represent an actual return to stockholders. Total return based on net asset value for the nine months ended September 30, 2026 and 2025 are not annualized.
(6)The total return based on market value for each period presented was calculated based on the change in market price during the applicable period, including the impact of distributions reinvested in accordance with the Company’s DRP. Total return based on market value does not consider the effect of any sales commissions or charges that may be incurred in connection with the sale of shares of the Company’s common stock. The historical calculation of total return based on market value in the table should not be considered a representation of the Company’s future total return based on market value, which may be greater or less than the return shown in the table due to a number of factors, including the Company’s ability or inability to make investments in companies that meet its investment criteria, the interest rates payable on the debt securities the Company acquires, the level of the Company’s expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which the Company encounters competition in its markets, general economic conditions and fluctuations in per share market value. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods. Total return based on market value for the nine months ended September 30, 2026 and 2025 are not annualized.
(7)Weighted average net assets during the applicable period are used for this calculation. Ratios for the nine months ended September 30, 2026 and 2025 are annualized. Annualized ratios for the nine months ended September 30, 2026 are not necessarily indicative of the ratios that may be expected for the year ending December 31, 2026. The following is a schedule of supplemental ratios for the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Ratio of subordinated income incentive fees to average net assets (net of waivers) | % | % | ||||||||||||
| Ratio of interest expense to average net assets | % | % | ||||||||||||
(8)Portfolio turnover for the nine months ended September 30, 2026 and 2025 are not annualized.
(9)Asset coverage per unit is the ratio of the carrying value of the Company’s total consolidated assets, less liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness.
Note 12. Segment Reporting
The Company operates through a single operating and reporting segment with an investment objective to generate current income and, to a lesser extent, long-term capital appreciation. The chief operating decision maker, or CODM, is comprised of the Company’s chief executive officer and chief investment officer. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase in stockholders’ equity resulting from operations, or net income. In addition to numerous other factors and metrics, the CODM utilizes net income as a key metric in determining the amount of dividends to be distributed to the Company’s stockholders. As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying consolidated balance sheets as “total assets” and the significant segment expenses are listed on the accompanying consolidated statements of operations.
Note 13. Subsequent Events
Common Stock Distribution
On October 7, 2026, the Board of Directors declared a regular quarterly distribution of $0.44 per share, which will be paid on or about December 24, 2026 to common stockholders of record as of the close of business on December 16, 2026. Additionally, on October 7, 2026, the Board of Directors declared a special distribution of $0.20 per share, which will be paid on or about December 15, 2026 to common stockholders of record as of the close of business on December 1, 2026. The timing and amount of any future distributions to common stockholders are subject to applicable legal restrictions and the sole discretion of the Board of Directors.
Convertible Preferred Stock Dividend
On October 28, 2026, the Board of Directors declared a cash dividend on the Convertible Preferred Stock for the period from September 30, 2026 to, but excluding, December 31, 2026 in the amount of $0.3125 per preferred share, which will be paid on or about December 31, 2026 to the holders of record as of the close of business on December 15, 2026.
Issuer Share Repurchases
During the period from October 1, 2026 through October 30, 2026, the Company repurchased 1,546,162 shares of common stock pursuant to the Company Share Repurchase Authorization at an average price per share (inclusive of commissions paid) of $10.88 (totaling $17 ). All such repurchases were made on the Company’s behalf by a third-party agent on the open market at prices below net asset value per share in transactions intended to qualify for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(dollar amounts in millions, except per share amounts)
All dollar amounts (except per share amounts) in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are presented in millions unless otherwise noted.
The information contained in this section should be read in conjunction with our unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In this report, “we,” “us,” “our” and the “Company” refer to FS KKR Capital Corp. and the “Adviser” refers to FS/KKR Advisor, LLC.
Forward-Looking Statements
Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:
•our future operating results;
•our business prospects and the prospects of the companies in which we may invest;
•the impact of the investments that we expect to make;
•the ability of our portfolio companies to achieve their objectives;
•our current and expected financings and investments;
•receiving and maintaining corporate credit ratings;
•the impact of changing interest rate and inflation levels, and their impact on our portfolio companies and on the industries in which we invest;
•the adequacy of our cash resources, financing sources and working capital;
•the timing and amount of cash flows, distributions and dividends, if any, from our portfolio companies;
•our contractual arrangements and relationships with third parties;
•actual and potential conflicts of interest with the other funds managed by the Adviser, Future Standard, KKR Credit or any of their respective affiliates;
•purchase activity in respect of the Company’s shares of common stock, including with respect to the Company’s publicly announced purchase programs;
•the dependence of our future success on the general economy and its effect on the industries in which we may invest;
•general economic, political and industry trends and other external factors, including uncertainty surrounding the financial and political stability of the United States and other countries;
•our use of financial leverage;
•the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments;
•the ability of the Adviser or its affiliates to attract and retain highly talented professionals;
•our ability to maintain our qualification as a RIC and as a BDC;
•the impact on our business of U.S. and international financial reform legislation, rules and regulations;
•the effect of changes to tax legislation on us and the portfolio companies in which we may invest and our and their tax position; and
•the tax status of the enterprises in which we may invest.
Words such as “anticipate,” “believe,” “expect,” “intend,” “project” and “future” or similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this quarterly report on Form 10-Q are not guarantees of future performance or events and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause our actual results or future events to differ
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materially from those expressed or forecasted in the forward-looking statements for any reason, including those factors set forth in “Item 1A. Risk Factors,” in the Company’s annual report on Form 10-K and subsequent filings. Factors that could cause actual results or future events to differ materially include changes relating to those set forth above and the following, among others:
•changes in the economy;
•geo-political risks;
•risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or pandemics;
•the Company Share Repurchase Authorization does not require the Company to repurchase any specific number of shares; there is no assurance that the Company or any of its affiliates will purchase shares of the Company’s common stock at any specific discount levels or in any specific amounts; and there is no assurance that the market price of the Company’s shares of common stock, either absolutely or relative to net asset value, will increase as a result of any share purchase activity, or that any purchase program or plan will enhance stockholder value over the long term;
•future changes in laws or regulations and conditions in our operating areas; and
•the price at which shares of our common stock may trade on the NYSE.
We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report on Form 10-Q. You should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Stockholders are advised to consult any additional disclosures that we may make directly to stockholders or through reports that we may file in the future with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements and projections contained in this quarterly report on Form 10-Q are excluded from the safe harbor protection provided by Section 27A of the Securities Act and Section 21E of the Exchange Act.
Overview
We were incorporated under the general corporation laws of the State of Maryland on December 21, 2007 and formally commenced investment operations on January 2, 2009. We are an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act and has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code.
We are externally managed by the Adviser pursuant to the investment advisory agreement dated as of June 16, 2021, or the Advisory Agreement, and supervised by our board of directors, or the Board or the Board of Directors, a majority of whom are independent.
Our investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. We seek to meet our investment objectives by:
•utilizing the experience and expertise of the management team of the Adviser;
•employing a defensive investment approach focused on long-term credit performance and preservation of principal;
•focusing primarily on debt investments in a broad array of private U.S. companies, including middle-market companies, which we define as companies with annual EBITDA of $50 million to $150 million at the time of investment;
•investing primarily in established, stable enterprises with positive cash flows; and
•maintaining rigorous portfolio monitoring in an attempt to anticipate and pre-empt negative credit events within our portfolio, such as an event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company.
We pursue our investment objective by investing primarily in the debt of middle market U.S. companies with a focus on originated transactions sourced through the network of the Adviser and its affiliates. We define direct originations as any investment where the Company’s investment adviser, sub-adviser or their affiliates had negotiated the terms of the transaction beyond just the price, which, for example, may include negotiating financial covenants, maturity dates or interest rate terms. These directly originated transactions include participation in other originated transactions where there may be third parties involved, or a bank acting as an intermediary, for a closely held club, or similar transactions.
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Our portfolio is comprised primarily of investments in senior secured loans and second lien secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. Although we do not expect a significant portion of our portfolio to be comprised of subordinated loans, there is no limit on the amount of such loans in which we may invest. We may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the “over-the-counter” market or directly from our target companies as primary market or directly originated investments. In connection with our debt investments, we may on occasion receive equity interests such as warrants or options as additional consideration. We may also purchase or otherwise acquire interests in the form of common or preferred equity or equity-related securities, such as rights and warrants that may be converted into or exchanged for common stock or other equity or the cash value of common stock or other equity, including through a co-investment with a financial sponsor or possibly the restructuring of an investment. In addition, a portion of our portfolio may be comprised of corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps. The Adviser will seek to tailor our investment focus as market conditions evolve. Depending on market conditions, we may increase or decrease our exposure to less senior portions of the capital structures of our portfolio companies or otherwise make opportunistic investments, such as where the market price of loans, bonds or other securities reflects a lower value than deemed warranted by the Adviser’s fundamental analysis. Such investment opportunities may occur due to general dislocations in the markets, a misunderstanding by the market of a particular company or an industry being out of favor with the broader investment community and may include event driven investments, anchor orders and structured products.
The senior secured loans, second lien secured loans and senior secured bonds in which we invest generally have stated terms of three to seven years and subordinated debt investments that we make generally have stated terms of up to ten years, but the expected average life of such securities is generally three to four years. However, we may invest in loans and securities with any maturity or duration. Our debt investments may be rated by a NRSRO and, in such case, generally will carry a rating below investment grade (rated lower than “Baa3” by Moody’s or lower than “BBB-” by S&P). We may invest without limit in debt or other securities of any rating, as well as debt or other securities that have not been rated by a NRSRO.
Revenues
The principal measure of our financial performance is net increase in net assets resulting from operations, which includes net investment income, net realized gain or loss on investments, net realized gain or loss on foreign currency, net unrealized appreciation or depreciation on investments and net unrealized gain or loss on foreign currency. Net investment income is the difference between our income from interest, dividends, fees and other investment income and our operating and other expenses. Net realized gain or loss on investments is the difference between the proceeds received from dispositions of portfolio investments and their amortized cost, including the respective realized gain or loss on foreign currency for those foreign denominated investment transactions. Net realized gain or loss on foreign currency is the portion of realized gain or loss attributable to foreign currency fluctuations. Net unrealized appreciation or depreciation on investments is the net change in the fair value of our investment portfolio, including the respective unrealized gain or loss on foreign currency for those foreign denominated investments. Net unrealized gain or loss on foreign currency is the net change in the value of receivables or accruals due to the impact of foreign currency fluctuations.
We principally generate revenues in the form of interest income on the debt investments we hold. In addition, we generate revenues in the form of non-recurring commitment, closing, origination, structuring or diligence fees, monitoring fees, fees for providing managerial assistance, consulting fees, prepayment fees and performance-based fees. We may also generate revenues in the form of dividends and other distributions on the equity or other securities we hold.
Expenses
Our primary operating expenses include the payment of management and incentive fees and other expenses under the Advisory Agreement and the administration agreement dated as of April 9, 2018 between us and our Adviser, or the Administration Agreement, interest expense from financing arrangements and other indebtedness, and other expenses necessary for our operations. The management and incentive fees compensate the Adviser for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.
The Adviser oversees our day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, certain government and regulatory affairs activities, and other administrative services. The Adviser also performs, or oversees the performance of, our corporate operations and required administrative services, which includes being responsible for the financial records that we are required to maintain and preparing reports for our stockholders and reports filed with the SEC. In addition, the Adviser assists us in calculating our net asset value, overseeing the preparation and filing of tax returns and the printing and dissemination of reports to our stockholders, and generally overseeing the payment of our expenses and the performance of administrative and professional services rendered to us by others.
Pursuant to the Administration Agreement, we reimburse the Adviser for expenses necessary to perform services related to our administration and operations, including the Adviser’s allocable portion of the compensation and related expenses of certain personnel of Future Standard and KKR Credit providing administrative services to us on behalf of the Adviser. We reimburse the Adviser no
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less than quarterly for all costs and expenses incurred by the Adviser in performing its obligations and providing personnel and facilities under the Administration Agreement. The Adviser allocates the cost of such services to us based on factors such as total assets, revenues, time allocations and/or other reasonable metrics. Our Board reviews the methodology employed in determining how the expenses are allocated to us and the proposed allocation of administrative expenses among us and certain affiliates of the Adviser. Our Board then assesses the reasonableness of such reimbursements for expenses allocated to us based on the breadth, depth and quality of such services as compared to the estimated cost to us of obtaining similar services from third-party service providers known to be available. In addition, our Board considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, our Board compares the total amount paid to the Adviser for such services as a percentage of our net assets to the same ratio as reported by other comparable BDCs.
We bear all other expenses of our operations and transactions, including all other expenses incurred by the Adviser or us in connection with administering our business, including expenses incurred by the Adviser in performing administrative services for us and administrative personnel paid by the Adviser, to the extent they are not controlling persons of the Adviser or any of its affiliates, subject to the limitations included in the Advisory Agreement and the Administration Agreement. See Note 4 to our unaudited consolidated financial statements included herein for more information regarding the expenses borne by us and, thus, our stockholders.
In addition, we have contracted with State Street Bank and Trust Company to provide various accounting and administrative services, including, but not limited to, preparing preliminary financial information for review by the Adviser, preparing and monitoring expense budgets, maintaining accounting and corporate books and records, processing trade information provided by us and performing testing with respect to RIC compliance.
Portfolio Investment Activity for the Three and Nine Months Ended September 30, 2026 and for the Year Ended December 31, 2025
Total Portfolio Activity
The following tables present certain selected information regarding our portfolio investment activity for the three and nine months ended September 30, 2026:
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| Net Investment Activity | September 30, 2026 | September 30, 2026 | ||||||||||||||||||||||||||||||||||||
| Purchases | $ | 335 | $ | 1,424 | ||||||||||||||||||||||||||||||||||
| Sales and Repayments | (442) | (2,486) | ||||||||||||||||||||||||||||||||||||
| Net Portfolio Activity | $ | (107) | $ | (1,062) | ||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||
| New Investment Activity by Asset Class | Purchases | Percentage | Sales and Repayments | Percentage | Purchases | Percentage | Sales and Repayments | Percentage | ||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | $ | 290 | 87 | % | $ | (269) | 61 | % | $ | 1,006 | 71 | % | $ | (1,423) | 57 | % | ||||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | — | — | (37) | 8 | % | — | — | (42) | 2 | % | ||||||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | — | — | — | — | 7 | 0 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
| Subordinated Debt | — | — | — | — | 29 | 2 | % | (59) | 2 | % | ||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | 45 | 13 | % | (124) | 28 | % | 377 | 27 | % | (690) | 28 | % | ||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | — | — | — | — | — | — | (189) | 8 | % | |||||||||||||||||||||||||||||||||||||||||
Equity/Other(1) | — | — | (12) | 3 | % | 5 | 0 | % | (83) | 3 | % | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 335 | 100 | % | $ | (442) | 100 | % | $ | 1,424 | 100 | % | $ | (2,486) | 100 | % | ||||||||||||||||||||||||||||||||||
_____________________
(1)Equity/Other includes investments in preferred equity investments. During the three and nine months ended September 30, 2026, purchases of preferred equity investments were $0 and $0, respectively, and sales and repayments of preferred equity investments were $2 and $18, respectively.
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The following table summarizes the composition of our investment portfolio at cost and fair value as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost(1) | Fair Value | Percentage of Portfolio | Amortized Cost(1) | Fair Value | Percentage of Portfolio | |||||||||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—First Lien | $ | 7,053 | $ | 6,656 | 58.9 | % | $ | 7,819 | $ | 7,523 | 57.8 | % | ||||||||||||||||||||||||||||||||||||||
| Senior Secured Loans—Second Lien | 544 | 437 | 3.9 | % | 598 | 539 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other Senior Secured Debt | 43 | 44 | 0.4 | % | 65 | 55 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Subordinated Debt | 109 | 101 | 0.9 | % | 122 | 126 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Asset Based Finance | 1,561 | 1,314 | 11.6 | % | 1,831 | 1,694 | 13.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | 1,984 | 1,634 | 14.4 | % | 2,202 | 1,968 | 15.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Equity/Other(2) | 1,129 | 1,120 | 9.9 | % | 1,104 | 1,104 | 8.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 12,423 | $ | 11,306 | 100.0 | % | $ | 13,741 | $ | 13,009 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||
_____________________
(1)Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts and PIK interest or dividends, as applicable, on investments.
(2)As of September 30, 2026, Equity/Other included $831 of preferred equity investments at fair value.
The following table presents certain selected information regarding the composition of our investment portfolio as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Number of Portfolio Companies | 234 | 232 | |||||||||||||||||||||||||||||||||||||||||||||
% Variable Rate Debt Investments (based on fair value)(1)(2) | 60.1% | 60.9% | |||||||||||||||||||||||||||||||||||||||||||||
% Fixed Rate Debt Investments (based on fair value)(1)(2) | 9.5% | 8.2% | |||||||||||||||||||||||||||||||||||||||||||||
% Other Income Producing Investments (based on fair value)(3) | 19.2% | 21.4% | |||||||||||||||||||||||||||||||||||||||||||||
% Non-Income Producing Investments (based on fair value)(2) | 7.8% | 6.1% | |||||||||||||||||||||||||||||||||||||||||||||
% of Investments on Non-Accrual (based on fair value) | 3.4% | 3.4% | |||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Annual Yield on Accruing Debt Investments(2)(4) | 10.0% | 10.1% | |||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Annual Yield on All Debt Investments(5) | 9.0% | 9.3% | |||||||||||||||||||||||||||||||||||||||||||||
(1)“Debt Investments” means investments that pay or are expected to pay a stated interest rate, stated dividend rate or other similar stated return.
(2)Does not include investments on non-accrual status.
(3)“Other Income Producing Investments” means investments that pay or are expected to pay interest, dividends or other income to the Company on an ongoing basis but do not have a stated interest rate, stated dividend rate or other similar stated return.
(4)The Weighted Average Annual Yield on Accruing Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each accruing Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each accruing Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. Stated annual interest rate for floating rate Debt Investments assumes the greater of (a) the respective base rate in effect as of September 30, 2026, and (b) the stated base rate floor. The base rate utilized in this calculation may not be indicative of the base rates for specific contracts as of September 30, 2026.
(5)The Weighted Average Annual Yield on All Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. Stated annual interest rate for floating rate Debt Investments assumes the greater of (a) the respective base rate in effect as of September 30, 2026, and (b) the stated base rate floor. The base rate utilized in this calculation may not be indicative of the base rates for specific contracts as of September 30, 2026.
For the nine months ended September 30, 2026, our total return based on net asset value was (6.08)% and our total return based on market value was (16.20)%. For the year ended December 31, 2025, our total return based on net asset value was 0.21% and our total return based on market value was (20.31)%. See footnotes 5 and 6 to the table included in Note 11 to our unaudited consolidated financial statements included herein for information regarding the calculation of our total return based on net asset value and total return based on market value, respectively.
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Direct Originations
We define Direct Originations as any investment where the Adviser or its affiliates negotiates the terms of the transaction beyond just the price, which, for example, may include negotiating financial covenants, maturity dates or interest rate terms. These Direct Originations include participation in other originated transactions where there may be third parties involved, or a bank acting as an intermediary, for a closely held club, or similar transactions. The following table presents certain selected information regarding our Direct Originations as of September 30, 2026 and December 31, 2025:
Characteristics of All Direct Originations held in Portfolio | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||
| Number of Portfolio Companies | 226 | 220 | ||||||||||||||||||||||||
% of Investments on Non-Accrual (based on fair value) | 3.0% | 3.4% | ||||||||||||||||||||||||
Total Cost of Direct Originations | $12,063.5 | $13,350.0 | ||||||||||||||||||||||||
Total Fair Value of Direct Originations | $10,924.7 | $12,636.0 | ||||||||||||||||||||||||
% of Total Investments, at Fair Value | 96.6% | 97.1% | ||||||||||||||||||||||||
Weighted Average Annual Yield on Accruing Debt Investments(1) | 10.0% | 10.1% | ||||||||||||||||||||||||
Weighted Average Annual Yield on All Debt Investments(2) | 9.2% | 9.3% | ||||||||||||||||||||||||
_____________________
(1)The Weighted Average Annual Yield on Accruing Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each accruing Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each accruing Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. Does not include Debt Investments on non-accrual status. Stated annual interest rate for floating rate Debt Investments assumes the greater of (a) the respective base rate in effect as of September 30, 2026, and (b) the stated base rate floor. The base rate utilized in this calculation may not be indicative of the base rates for specific contracts as of September 30, 2026.
(2)The Weighted Average Annual Yield on All Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. Stated annual interest rate for floating rate Debt Investments assumes the greater of (a) the respective base rate in effect as of September 30, 2026, and (b) the stated base rate floor. The base rate utilized in this calculation may not be indicative of the base rates for specific contracts as of September 30, 2026.
Credit Opportunities Partners JV, LLC
COPJV is a joint venture between the Company and SCRS. COPJV’s second amended and restated limited liability company agreement, or the COPJV Agreement, requires the Company and SCRS to provide capital to COPJV of up to $2,975 in the aggregate where the Company and SCRS would provide approximately 79% and 21%, respectively, of the committed capital. Pursuant to the terms of the COPJV Agreement, the Company and SCRS each have 50% voting control of COPJV and are required to agree on all investment decisions as well as certain other significant actions for COPJV. COPJV invests its capital in a range of investments, including senior secured loans (both first lien and second lien) to middle market companies, broadly syndicated loans, equity, warrants and other investments. As administrative agent of COPJV, the Company performs certain day-to-day management responsibilities on behalf of COPJV and is entitled to a fee of 0.25% of COPJV’s assets under administration, calculated and payable quarterly in arrears. As of September 30, 2026, the Company and SCRS have funded $2,520.0 to COPJV, of which $2,016.0 was from the Company.
Below is a summary of COPJV’s portfolio as of September 30, 2026 and December 31, 2025:
| As of | ||||||||||||||
September 30, 2026 | December 31, 2025 | |||||||||||||
Total debt investments(1) | $ | 3,924.1 | $ | 4,530.1 | ||||||||||
Weighted average annual yield on accruing debt investments(2) | 9.5 | % | 9.5 | % | ||||||||||
| Number of portfolio companies in COPJV | 141 | 158 | ||||||||||||
| Largest investment in a single portfolio company | $ | 108.3 | $ | 107.3 | ||||||||||
| Unfunded commitments | $ | 38.2 | $ | 111.9 | ||||||||||
____________
(1)“Debt Investments” means investments that pay or are expected to pay a stated interest rate, stated dividend rate or other similar stated return.
(2)The Weighted Average Annual Yield on Accruing Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each accruing Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for
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any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each accruing Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. Stated annual interest rate for floating rate Debt Investments assumes the greater of (a) the respective base rate in effect as of September 30, 2026, and (b) the stated base rate floor. The base rate utilized in this calculation may not be indicative of the base rates for specific contracts as of September 30, 2026.
Portfolio Composition by Industry Classification
The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | ||||||||||||||||||||||||||
| (Unaudited) | December 31, 2025 | |||||||||||||||||||||||||
| Industry Classification | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
| Capital Goods | $ | 1,295 | 11.5 | % | $ | 1,542 | 11.9 | % | ||||||||||||||||||
| Commercial & Professional Services | 1,326 | 11.7 | % | 1,726 | 13.3 | % | ||||||||||||||||||||
| Consumer Discretionary Distribution & Retail | 19 | 0.2 | % | 60 | 0.5 | % | ||||||||||||||||||||
| Consumer Durables & Apparel | 311 | 2.7 | % | 306 | 2.4 | % | ||||||||||||||||||||
| Consumer Services | 232 | 2.1 | % | 263 | 2.0 | % | ||||||||||||||||||||
| Consumer Staples Distribution & Retail | 34 | 0.3 | % | 99 | 0.8 | % | ||||||||||||||||||||
| Credit Opportunities Partners JV, LLC | 1,634 | 14.4 | % | 1,968 | 15.1 | % | ||||||||||||||||||||
| Energy | 1 | 0.0 | % | 24 | 0.2 | % | ||||||||||||||||||||
| Equity Real Estate Investment Trusts (REITs) | 199 | 1.8 | % | 264 | 2.0 | % | ||||||||||||||||||||
| Financial Services | 711 | 6.3 | % | 836 | 6.4 | % | ||||||||||||||||||||
| Food, Beverage & Tobacco | 23 | 0.2 | % | 56 | 0.4 | % | ||||||||||||||||||||
| Health Care Equipment & Services | 1,573 | 13.9 | % | 1,668 | 12.8 | % | ||||||||||||||||||||
| Household & Personal Products | 8 | 0.1 | % | 112 | 0.9 | % | ||||||||||||||||||||
| Insurance | 514 | 4.5 | % | 547 | 4.2 | % | ||||||||||||||||||||
| Materials | 292 | 2.6 | % | 276 | 2.1 | % | ||||||||||||||||||||
| Media & Entertainment | 461 | 4.1 | % | 508 | 3.9 | % | ||||||||||||||||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 196 | 1.7 | % | 217 | 1.7 | % | ||||||||||||||||||||
| Real Estate Management & Development | — | — | 1 | 0.0 | % | |||||||||||||||||||||
| Software & Services | 2,041 | 18.1 | % | 2,134 | 16.4 | % | ||||||||||||||||||||
| Technology Hardware & Equipment | 22 | 0.2 | % | 2 | 0.0 | % | ||||||||||||||||||||
| Telecommunication Services | 62 | 0.5 | % | 109 | 0.8 | % | ||||||||||||||||||||
| Transportation | 352 | 3.1 | % | 291 | 2.2 | % | ||||||||||||||||||||
| Total | $ | 11,306 | 100.0 | % | $ | 13,009 | 100.0 | % | ||||||||||||||||||
Portfolio Asset Quality
In addition to various risk management and monitoring tools, the Adviser uses an investment rating system to characterize and monitor the expected level of returns on each investment in our portfolio. The Adviser uses an investment rating scale of 1 to 4. The following is a description of the conditions associated with each investment rating:
| Investment Rating | Summary Description | |||||||
| 1 | Performing investment—generally executing in accordance with plan and there are no concerns about the portfolio company’s performance or ability to meet covenant requirements. | |||||||
| 2 | Performing investment—no concern about repayment of both interest and our cost basis but company’s recent performance or trends in the industry require closer monitoring. | |||||||
| 3 | Underperforming investment—some loss of interest or dividend possible, but still expecting a positive return on investment. | |||||||
| 4 | Underperforming investment—concerns about the recoverability of principal or interest. | |||||||
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The following table shows the distribution of our investments on the 1 to 4 investment rating scale at fair value as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Investment Rating | Fair Value | Percentage of Portfolio | Fair Value | Percentage of Portfolio | ||||||||||||||||||||||
| 1 | $ | 7,300 | 65 | % | $ | 8,774 | 67 | % | ||||||||||||||||||
| 2 | 2,885 | 25 | % | 3,212 | 25 | % | ||||||||||||||||||||
| 3 | 859 | 8 | % | 760 | 6 | % | ||||||||||||||||||||
| 4 | 262 | 2 | % | 263 | 2 | % | ||||||||||||||||||||
| Total | $ | 11,306 | 100 | % | $ | 13,009 | 100 | % | ||||||||||||||||||
The amount of the portfolio in each grading category may vary substantially from period to period resulting primarily from changes in the composition of the portfolio as a result of new investment, repayment and exit activities. In addition, changes in the grade of investments may be made to reflect our expectation of performance and changes in investment values.
Results of Operations
Comparison of the Three and Nine Months Ended September 30, 2026 and September 30, 2025
Revenues
Our investment income for the three and nine months ended September 30, 2026 and 2025 was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | Amount | Percentage of Total Income | |||||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 160 | 54.4 | % | $ | 231 | 61.9 | % | $ | 521 | 58.7 | % | $ | 716 | 61.1 | % | ||||||||||||||||||||||||||||||||||
| Paid-in-kind interest income | 46 | 15.6 | % | 54 | 14.5 | % | 126 | 14.2 | % | 169 | 14.4 | % | ||||||||||||||||||||||||||||||||||||||
| Fee income | 4 | 1.4 | % | 4 | 1.1 | % | 11 | 1.2 | % | 30 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||
| Dividend and other income | 84 | 28.6 | % | 84 | 22.5 | % | 230 | 25.9 | % | 256 | 21.9 | % | ||||||||||||||||||||||||||||||||||||||
Total investment income(1) | $ | 294 | 100.0 | % | $ | 373 | 100.0 | % | $ | 888 | 100.0 | % | $ | 1,171 | 100.0 | % | ||||||||||||||||||||||||||||||||||
___________
(1)Such revenues represent $243 and $311 of cash income earned as well as $51 and $62 in non-cash portions relating to accretion of discount and PIK interest for the three months ended September 30, 2026 and 2025, respectively, and $749 and $978 of cash income earned as well as $139 and $193 in non-cash portions relating to accretion of discount and PIK interest for the nine months ended September 30, 2026 and 2025, respectively. Cash flows related to such non-cash revenues may not occur for a number of reporting periods or years after such revenues are recognized.
The level of interest income we receive is generally related to the balance of income-producing investments, multiplied by the weighted average yield of our investments. Fee income is transaction based, and typically consists of amendment and consent fees, prepayment fees, structuring fees and other non-recurring fees. As such, fee income is generally dependent on new direct origination investments and the occurrence of events at existing portfolio companies resulting in such fees.
The decrease in interest and PIK income during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 is primarily attributable to a reduction in the size of our investment portfolio, in addition to the Company placing certain assets on non-accrual status during the three and nine months ended September 30, 2026.
The decrease in dividend income during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is primarily attributable to the decrease in dividends paid in respect to certain equity and asset based finance investments during the nine months ended September 30, 2026. On February 23, 2026, we reduced our equity interests in COPJV to approximately 79% from 87.5%.
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Expenses
Our operating expenses for the three and nine months ended September 30, 2026 and 2025 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Management fees | $ | 42 | $ | 51 | $ | 134 | $ | 156 | ||||||||||||||||||
| Subordinated income incentive fees | 23 | 33 | 71 | 108 | ||||||||||||||||||||||
| Administrative services expenses | 3 | 3 | 8 | 8 | ||||||||||||||||||||||
| Accounting and administrative fees | 1 | 1 | 3 | 3 | ||||||||||||||||||||||
| Interest expense | 99 | 116 | 305 | 354 | ||||||||||||||||||||||
| Other expenses | 9 | 6 | 22 | 19 | ||||||||||||||||||||||
| Total operating expenses | 177 | 210 | 543 | 648 | ||||||||||||||||||||||
| Subordinated income incentive fee waiver | (12) | — | (23) | — | ||||||||||||||||||||||
| Net operating expenses | 165 | 210 | 520 | 648 | ||||||||||||||||||||||
| Excise taxes | 2 | 4 | 2 | 4 | ||||||||||||||||||||||
| Total net expenses, including excise taxes | $ | 167 | $ | 214 | $ | 522 | $ | 652 | ||||||||||||||||||
The decrease in expenses during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 can primarily be attributed to a decrease in management fees and interest expense as a result of the lower asset base and leverage, in addition to the reduction in subordinated income incentive fees as a result of lower investment income as discussed above and the partial waiver of such subordinated income incentive fee (beginning with the fiscal quarter ending June 30, 2026).
The following table reflects selected expense ratios as a percent of average net assets for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Ratio of operating expenses to average net assets | 3.51 | % | 3.45 | % | 10.09 | % | 10.07 | % | ||||||||||||||||||
Ratio of subordinated income incentive fee waiver to average net assets(1) | (0.23) | % | — | (0.43) | % | — | ||||||||||||||||||||
| Ratio of net operating expenses to average net assets | 3.28 | % | 3.45 | % | 9.66 | % | 10.07 | % | ||||||||||||||||||
Ratio of net incentive fees, interest expense and excise taxes to average net assets(1)(2) | 2.20 | % | 2.47 | % | 6.57 | % | 7.20 | % | ||||||||||||||||||
Ratio of net operating expenses, excluding certain expenses, to average net assets(3) | 1.08 | % | 0.98 | % | 3.09 | % | 2.87 | % | ||||||||||||||||||
__________
(1)Ratio data may be rounded in order to recompute the ending ratio of net operating expenses to average net assets or net operating expenses, excluding certain expenses, to average net assets.
(2)Ratio of incentive fees, interest expense and excise taxes to average net assets, excluding the effect of incentive fee waivers, was 2.43% and 7.00% for the three and nine months ended September 30, 2026, respectively. There was no incentive fee waiver in effect for the three and nine months ended September 30, 2025.
(3)Ratio of net operating expenses, excluding certain expenses, to average net assets, excluding the effect of incentive fee waivers, was 1.31% and 3.52% for the three and nine months ended September 30, 2026, respectively.
Incentive fees and interest expense, among other things, may increase or decrease our expense ratios relative to comparative periods depending on portfolio performance and changes in amounts outstanding under our financing arrangements and benchmark interest rates such as SOFR, among other factors.
Net Investment Income
Our net investment income totaled $127 ($0.46 per share) and $159 ($0.57 per share) for the three months ended September 30, 2026 and 2025, respectively. Our net investment income totaled $366 ($1.31 per share) and $519 ($1.86 per share) for the nine months ended September 30, 2026 and 2025, respectively.
The decrease in net investment income during the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 can primarily be attributed to lower investment income during the three and nine months ended September 30, 2026 as discussed above.
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Net Realized Gains or Losses
Our net realized gains (losses) on investments, foreign currency forward contracts and foreign currency for the three and nine months ended September 30, 2026 and 2025 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
Net realized gain (loss) on investments(1) | $ | (126) | $ | (53) | $ | (398) | $ | (206) | ||||||||||||||||||
| Net realized gain (loss) on foreign currency forward contracts | (3) | 0 | (7) | (3) | ||||||||||||||||||||||
| Net realized gain (loss) on foreign currency | (1) | (20) | (10) | (25) | ||||||||||||||||||||||
| Total net realized gain (loss) | $ | (130) | $ | (73) | $ | (415) | $ | (234) | ||||||||||||||||||
______________
(1)We sold investments and received principal repayments, respectively, of $237 and $205 during the three months ended September 30, 2026 and $641 and $705 during the three months ended September 30, 2025. We sold investments and received principal repayments, respectively, of $1,577 and $909 during the nine months ended September 30, 2026 and $2,020 and $2,089 during the nine months ended September 30, 2025.
Net Change in Unrealized Appreciation (Depreciation)
Our net change in unrealized appreciation (depreciation) on investments, foreign currency forward contracts and unrealized gain (loss) on foreign currency for the three and nine months ended September 30, 2026 and 2025 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | $ | 70 | $ | 100 | $ | (385) | $ | (69) | ||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currency forward contracts | 3 | 3 | 11 | (17) | ||||||||||||||||||||||
| Net change in unrealized gain (loss) on foreign currency | 3 | 25 | 23 | (60) | ||||||||||||||||||||||
| Total net change in unrealized appreciation (depreciation) | $ | 76 | $ | 128 | $ | (351) | $ | (146) | ||||||||||||||||||
The net change in unrealized appreciation (depreciation) on investments during the three months ended September 30, 2026 was driven primarily by appreciation on specific assets in the portfolio. The net change in unrealized appreciation (depreciation) on investments during the nine months ended September 30, 2026 was driven primarily by reduced valuations of certain portfolio companies during the nine months ended September 30, 2026, including COPJV, Production Resource Group and Kellermeyer Bergensons Services LLC. The net change in unrealized appreciation (depreciation) on investments during the three months ended September 30, 2025 was driven primarily by appreciation on several specific assets in the portfolio. The net change in unrealized appreciation (depreciation) on investments during the nine months ended September 30, 2025 was driven primarily by reduced valuations of certain portfolio companies during the year, including Production Resource Group, 48Forty Solutions and Kellermeyer Bergensons Services LLC.
Provision for Taxes on Realized Gains on Investments
During the nine months ended September 30, 2026 and 2025, we recorded a provision for taxes on realized gains with respect to one of our equity investments of $0 and $(11), respectively.
Realized Losses from Extinguishment of Debt
During the nine months ended September 30, 2026 and 2025, we recorded a net realized loss from the extinguishment of debt of $(2) and $(3), respectively.
Net Increase (Decrease) in Net Assets Resulting from Operations
For the three months ended September 30, 2026, the net increase in net assets resulting from operations was $73 ($0.27 per share of common stock) compared to a net increase in net assets resulting from operations of $214 ($0.76 per share of common stock) during the three months ended September 30, 2025.
For the nine months ended September 30, 2026, the net decrease in net assets resulting from operations was $(402) ($(1.44) per share of common stock) compared to a net increase in net assets resulting from operations of $125 ($0.45 per share of common stock) during the nine months ended September 30, 2025.
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Distributions to Preferred Stockholders
During the three and nine months ended September 30, 2026, we recorded distributions to preferred stockholders of $2 and $2, respectively.
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders
For the three months ended September 30, 2026, the net increase in net assets resulting from operations applicable to common stockholders was $71 ($0.26 basic and diluted per share of common stock) compared to a net increase in net assets resulting from operations applicable to common stockholders of $214 ($0.76 basic and diluted per share of common stock) during the three months ended September 30, 2025.
For the nine months ended September 30, 2026, the net decrease in net assets resulting from operations applicable to common stockholders was $(404) ($(1.45) basic and diluted per share of common stock) compared to a net increase in net assets resulting from operations applicable to common stockholders of $125 ($0.45 basic and diluted per share of common stock) during the nine months ended September 30, 2025.
Financial Condition, Liquidity and Capital Resources
Overview
As of September 30, 2026, we had $111 in cash, cash equivalents, including money market funds, and foreign currency, which we or our wholly-owned financing subsidiaries held in custodial accounts, and $3,197 in borrowings available under our financing arrangements, subject to borrowing base and other limitations. As of September 30, 2026, we also had broadly syndicated investments and opportunistic investments that could be sold to create additional liquidity. As of September 30, 2026, we had unfunded debt investments with aggregate unfunded commitments of $1,041.1, unfunded equity/other commitments of $70.3 and unfunded commitments of $434.0 to COPJV. We maintain sufficient cash on hand, available borrowings and liquid securities to fund such unfunded commitments should the need arise.
We currently generate cash primarily from cash flows from fees, interest and dividends earned from our investments, as well as principal repayments and proceeds from sales of our investments. We may also fund a portion of our investments through borrowings from banks and issuances of senior securities, including preferred stock, or other financing transactions. Our primary use of cash is investments in portfolio companies, payments of our expenses, including management fees, incentive fees and cost of any borrowings or other financing arrangements, including interest expenses, and the payment of cash distributions or dividends to holders of our common stock and/or preferred stock.
On June 18, 2026, our stockholders approved a proposal to authorize us, with the approval of the Board, to issue warrants, options or rights to subscribe for, convert to, or purchase shares of our common stock in one or more public or private offerings, which may include convertible preferred stock and convertible debentures. In connection with seeking stockholder approval, our management and the Board determined that it would be advantageous for us to have the ability to issue warrants, options or rights to subscribe for, convert to or purchase shares of our common stock in connection with our financing and capital-raising activities. Each issuance of warrants, options or rights to subscribe for, convert to or purchase shares of our common stock pursuant to the stockholder authorization, which has no expiration, will comply with Section 61(a)(4) of the 1940 Act. We do not currently have any plans to issue warrants, options or rights to subscribe for, convert to, or purchase shares of our common stock pursuant to Section 61(a)(4) of the 1940 Act.
Asset Coverage
To seek to enhance our returns, we also employ leverage as market conditions permit and at the discretion of the Adviser, but in no event will leverage employed exceed the maximum amount permitted by the 1940 Act. Prior to June 14, 2019, in accordance with the 1940 Act, we were allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, was at least 200% after such borrowing. Effective June 15, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150%. For purposes of the 1940 Act, “asset coverage” means the ratio of (1) the total assets of a BDC, less all liabilities and indebtedness not represented by senior securities, to (2) the aggregate amount of senior securities representing indebtedness (plus, in the case of senior securities represented by preferred stock, the aggregate involuntary liquidation preference of such BDC’s preferred stock). Under the 1940 Act, any preferred shares we issue, including the Convertible Preferred Stock, will constitute a “senior security” for purposes of the 150% asset coverage test.
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In addition, our ability to pay dividends or distributions (other than dividends payable in our common stock) to holders of any class of our capital stock, or to purchase any such capital stock, would be restricted if our “senior securities representing indebtedness” fail to have an asset coverage of at least 150% (measured at the time of declaration of such distribution or at the time of any such purchase, and accounting for such distribution or purchase price). The 1940 Act does not apply this limitation to privately arranged debt that is not intended to be publicly distributed, unless this limitation is specifically negotiated by the lender. In addition, our ability to pay dividends or distributions (other than dividends payable in our common stock) to our common stockholders, or to purchase any shares of our common stock, would be restricted if our “senior securities that are stock” fail to have an asset coverage of at least 150% (measured at the time of declaration of such distribution, or at the time of any such purchase, and accounting for such distribution or purchase price). If the value of our assets declines, we might be unable to satisfy these asset coverage requirements. To satisfy the 150% asset coverage requirement in the event that we are seeking to pay a distribution, for example, we might either have to (i) liquidate a portion of our portfolio to repay a portion of our indebtedness or (ii) issue common stock. This may occur at a time when a sale of a portfolio asset may be disadvantageous, or when we have limited access to capital markets on agreeable terms. In addition, any amounts that we use to service our indebtedness or outstanding preferred stock, or for offering costs, will not be available for distributions to our stockholders. If we are unable to regain the requisite asset coverage through these methods, we may be forced to suspend the payment of such dividends or distributions. As of September 30, 2026, the aggregate amount outstanding of the senior securities issued by us was $6.5 billion. As of September 30, 2026, our asset coverage on our “senior securities representing indebtedness” was 179% and our asset coverage on our “senior securities that are stock” was 177%. See Note 9 for a discussion of the Company’s financing arrangements.
Prior to investing in securities of portfolio companies, we invest the cash received from fees, interest and dividends earned from our investments and principal repayments and proceeds from sales of our investments primarily in cash, cash equivalents, including money market funds, U.S. government securities, repurchase agreements and high-quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our election to be taxed as a RIC.
Financing Arrangements
The following table presents summary information with respect to our outstanding financing arrangements as of September 30, 2026:
As of September 30, 2026 (Unaudited) | ||||||||||||||||||||||||||||||||
| Arrangement | Type of Arrangement | Rate | Amount Outstanding | Amount Available | Maturity Date | |||||||||||||||||||||||||||
Callowhill Credit Facility(2) | Revolving Credit Facility | SOFR+1.75%(1) | $ | 337 | $ | 63 | June 2, 2030 | |||||||||||||||||||||||||
Senior Secured Revolving Credit Facility(2) | Revolving Credit Facility | SOFR+1.78% - 1.90%(1)(3) | 607(4) | 3,134(5) | July 16, 2030 | |||||||||||||||||||||||||||
2.625% Notes due 2027(6) | Unsecured Notes | 2.63% | 400 | — | January 15, 2027 | |||||||||||||||||||||||||||
3.250% Notes due 2027(6) | Unsecured Notes | 3.25% | 500 | — | July 15, 2027 | |||||||||||||||||||||||||||
3.125% Notes due 2028(6) | Unsecured Notes | 3.13% | 750 | — | October 12, 2028 | |||||||||||||||||||||||||||
7.875% Notes due 2029(6) | Unsecured Notes | 7.88% | 400 | — | January 15, 2029 | |||||||||||||||||||||||||||
6.875% Notes due 2029(6)(7) | Unsecured Notes | 6.88% | 600 | — | August 15, 2029 | |||||||||||||||||||||||||||
6.125% Notes due 2030(6)(7) | Unsecured Notes | 6.13% | 700 | — | January 15, 2030 | |||||||||||||||||||||||||||
6.125% Notes due 2031(6)(7) | Unsecured Notes | 6.13% | 400 | — | January 15, 2031 | |||||||||||||||||||||||||||
7.500% Notes due 2031(6)(7) | Unsecured Notes | 7.50% | 900 | — | August 1, 2031 | |||||||||||||||||||||||||||
CLO-2 Notes(2)(8) | Collateralized Loan Obligation | SOFR+1.48% - 2.15%(1) | 380 | — | April 15, 2037 | |||||||||||||||||||||||||||
CLO-3 Notes(2)(9) | Collateralized Loan Obligation | SOFR+1.47% - 2.10%(1) | 363 | — | January 15, 2038 | |||||||||||||||||||||||||||
Convertible Preferred Stock(10) | Preferred Stock | 5.00% | 150 | — | ||||||||||||||||||||||||||||
| Total | $ | 6,487 | $ | 3,197 | ||||||||||||||||||||||||||||
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(1)The benchmark rate is subject to a 0% floor.
(2)The carrying amount outstanding under the facility approximates its fair value.
(3)The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.10% and 0.0326% is applicable to borrowings in U.S. dollars and pounds sterling, respectively.
(4)Amount includes borrowing in Euros, pounds sterling and Australian dollars. Euro balance outstanding of €351 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.13 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £64 has been converted to U.S dollars at an exchange rate of £1.00 to $1.33 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD6 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.70 as of September 30, 2026 to reflect total amount outstanding in U.S. dollars.
(5)The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of September 30, 2026, $50 of such letters of credit have been issued.
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(6)As of September 30, 2026, the fair value of the 2.625% Notes due 2027, the 3.250% Notes due 2027, the 3.125% Notes due 2028, the 7.875% Notes due 2029, the 6.875% Notes due 2029, the 6.125% Notes due 2030, the 6.125% Notes due 2031 and the 7.500% Notes due 2031 was approximately $396, $486, $698, $404, $588, $690, $381 and $881, respectively. These valuations are considered Level 2 valuations within the fair value hierarchy.
(7)As of September 30, 2026, the carrying values of the 6.875% Notes due 2029, the 6.125% Notes due 2030, the 6.125% Notes due 2031 and the 7.500% Notes due 2031 include a $(12), $(10), $(19) and $(19) increase (decrease), respectively, as a result of an effective hedge accounting relationship. See Note 7 for additional information.
(8)As of September 30, 2026, there were $160.0 of Class A-1 Notes outstanding at SOFR+1.48%, $100.0 of Class A-1L Notes outstanding at SOFR+1.48%, $30.0 of Class A-1W Notes outstanding at SOFR+1.48%, $20.0 of Class A-2L Notes outstanding at SOFR+1.60%, $30.0 of Class B Notes outstanding at SOFR+1.75% and $40.0 of Class C Notes outstanding at SOFR+2.15%.
(9)As of September 30, 2026, there were $125.5 of Class A-1 Notes outstanding at SOFR+1.47%, $150.0 of Class A-1 Senior Floating Rate Loans outstanding at SOFR+1.47%, $19.0 of Class A-2 Notes outstanding at SOFR+1.65%, $35.6 of Class B Notes outstanding at SOFR+1.80% and $33.2 of Class C Notes outstanding at SOFR+2.10%.
(10)The Convertible Preferred Stock pays dividends of 5.00% cash or 7.00% PIK, at the Company’s option, in either case increasing annually by 1.00% per annum beginning on the 5.5-year anniversary of the issue date. See Note 4 for additional information.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the nine months ended September 30, 2026 were $7,104 and 5.72%, respectively. As of September 30, 2026, the Company’s weighted average stated interest rate on borrowings, including the effect of non-usage fees and excluding amortization of deferred financing costs and discounts, was 5.57%.
See Note 9 to our unaudited consolidated financial statements included herein for additional information regarding our financing arrangements.
Equity Issuances
On May 9, 2025, we entered into separate equity distribution agreements, or the Equity Distribution Agreements, with each of Truist Securities, Inc., RBC Capital Markets, LLC, KKR Capital Markets LLC, and SMBC Nikko Securities America, Inc., pursuant to which we may, from time to time, issue and sell up to an aggregate gross amount of $750 million in shares of our common stock through public or at-the-market offerings, or the ATM Program. During the nine months ended September 30, 2026, the Company did not issue or sell shares of its common stock under the ATM Program. For further details regarding the ATM Program and the Equity Distribution Agreements, see “At the Market” Offering” in Note 3 to our unaudited consolidated financial statements included herein.
Convertible Preferred Stock
On June 29, 2026, we issued and sold 6,000,000 shares of the Convertible Preferred Stock to the Purchaser pursuant to the Purchase Agreement, at a price of $25.00 per share. See Note 4 to our unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for more information regarding the Convertible Preferred Stock.
RIC Status and Distributions
We have elected to be subject to tax as a RIC under Subchapter M of the Code. In order to qualify for RIC tax treatment, we must, among other things, make timely distributions of an amount at least equal to 90% of our investment company taxable income, determined without regard to any deduction for distributions paid, each tax year. As long as the distributions are declared by the later of the fifteenth day of the tenth month following the close of a tax year or the due date of the tax return for such tax year, including extensions, distributions paid up to twelve months after the current tax year can be carried back to the prior tax year for determining the distributions paid in such tax year. We intend to make sufficient distributions to our stockholders to qualify for and maintain our RIC tax status each tax year. We are also subject to a 4% nondeductible federal excise tax on certain undistributed income unless we make distributions in a timely manner to our stockholders generally of an amount at least equal to the sum of (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain net income, which is the excess of capital gains in excess of capital losses, or “capital gain net income” (adjusted for certain ordinary losses), for the one-year period ending October 31 of that calendar year and (3) any net ordinary income and capital gain net income for the preceding years that were not distributed during such years and on which we paid no U.S. federal income tax. Any distribution declared by us during October, November or December of any calendar year, payable to stockholders of record on a specified date in such a month and actually paid during January of the following calendar year, will be treated as if it had been paid by us, as well as received by our stockholders, on December 31 of the calendar year in which the distribution was declared. We can offer no assurance that we will achieve results that will permit us to pay any cash distributions. If we issue senior securities, we may be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings.
Subject to applicable legal restrictions and the sole discretion of our Board, we intend to authorize, declare and pay regular cash distributions to our common stockholders on a quarterly basis. We will calculate each stockholder’s specific distribution amount for the period using record and declaration dates and each stockholder’s distributions will begin to accrue on the date that shares of our
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common stock are issued to such stockholder. From time to time, we may also pay to our common stockholders special interim distributions in the form of cash or shares of our common stock at the discretion of our Board.
Holders of the Convertible Preferred Stock are entitled to receive cumulative dividends at an annual rate of 5.00% of the Liquidation Preference per share, computed on the basis of a 360-day year consisting of twelve 30-day months, payable in cash. At our option, dividends may instead be paid at an annual rate of 7.00% of the Liquidation Preference per share in additional shares of Convertible Preferred Stock, or a PIK Dividend, valued at the Liquidation Preference per share; provided that we are prohibited from paying dividends in additional shares if the conversion feature at the time of issuance of such additional shares is equal to or greater than 10.00% of the value of the Convertible Preferred Stock. After the 5.5-year anniversary of the issue date, both the cash dividend rate and the PIK Dividend rate will each increase by 1.00% per annum on each annual anniversary thereafter. Dividends are payable quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, each, a Dividend Payment Date, or, if such date is not a business day, on the next succeeding business day. Dividends are paid to holders of record as of the close of business on the record date designated by the Board for the applicable Dividend Payment Date. Each dividend period begins on and includes a Dividend Payment Date (or, for the initial period, the issue date) and ends on, but excludes, the next succeeding Dividend Payment Date.
The IRS currently requires that a RIC that has two or more classes of stock allocate to each such class proportionate amounts of each type of its income (such as ordinary income and capital gains) based upon the percentage of total dividends paid to each class for the tax year. Accordingly, while the Convertible Preferred Stock is outstanding, we intend to allocate capital gain dividends, if any, between shares of our common stock and preferred stock in proportion to the total dividends paid to each class with respect to such tax year.
During certain periods, our distributions may exceed our earnings. As a result, it is possible that a portion of the distributions we make may represent a return of capital. A return of capital generally is a return of a stockholder’s investment rather than a return of earnings or gains derived from our investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions will be mailed to our stockholders. No portion of the distributions paid during the nine months ended September 30, 2026 or 2025 represented a return of capital.
We intend to make our regular distributions on common stock in the form of cash, out of assets legally available for distribution, except for those stockholders who receive their distributions in the form of shares of our common stock under the DRP. Any distributions reinvested under the plan will nevertheless remain taxable to a stockholder.
The following tables reflect the distributions per share that we have declared on our common stock during the nine months ended September 30, 2026 and 2025:
For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| February 19, 2026 | March 18, 2026 | April 2, 2026 | $ | 0.48 | ||||||||||||||||||||||
| May 6, 2026 | June 17, 2026 | July 2, 2026 | 0.42 | |||||||||||||||||||||||
| August 5, 2026 | September 16, 2026 | October 2, 2026 | 0.44 | |||||||||||||||||||||||
| Total Dividends Declared | $ | 1.34 | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| February 25, 2025 | March 19, 2025 | April 2, 2025 | $ | 0.70 | ||||||||||||||||||||||
| May 5, 2025 | June 18, 2025 | July 2, 2025 | 0.70 | |||||||||||||||||||||||
| July 31, 2025 | September 17, 2025 | October 2, 2025 | 0.70 | |||||||||||||||||||||||
| Total Dividends Declared | $ | 2.10 | ||||||||||||||||||||||||
The following table reflects the dividends per share that we have declared on the Convertible Preferred Stock during the nine months ended September 30, 2026:
For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||
| Date Declared | Record Date | Payment Date | Dividend per Share | |||||||||||||||||||||||
| July 30, 2026 | September 15, 2026 | September 30, 2026 | $ | 0.315972 | ||||||||||||||||||||||
| Total Dividends Declared | $ | 0.315972 | ||||||||||||||||||||||||
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See Note 5 to our unaudited consolidated financial statements included herein for additional information regarding our distributions.
Recent Developments
Common Stock Distribution
On October 7, 2026, our Board of Directors declared a regular quarterly distribution of $0.44 per share, which will be paid on or about December 24, 2026 to common stockholders of record as of the close of business on December 16, 2026. Additionally, on October 7, 2026, the Board of Directors declared a special distribution of $0.20 per share, which will be paid on or about December 15, 2026 to common stockholders of record as of the close of business on December 1, 2026. The timing and amount of any future distributions to common stockholders are subject to applicable legal restrictions and the sole discretion of our Board of Directors.
Convertible Preferred Stock Dividend
On October 28, 2026, our Board of Directors declared a cash dividend on the Convertible Preferred Stock for the period from September 30, 2026 to, but excluding, December 31, 2026 in the amount of $0.3125 per preferred share, which will be paid on or about December 31, 2026 to the holders of record as of the close of business on December 15, 2026.
Issuer Share Repurchases
During the period from October 1, 2026 to October 30, 2026, 2026, we repurchased 1,546,162 shares of common stock pursuant to the Company Share Repurchase Authorization at an average price per share (inclusive of commissions paid) of $10.88 (totaling $17). All such repurchases were made on our behalf by a third-party agent on the open market at prices below net asset value per share in transactions intended to qualify for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act.
Critical Accounting Policies and Estimates
Our financial statements are prepared in conformity with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management utilizes available information, including our past history, industry standards and the current economic environment, among other factors, in forming the estimates and judgments, giving due consideration to materiality. Actual results may differ from these estimates. In addition, other companies may utilize different estimates, which may impact the comparability of our results of operations to those of companies in similar businesses. Understanding our accounting policies and the extent to which we use management judgment and estimates in applying these policies is integral to understanding our financial statements. We describe our most significant accounting policies in “Note 2. Summary of Significant Accounting Policies” in our consolidated financial statements. Critical accounting policies are those that require the application of management’s most difficult, subjective or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. We evaluate our critical accounting estimates and judgments required by our policies on an ongoing basis and update them as necessary based on changing conditions. We have identified one of our accounting policies, valuation of portfolio investments, specifically the valuation of Level 3 investments, as critical because it involves significant judgments and assumptions about highly complex and inherently uncertain matters, and the use of reasonably different estimates and assumptions could have a material impact on our reported results of operations or financial condition. As we execute our operating plans, we will describe additional critical accounting policies in the notes to our future financial statements in addition to those discussed below and in the notes to our consolidated financial statements included herein.
As of September 30, 2026, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 96.68% of our total assets, as compared to 94.76% of our total assets as of December 31, 2025.
Valuation of Portfolio Investments
Our Board is responsible for overseeing the valuation of our portfolio investments at fair value as determined in good faith pursuant to the Adviser’s valuation policy. As permitted by Rule 2a-5 of the 1940 Act, our Board has designated the Adviser as our valuation designee with day-to-day responsibility for implementing the portfolio valuation process set forth in the Adviser’s valuation policy.
ASC Topic 820, Fair Value Measurements and Disclosure, or ASC Topic 820, issued by the FASB clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1,
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defined as observable inputs such as quoted prices in active markets for identical securities; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The Adviser determines the fair value of our investment portfolio each quarter. Securities that are publicly-traded with readily available market prices will be valued at the reported closing price on the valuation date. Securities that are not publicly-traded with readily available market prices will be valued at fair value as determined in good faith by the Adviser, in accordance with valuation policies approved by our Board. In connection with that determination, the Adviser will prepare portfolio company valuations which are based on relevant inputs, including, but not limited to, indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by independent third-party pricing and valuation services.
With respect to investments for which market quotations are not readily available, we undertake a multi-step valuation process each quarter, as described below:
•our quarterly fair valuation process begins by the Adviser facilitating the delivery of updated quarterly financial and other information relating to each investment to an independent third-party pricing or valuation service;
•the independent third-party pricing or valuation service then reviews and analyzes the information, along with relevant market and economic data, and determines proposed valuations for each portfolio company or investment according to the valuation methodologies in the Adviser’s valuation policy and communicates the information to the Adviser in the form of a valuation range for Level 3 assets;
•the Adviser then reviews the preliminary valuation information for each portfolio company or investment and provides feedback about the accuracy, completeness and timeliness of the valuation-related inputs considered by the independent third-party pricing or valuation service and any suggested revisions thereto prior to the independent third-party pricing or valuation service finalizing its valuation range;
•the Adviser then provides the Board’s valuation committee with its valuation determinations and valuation-related information for each portfolio company or investment, along with any applicable supporting materials; and other information that is relevant to the fair valuation process as required by the Adviser’s board reporting obligations;
•the Board’s valuation committee meets with the Adviser to receive the relevant quarterly reporting from the Adviser and to discuss any questions from the valuation committee in connection with the valuation committee’s role in overseeing the fair valuation process; and
•following the completion of its fair value oversight activities, the valuation committee (with the assistance of the Adviser) provides our Board with a report regarding the quarterly valuation process.
In circumstances where the Adviser deems appropriate, the Adviser’s internal valuation team values certain investments. When performing the internal valuations, the Adviser utilizes similar valuation techniques as an independent third-party pricing service would use. Such valuations are approved by an internal valuation committee of the Adviser, with oversight from the valuation committee of the Board, as described above.
Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on our consolidated financial statements. In making its determination of fair value, the Adviser may use any independent third-party pricing or valuation services for which it has performed the appropriate level of due diligence. However, the Adviser is not required to determine fair value in accordance with the valuation provided by any single source, and may use any relevant data, including information sourced by the Adviser or provided by any independent third-party valuation or pricing service that the Adviser deems to be reliable in determining fair value under the circumstances. Below is a description of factors that the Adviser and any independent third-party valuation services may consider when determining the fair value of our investments.
The valuation methods utilized for each portfolio company may vary depending on industry and company-specific considerations. Typically, the first step is to make an assessment as to the enterprise value of the portfolio company’s business in order to establish whether the portfolio company’s enterprise value is greater than the amount of its debt as of the valuation date. This analysis helps to determine a risk profile for the applicable portfolio company and its related investments, and the appropriate valuation methodology to utilize as part of the security valuation analysis. The enterprise valuation may be determined using a market or income approach.
Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Adviser may incorporate these factors into discounted cash
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flow models to arrive at fair value. Various methods may be used to determine the appropriate discount rate in a discounted cash flow model.
Domestic and foreign fixed-income instruments and non-exchange traded derivatives are normally valued on the basis of quotes obtained from brokers and dealers or pricing services using data reflecting the earlier closing of the principal markets for those securities. Bank loans, including senior secured floating rate and fixed-rate loans, are valued by using readily available market quotations or another commercially reasonable method selected by an independent, third-party pricing service that has been engaged by the Adviser, or, if such independent, third-party valuations are not available, by using broker quotations. Senior secured adjustable, variable or floating rate loans for which an active secondary market exists to a reliable degree will be valued at the bid price in the market for such loans, as provided by a loan pricing service. Directly originated loans are valued on an individual loan level. In doing so, the Adviser may engage an independent, third-party valuation agent, and fair valuation of such loans will be performed using inputs that incorporate borrower level data, including significant events affecting the issuer or collateral and market developments. Prices obtained from independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Exchange traded options, futures and options on futures are valued at the settlement price determined by the relevant exchange. The value of swaps, including credit default swaps, total return swaps and interest rate swaps will be determined by obtaining at least one dealer quotation (including information from counterparties) or valuations from third-party pricing services. If no quotations or valuations are available, or if such quotations or valuations are believed to be unreliable, swaps will be fair valued pursuant to procedures adopted by the Adviser and overseen by the Board.
Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the debt investments.
For convertible debt securities, fair value generally approximates the fair value of the debt plus the fair value of an option to purchase the underlying security (i.e., the security into which the debt may convert) at the conversion price. To value such an option, a standard option pricing model may be used.
Our equity interests in portfolio companies for which there is no liquid public market are valued at fair value. Generally, the value of our equity interests in public companies for which market quotations are readily available is based upon the most recent closing public market price. Portfolio securities that carry certain restrictions on sale are typically valued at a discount from the public market value of the security. The Adviser will normally use pricing data for domestic or foreign equity securities received shortly after the close of the primary securities exchange on which such securities trade and does not normally take into account trading, clearances or settlements that take place after the close of the exchange.
When we receive warrants or other equity securities at nominal or no additional cost in connection with an investment in a debt security, the cost basis in the investment will be allocated between the debt securities and any such warrants or other equity securities received at the time of origination. The Adviser subsequently values these warrants or other equity securities received at their fair value.
See Note 8 to our unaudited consolidated financial statements included herein for additional information regarding the fair value of our financial instruments.
Other Contractual Obligations
We have entered into agreements with the Adviser to provide us with investment advisory and administrative services. Payments for investment advisory services under the Advisory Agreement are equal to (a) an annual base management fee based on the average weekly value of our gross assets (excluding cash and cash equivalents) and (b) an incentive fee based on our performance. The Adviser is reimbursed for administrative expenses incurred on our behalf. See Note 4 to our unaudited consolidated financial statements included herein for a discussion of these agreements and for the amount of fees and expenses accrued under these agreements during the nine months ended September 30, 2026 and 2025.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Interest Rate Risk
We are subject to financial market risks, including changes in interest rates. As of September 30, 2026, 60.1% of our portfolio investments (based on fair value) were debt investments paying variable interest rates and 9.5% were debt investments paying fixed interest rates while 19.2% were other income producing investments, 7.8% consisted of non-income producing investments, and the remaining 3.4% consisted of investments on non-accrual status. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to any variable rate investments we hold and to declines in the value of any fixed rate investments we hold. However, many of our variable rate investments provide for an interest rate floor, which may prevent our interest income from
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increasing until benchmark interest rates increase beyond a threshold amount. To the extent that a substantial portion of our investments may be in variable rate investments, an increase in interest rates beyond this threshold would make it easier for us to meet or exceed the hurdle rate applicable to the subordinated income incentive fee, and may result in a substantial increase in our net investment income and to the amount of incentive fees payable to the Adviser with respect to our increased pre-incentive fee net investment income. A prolonged reduction in interest rates could reduce our gross investment income and could result in a decrease in our net investment income if such decreases in interest rates are not offset by a corresponding increase in the spread over the reference rate that we earn on any portfolio investments, a decrease in our operating expenses or a decrease in the interest rate of our floating interest rate liabilities. Changes in the general level of interest rates can affect our net interest income. Changes in interest rates can also affect, among other things, our ability to acquire leveraged loans, high yield bonds and other debt investments and the value of our investment portfolio.
Pursuant to the terms of the Callowhill Credit Facility, Senior Secured Revolving Credit Facility, the CLO-2 Notes and the CLO-3 Notes, we borrow at a floating rate based on a benchmark interest rate. Under the indentures governing the 2.625% Notes due 2027, the 3.250% Notes due 2027, the 3.125% Notes due 2028, the 7.875% Notes due 2029, the 6.875% Notes due 2029, the 6.125% Notes due 2030, the 6.125% Notes due 2031 and the 7.500% Notes due 2031, we pay interest to the holders of such notes at a fixed rate, except that the 6.875% Notes due 2029, the 6.125% Notes due 2030, the 6.125% Notes due 2031 and the 7.500% Notes due 2031 have been swapped from a fixed rate to a floating rate through interest rate swaps. Pursuant to the terms of the Articles Supplementary, we pay the holders of the Convertible Preferred Stock a fixed rate dividend. To the extent that any present or future credit facilities or other financing arrangements that we or any of our subsidiaries enter into are based on a floating interest rate, we will be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we or our subsidiaries have such debt outstanding, or financing arrangements in effect, our interest expense would increase, which could reduce our net investment income, especially to the extent we hold fixed rate investments.
The following table shows the effect over a twelve month period of changes in interest rates on our interest income, interest expense and net interest income, assuming no changes in the composition of our investment portfolio, including the accrual status of our investments, and our financing arrangements in effect as of September 30, 2026 (dollar amounts are presented in millions):
| Basis Point Change in Interest Rates | Increase (Decrease) in Interest Income(1) | Increase (Decrease) in Interest Expense(2) | Increase (Decrease) in Net Interest Income | Percentage Change in Net Interest Income | ||||||||||||||||||||||
| Down 250 basis points | $ | (176) | $ | (108) | $ | (68) | (15.5) | % | ||||||||||||||||||
| Down 200 basis points | (141) | (87) | (54) | (12.3) | % | |||||||||||||||||||||
| Down 150 basis points | (106) | (65) | (41) | (9.3) | % | |||||||||||||||||||||
| Down 100 basis points | (70) | (43) | (27) | (6.2) | % | |||||||||||||||||||||
| Down 50 basis points | (35) | (22) | (13) | (3.0) | % | |||||||||||||||||||||
| Up 50 basis points | 35 | 22 | 13 | 3.0 | % | |||||||||||||||||||||
| Up 100 basis points | 70 | 43 | 27 | 6.2 | % | |||||||||||||||||||||
| Up 150 basis points | 106 | 65 | 41 | 9.3 | % | |||||||||||||||||||||
| Up 200 basis points | 141 | 87 | 54 | 12.3 | % | |||||||||||||||||||||
| Up 250 basis points | 176 | 108 | 68 | 15.5 | % | |||||||||||||||||||||
_______________
(1)Assumes no defaults or prepayments by portfolio companies over the next twelve months.
(2)Assumes current debt outstanding as of September 30, 2026, and no changes over the next twelve months. Includes the effect of interest rate swaps designed as hedging instruments.
We expect that our long-term investments will be financed primarily with equity and debt. If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. To hedge the risks associated with a changing interest rate environment, the Company utilizes interest rate swap strategies. For more information on the Company’s swap strategies, please see Note 2 and Note 7 to our unaudited consolidated financial statements included herein.
Foreign Currency Risk
From time to time, we may make investments that are denominated in a foreign currency that are subject to the effects of exchange rate movements between the foreign currency of each such investment and the U.S. dollar, which may affect future fair values and cash flows, as well as amounts translated into U.S. dollars for inclusion in our consolidated financial statements.
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The table below presents the effect that a 10% immediate, unfavorable change in the foreign currency exchange rates (i.e. strengthening of the U.S. dollar) would have on the fair value of our investments denominated in foreign currencies as of September 30, 2026, by foreign currency, all other valuation assumptions remaining constant. In addition, the table below presents the par value of our investments denominated in foreign currencies and the notional amount of foreign currency forward contracts in local currency in place as of September 30, 2026 to hedge against foreign currency risks.
Investments Denominated in Foreign Currencies As of September 30, 2026 | Economic Hedging As of September 30, 2026 | |||||||||||||||||||||||||||||||||||||
| Cost in Local Currency | Cost in US$ | Fair Value | Reduction in Fair Value as of September 30, 2026 if 10% Adverse Change in Exchange Rate(1) | Net Foreign Currency Hedge Amount in Local Currency | Net Foreign Currency Hedge Amount in U.S. Dollars | |||||||||||||||||||||||||||||||||
| Australian Dollars | A$ | 5.5 | $ | 3.8 | $ | 4.3 | $ | 0.4 | A$ | 0.6 | $ | 0.4 | ||||||||||||||||||||||||||
| British Pound Sterling | £ | 131.0 | 173.8 | 178.2 | 17.8 | £ | 131.0 | 173.8 | ||||||||||||||||||||||||||||||
| Euros | € | 337.0 | 382.3 | 359.4 | 35.9 | € | 11.4 | 12.9 | ||||||||||||||||||||||||||||||
| Swedish Krona | SEK | 1,172.8 | 117.3 | 82.6 | 8.3 | SEK | 497.6 | 49.9 | ||||||||||||||||||||||||||||||
| Total | $ | 677.2 | $ | 624.5 | $ | 62.4 | $ | 237.0 | ||||||||||||||||||||||||||||||
_______________
(1)Excludes effect, if any, of any foreign currency hedges.
As illustrated in the table above, we use derivative instruments from time to time, including foreign currency forward contracts and cross currency swaps, to manage the impact of fluctuations in foreign currency exchange rates. In addition, we have the ability to borrow in foreign currencies under our Senior Secured Revolving Credit Facility and Callowhill Credit Facility, which provides a natural hedge with regard to changes in exchange rates between the foreign currencies and U.S. dollar and reduces our exposure to foreign exchange rate differences. We are typically a net receiver of these foreign currencies as related for our international investment positions, and, as a result, our investments denominated in foreign currencies, to the extent not hedged, benefit from a weaker U.S. dollar and are adversely affected by a stronger U.S. dollar.
As of September 30, 2026, the net contractual amount of our foreign currency forward contracts totaled $238.9, all of which related to hedging of our foreign currency denominated debt investments. As of September 30, 2026, we had outstanding borrowings denominated in foreign currencies of €351, £64 and A$6 under our Senior Secured Revolving Credit Facility.
In addition, we may have risk regarding portfolio valuation. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Valuation of Portfolio Investments.”
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Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
As required by Rule 13a-15(b) under the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our management, including the chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2026.
Based on the foregoing, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that we would meet our disclosure obligations.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the three month period ended September 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
See “Note 10. Commitments and Contingencies — Litigation” to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Other than as set forth in “Note 10. Commitments and Contingencies — Litigation” to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, neither we, the Adviser, nor our subsidiaries are currently subject to any material pending legal proceedings, other than ordinary routine litigation incidental to our businesses. We, the Adviser, and our subsidiaries may from time to time, however, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending or future legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.
Item 1A. Risk Factors.
Investors should carefully consider the risks referenced below and all other information contained in this Quarterly Report on Form 10-Q, including our interim financial statements and the related notes thereto, before making a decision to purchase our securities. Any such risks and uncertainties are not the only ones facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may have a material adverse effect on our business, financial condition and/or operating results, as well as the market price of our securities.
In addition to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 (filed with the SEC on February 25, 2026) and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (filed with the SEC on August 6, 2026), the following risk factors may materially affect our business, financial condition and/or operating results, as well as the market price of our securities.
We may be subject to risks associated with our investments in unitranche loans.
We originate and invest in unitranche loans, which combine characteristics of first lien, second lien and, in some cases, subordinated or mezzanine debt, generally within a single credit facility. In certain unitranche investments, another lender may hold the “first out” portion of the loan while we retain the “last out” portion, or we may otherwise structure a unitranche loan to provide for a waterfall of cash flow priority among lenders. Where a loan is structured in this manner, the “first out” tranche will generally receive priority with respect to payments of principal, interest and any other amounts due under the loan, while the “last out” tranche we hold is generally paid only after the “first out” tranche has been paid in full. In exchange for assuming this increased risk of loss, we typically expect to earn a higher effective yield on the “last out” portion than is earned on the “first out” portion or on a traditional first lien loan. The rights we may have with respect to the collateral securing a unitranche loan, including the ability to control enforcement remedies following a default, may also be limited under the agreement among lenders or similar arrangement governing the loan, and the holders of the “first out” tranche may be able to control such remedies even where our interests as the “last out” lender are adversely affected.
Unitranche loans may also rank junior to other debt instruments of the portfolio company and may provide for a significant portion of principal to be repaid in a lump sum at maturity, which increases the risk of loss if the portfolio company is unable to repay or refinance that amount when due. As a result of these features, our unitranche loan investments may involve a greater risk of loss than investments in more senior, traditionally structured first lien loans, and any such losses could have a material adverse effect on our business, financial condition and results of operations.
We and the Adviser could be the target of litigation, and extensive regulation of the Adviser’s and its affiliates’ business may impede its ability to effectively manage our portfolio companies, which could materially and adversely affect our business.
We and the Adviser have become, and could in the future become, the target of securities class action litigation or other similar claims, including if the market price of our common stock fluctuates significantly or for other reasons. The proceedings could continue without resolution for long periods of time and the outcome of any such proceedings could materially adversely affect our business, financial condition, and/or operating results. Any litigation or other similar claims could consume substantial amounts of our management’s time and attention, and that time and attention and the devotion of associated resources could, at times, be disproportionate to the amounts at stake. Litigation and other claims are subject to inherent uncertainties, and a material adverse impact on our financial statements could occur for the period in which the effect of an unfavorable final outcome in litigation or other similar claims becomes probable and reasonably estimable. In addition, we could incur expenses associated with defending ourselves against litigation and other similar claims, and these expenses could be material to our earnings in future periods. See also “Note 10.
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Commitments and Contingencies — Litigation” to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
In addition, the Adviser’s and its affiliates’ business is subject to extensive regulation, legislative focus and regulatory scrutiny, and their respective compliance with laws and regulations is subject to frequent examinations, inquiries and investigations by U.S. federal and state as well as non-U.S. governmental agencies and regulators and self-regulatory organizations in the various jurisdictions in which the Adviser and/or its affiliates operate around the world.
Any of these governmental and regulatory authorities may challenge the Adviser’s, its affiliates’ and their respective employees’ compliance with any applicable laws and regulations, and the Adviser, its affiliates and its employees could become subject to civil or criminal proceedings or other sanctions brought by them for such noncompliance.
For instance, on January 14, 2025, the Antitrust Division of the U.S. Department of Justice, or the DOJ, filed a civil antitrust complaint, or the DOJ Complaint, in the U.S. District Court for the Southern District of New York against KKR & Co. and various KKR-sponsored investment entities, or the KKR Defendants, alleging violations of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, or the HSR Act. The DOJ Complaint requests various relief for the alleged violations of the HSR Act by the KKR Defendants, including civil penalties in an amount to be determined and various equitable relief, including disgorgement and enjoining future violations of the HSR Act. On January 14, 2025, KKR & Co. and its subsidiaries filed a complaint, or the KKR Complaint, in the U.S. District Court for the District of Columbia against Doha Mekki in her official capacity as Acting Assistant Attorney General of the United States for the Antitrust Division, the DOJ, the Federal Trade Commission, or the FTC, and the United States of America pertaining to the HSR-related investigations conducted by the DOJ. On January 16, 2025, KKR & Co. voluntarily dismissed the KKR Complaint filed in the U.S. District Court for the District of Columbia and re-filed it in the U.S. District Court for the Southern District of New York as related to the DOJ Complaint. The KKR Complaint requests various forms of relief, including declaratory judgments that: (i) KKR & Co. did not violate the HSR Act; (ii) the DOJ’s and FTC’s interpretations of the HSR Act are unconstitutionally vague; and (iii) the DOJ seeks an excessive fine in violation of the U.S. Constitution. KKR & Co. filed a motion to dismiss the DOJ Complaint on April 17, 2025. The DOJ filed its motion to dismiss the KKR Complaint on April 23, 2025, and KKR & Co. and the DOJ agreed to dismiss one count of the KKR Complaint and to stay the rest of the DOJ’s motion to dismiss pending resolution of KKR & Co.’s motion to dismiss the DOJ Complaint. On August 26, 2026, KKR & Co. entered into a Stipulation and Order (the “Stipulation”) with the DOJ to resolve the DOJ Complaint. Pursuant to the Stipulation and contingent on a proposed final judgment becoming effective, the DOJ would release all defendants from claims made in the DOJ Complaint, and KKR & Co. would pay $250.0 million to the DOJ. Additionally, the DOJ notified KKR & Co. that it has terminated all of its related investigations against KKR & Co. and its affiliates. The Stipulation and a proposed final judgment were filed with the U.S. District Court for the Southern District of New York on August 26, 2026. The proposed final judgment is subject to judicial approval under the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16, for the limited purpose of determining whether the proposed final judgment is in the public interest. In addition, KKR & Co. is currently, and may from time to time become, subject to other investigations by the Antitrust Division of the DOJ and other U.S. or non-U.S. governmental authorities related to antitrust matters.
Any resolution of claims brought by a governmental and regulatory authority may also require an admission of wrongdoing or result in adverse limitations or prohibitions on the Adviser’s ability to conduct its business. In addition, the adverse publicity, costs relating to legal defenses, and reputational harm relating to the regulatory activity or imposition of these sanctions could be significant.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Equity Securities Issuances
The Company did not sell any equity securities during the fiscal quarter ended September 30, 2026 that were not registered under the Securities Act.
Share Repurchase Program
On May 6, 2026, the Board approved the Company Share Repurchase Authorization, which authorizes the repurchase by the Company of up to $300.0 million in aggregate amount of the Company’s common stock in the open market, by tender offer or in privately negotiated purchases in compliance with the Exchange Act and other applicable law. The Company Share Repurchase Authorization is scheduled to expire on June 1, 2027, unless extended, or until the aggregate repurchase amount that has been approved by the Board has been expended. The timing, manner, price and amount of any share repurchases will be determined by the Company based upon the evaluation of economic and market conditions, the market price of the shares, applicable legal, contractual and regulatory requirements and other factors. The Company Share Repurchase Authorization does not require the Company to repurchase any specific number of shares of the Company’s common stock and the Company cannot assure its stockholders that any shares will be repurchased under the program. The Company Share Repurchase Authorization may be suspended, extended, modified or discontinued at any time.
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During the nine months ended September 30, 2026, the Company repurchased 6,533,672 shares of common stock pursuant to the Company Share Repurchase Authorization at an average price per share (inclusive of commissions paid) of $11.20 (totaling $73). All such repurchases were made on the Company’s behalf by a third-party agent on the open market at prices below net asset value per share in transactions intended to qualify for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act.
The table below provides information concerning purchases of our shares of common stock by or on behalf of the Company or any “affiliated purchaser,” as defined by Rule 10b-18(a)(3) promulgated under the Exchange Act during the quarterly period ended September 30, 2026. Dollar amounts in the table below and the related notes are presented in millions, except for share and per share amounts.
| Period | Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
| July 1, 2026 through July 31, 2026 | 3,348,353 | $ | 10.75 | 3,348,353 | $ | 260 | ||||||||||||||||||||
| August 1, 2026 through August 31, 2026 | 609,769 | 12.20 | 609,769 | $ | 253 | |||||||||||||||||||||
| September 1, 2026 through September 30, 2026 | 2,197,750 | 11.71 | 2,197,750 | $ | 227 | |||||||||||||||||||||
| 6,155,872 | $ | 11.24 | 6,155,872 | |||||||||||||||||||||||
___________
(1)Amount includes commissions paid.
(2)Includes amounts pursuant to the Company Share Repurchase Authorization.
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Rule 10b5-1 Trading Plans
During the fiscal quarter ended September 30, 2026, none of our directors or officers adopted terminated
Price Range of Common Stock
Our common stock is traded on the NYSE under the symbol “FSK”. The following table sets forth, for each fiscal quarter during the last two full fiscal years and the current fiscal year to date: (i) the net asset value per share of our common stock, (ii) the range of high and low closing sales prices of our common stock as reported on the NYSE, and (iii) the closing high and low sales prices as a premium (discount) to net asset value during the appropriate period.
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| Closing Sales Price | Premium / (Discount) of High Sales Price to NAV(2) | Premium / (Discount) of Low Sales Price to NAV(2) | ||||||||||||||||||||||||||||||
| For the Three Months Ended (unless otherwise indicated) | NAV per Share(1) | High | Low | |||||||||||||||||||||||||||||
Fiscal Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| March 31, 2024 | $ | 24.32 | $ | 20.89 | $ | 18.36 | (14.10) | % | (24.51) | % | ||||||||||||||||||||||
| June 30, 2024 | 23.95 | 20.71 | 18.82 | (13.53) | % | (21.42) | % | |||||||||||||||||||||||||
| September 30, 2024 | 23.82 | 20.43 | 18.74 | (14.23) | % | (21.33) | % | |||||||||||||||||||||||||
| December 31, 2024 | 23.64 | 22.22 | 19.71 | (6.01) | % | (16.62) | % | |||||||||||||||||||||||||
Fiscal Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| March 31, 2025 | 23.37 | 24.06 | 20.47 | 2.95 | % | (12.41) | % | |||||||||||||||||||||||||
| June 30, 2025 | 21.93 | 21.50 | 17.95 | (1.96) | % | (18.15) | % | |||||||||||||||||||||||||
| September 30, 2025 | 21.99 | 22.48 | 14.93 | 2.23 | % | (32.11) | % | |||||||||||||||||||||||||
| December 31, 2025 | 20.89 | 16.13 | 14.16 | (22.79) | % | (32.22) | % | |||||||||||||||||||||||||
Fiscal Year Ending December 31, 2026 | ||||||||||||||||||||||||||||||||
| March 31, 2026 | 18.83 | 14.93 | 9.91 | (20.71) | % | (47.37) | % | |||||||||||||||||||||||||
| June 30, 2026 | 18.30 | 11.62 | 10.04 | (36.50) | % | (45.14) | % | |||||||||||||||||||||||||
| September 30, 2026 | 18.28 | 12.64 | 10.33 | (30.85) | % | (43.49) | % | |||||||||||||||||||||||||
Fourth Quarter of 2026 (through October 30, 2026) | N/A* | 11.17 | 10.08 | N/A* | N/A* | |||||||||||||||||||||||||||
___________
(1)Net asset value per share is determined as of the last day in the relevant period and therefore may not reflect the net asset value per share on the date of the high and low closing sales prices. The net asset values shown are based on outstanding shares at the end of the relevant period.
(2)Calculated as of the respective high or low closing sales price divided by the quarter end net asset value and subtracting 1.
* Not determinable at the time of filing.
On October 30, 2026, the last reported closing sales price of our common stock on the NYSE was $11.03 per share. As of October 30, 2026, we had 6,815 record holders of our common stock which does not include beneficial owners of shares of common stock held in “street name” by brokers and other institutions on behalf of stockholders.
Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that shares of our common stock will trade at a discount from NAV or at premiums that are unsustainable over the long term are separate and distinct from the risk that our NAV will decrease. It is not possible to predict whether our shares will trade at, above or below NAV.
Fees and Expenses
The information in the following table is being provided to update, as of September 30, 2026, certain information in the Company’s effective shelf registration statement on Form N-2 (File No. 333-282226), which became effective automatically upon filing with the SEC on September 19, 2024, as supplemented by the prospectus supplement relating to our ATM Program (as defined in “At the Market” Offering” in Note 3 to our consolidated financial statements included herein), dated May 9, 2025, as may be further amended and supplemented from time to time. The information is intended to assist stockholders in understanding the costs and expenses that an investor in our common stock will bear directly or indirectly. We caution stockholders that some of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Quarterly Report on Form 10-Q, or any filing under the Securities Act into which this Quarterly Report on Form 10-Q is incorporated by reference, contains a reference to fees or expenses paid by “you,” “us” or “the Company,” or that “we” will pay fees or expenses, our stockholders will indirectly bear such fees or expenses as investors in us.
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Except as noted below, the following annualized percentages were calculated based on actual expenses incurred in the nine months ended September 30, 2026 and net assets as of September 30, 2026, and do not include events occurring subsequent thereto. The table and examples below include all fees and expenses of our consolidated subsidiaries.
Stockholder Transaction Expenses (as a percentage of offering price) | ||||||||
Sales load or other commission payable by us(1) | — | |||||||
Offering expenses(2) | — | |||||||
Distribution reinvestment plan expenses(3) | None | |||||||
| Total stockholder expenses | — | |||||||
Annual expenses (as a percentage of net assets attributable to common stock)(4) | ||||||||
Base management fee(5) | 3.31 | % | ||||||
Incentive fees payable under the Advisory Agreement(6) | 1.75 | % | ||||||
Interest payments on borrowed funds(7) | 9.83 | % | ||||||
Other expenses(8) | 1.19 | % | ||||||
Acquired fund fees and expenses(9) | 2.34 | % | ||||||
Total annual expenses(10) | 18.42 | % | ||||||
Distributions to preferred stockholders(11) | 0.05 | % | ||||||
Total annual expenses after distributions to preferred stockholders | 18.47 | % | ||||||
________________
(1)The amounts set forth in this table do not reflect the impact of any sales load, sales commission or other offering expenses borne by us and our stockholders. The maximum agent commission with respect to the shares of our common stock sold by us in the ATM Program is 1.50% of gross proceeds. In the event that securities are sold to or through underwriters or agents, a corresponding prospectus or prospectus supplement will disclose the applicable sales load or commission.
(2)The prospectus supplement corresponding to each offering will disclose the applicable estimated amount of offering expenses, the offering price and the offering expenses borne by us as a percentage of the offering price.
(3)The estimated expenses associated with our distribution reinvestment plan are included in “Other expenses.” See Note 3 to the notes to our consolidated financial statements for more information.
(4)“Net assets attributable to common stock” equals our average net assets of $5.4 billion as of September 30, 2026.
(5)Our base management fee under the Advisory Agreement is payable quarterly in arrears and is calculated at an annual rate of 1.50% of the average weekly value of our gross assets (excluding cash and cash equivalents), which are assumed to equal 235% of our average net assets as described in footnote 4 above. To the extent our gross assets financed by leverage exceed 1.0x debt-to-equity, the excess amount of gross assets are calculated at rate of 1.00%. The base management fee shown in the table above is higher than 1.50% because the base management fee in the table is required to be calculated as a percentage of our average net assets, rather than gross assets.
(6)The incentive fee in the Advisory Agreement consists of two parts. The first part of the incentive fee, which is referred to as the subordinated income incentive fee, will be calculated and payable quarterly in arrears, will equal 17.5% of our “pre-incentive fee net investment income” for the immediately preceding quarter and will be subject to a hurdle rate, expressed as a rate of return on our net assets, equal to 1.75% per quarter, or an annualized hurdle rate of 7.0%. The amount in the table above assumes that the subordinated income incentive fee will be 1.75% of average net assets. This figure is based on the subordinated income incentive fees accrued for the quarter ended September 30, 2026 recalculated based on the base management fee and incentive fee in the Advisory Agreement, and assumes that such amount represents the subordinated income incentive fees that will be payable over the twelve months following September 30, 2026. The actual subordinated income incentive fee as a percentage of our average net assets may be higher than this amount. The second part of the incentive fee, which is referred to as the incentive fee on capital gains, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement). This fee equals 20.0% of our incentive fee capital gains, which equals our realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. The amount in the table assumes that there is no incentive fee on capital gains and is based on the net unrealized depreciation as of September 30, 2026. Such amounts are expressed as a percentage of the average net assets as of such date. The Adviser has agreed to waive 50% of the subordinated income incentive fee during the Waiver Period, which is not reflected in the above table.
(7)See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition, Liquidity and Capital Resources” for a discussion of our financing arrangements. The calculation assumes the following based on results of operations for the nine months ended September 30, 2026: (i) $14.9 billion in total assets, (ii) a weighted average stated interest rate on borrowings of 5.57%, (iii) $9.5 billion in debt outstanding (i.e., assumes that the maximum amount of available borrowings under our current debt facilities that we are permitted under the 1940 Act minimum asset coverage requirement is outstanding as of ) and (iv) $5.0 billion in stockholders’ equity.
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(8)Other expenses include accounting, legal and auditing fees and excise and state taxes, as well as the reimbursement of the compensation of administrative personnel and fees payable to our directors who do not also serve in an executive officer capacity for us or the Adviser. The amount presented in the table reflects annualized results of our operations for the quarter ended September 30, 2026.
(9)Stockholders indirectly bear the expenses of underlying funds or other investment vehicles in which we invest that (1) are investment companies or (2) would be investment companies under section 3(a) of the 1940 Act but for the exceptions to that definition provided for in sections 3(c)(1) and 3(c)(7) of the 1940 Act. This amount includes the fees and expenses of COPJV, our joint venture with SCRS. The amount shown is the expense ratio of COPJV for the quarter ended September 30, 2026 and multiplied by the value of the Company’s holding of COPJV as of September 30, 2026, divided by the Company’s net assets as of September 30, 2026.
(10)“Total annual expenses” as a percentage of net assets attributable to common stock are higher than the total annual expenses percentage would be for a company that is not leveraged. We borrow money to leverage our net assets and increase our total assets. The SEC requires that the “total annual expenses” percentage be calculated as a percentage of net assets (defined as total assets less indebtedness), rather than the total assets, including assets that have been funded with borrowed monies. If the “total annual expenses” percentage were calculated instead as a percentage of total assets, our “total annual expenses” would be 7.82% of total assets.
(11)Based on the 5.00% per annum dividend rate applicable to the Convertible Preferred Stock.
Example
The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed we would have no additional leverage and that our annual operating expenses would remain at the levels set forth in the table above. Transaction expenses are not included in the following example.
| 1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||||||||||||
You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return (none of which is subject to our incentive fee on capital gains)(1) | $ | 157 | $ | 419 | $ | 623 | $ | 957 | ||||||||||||||||||
| You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return resulting entirely from net realized capital gains (all of which is subject to our incentive fee on capital gains) | $ | 166 | $ | 437 | $ | 644 | $ | 970 | ||||||||||||||||||
________________
(1)Assumes no return from net realized capital gains or net unrealized capital appreciation.
The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. Because the example assumes, as required by the SEC, a 5.0% annual return, no subordinated income incentive fee would be accrued and payable in any of the indicated time periods. Our performance will vary and may result in a return greater or less than 5.0%. If we achieve sufficient returns on our investments, including through the realization of capital gains, to trigger an incentive fee of a material amount, our expenses, and returns to our investors, would be higher. In addition, while the example assumes reinvestment of all distributions on common stock at net asset value, reinvestment of distributions under our common stock distribution reinvestment plan may occur at a price per share that differs from the then-current net asset value per share. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—RIC Status and Distributions” and Note 5 to our consolidated financial statements contained in this Quarterly Report on Form 10-Q for additional information regarding our distributions and our distribution reinvestment plan.
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Item 6. Exhibits
| 31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended. | |||||||
| 31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended. | |||||||
| 32.1* | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
| 101.INS* | Inline XBRL Instance Document | |||||||
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
*Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized on November 5, 2026.
| FS KKR CAPITAL CORP. | |||||
By: | /s/ Michael C. Forman | ||||
Michael C. Forman Chief Executive Officer (Principal Executive Officer) | |||||
By: | /s/ Steven Lilly | ||||
Steven Lilly Chief Financial Officer (Principal Financial Officer) | |||||
By: | /s/ William Goebel | ||||
| William Goebel Chief Accounting Officer | |||||
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