FS Investments, Portfolio Advisors Create $73B Alternatives Manager with Merger

Alternative assets manager FS Investments and middle-market private asset firm Portfolio Advisors will merge to create a combined $73 billion alternative assets investment firm.

Terms of the transaction were not made available. The deal is expected to close in the first half of 2023. Upon completion, Portfolio Advisors will become FS Investments’ institutional investment arm.

The combined firm will invest across alternative asset classes and strategies, including private equity, private and liquid credit, private real estate and liquid alternatives.

With the deal for Portfolio Advisors, FS Investments also gets its private equity fund that targets both wealth management and institutional clients.

FS Investments’ and Portfolio Advisors’ executives will have representation on senior leadership committees across both organizations.

“I am thrilled to join forces with Portfolio Advisors and applaud our team, led by our Co-Presidents, Enrico Gaglioti and Mike Kelly, for identifying an ideal strategic partner,” said Michael Forman, Chairman and CEO of FS Investments.

“This combination presents a unique opportunity to expand our reach, launch new strategies and drive growth while providing continuity for our first-rate investment teams and institutional clients,” added Brian Murphy, Co-Founder of Portfolio Advisors.

UBS Investment Bank served as lead financial advisor and Cravath, Swaine & Moore LLP served as primary legal advisor to FS Investments on the transaction. Moelis & Company LLC served as financial advisor and Simpson Thacher & Bartlett LLP served as legal advisor to Portfolio Advisors.