FS Specialty Lending Fund is a non-traded BDC that lends to private U.S. companies, with the goal of generating current income for shareholders. The Fund invests primarily in debt instruments — senior secured loans, second lien loans, and unsecured bonds — through two channels: direct originations to middle market companies, including non-traditional borrowers such as businesses in transition or distressed situations, and purchases of broadly syndicated loans and bonds in public credit markets to exploit pricing inefficiencies or event-driven situations. The Fund recently pivoted away from a pure energy-sector focus toward a diversified, cross-sector credit strategy; the legacy energy portfolio is being wound down as new capital is deployed across a broader range of industries. The Fund earns returns through interest income on its loan portfolio, capital gains from buying syndicated credit at a discount, equity upside from warrants and co-investments, and origination and structuring fees. Leverage amplifies net investment income by borrowing at lower rates and deploying into higher-yielding assets, subject to BDC regulations requiring at least 150% asset coverage. The Fund is externally managed by FS/EIG Advisor, a joint venture between FS Investments and EIG Asset Management, and pays both a base management fee and a performance-based incentive fee to the manager. As a regulated investment company, the Fund distributes at least 90% of investment income to shareholders as dividends to avoid corporate-level tax.