FS Investment Solutions, FS Energy & Power Fund —also known as the Franklin Square Energy & Power Fund — is a non-traded business development company (non-traded BDC). Non-Traded BDCs invest in the debt and equity securities of private energy and power companies typically involving different kinds of power such as crude oil or natural gas. FS Energy & Power Fund is an illiquid, high-risk investment.

Non-traded BDCs like FS Energy & Power Fund charge high commissions, which incentives broker-dealers and their financial advisors looking to make a quick buck to recommend such funds to customers, even if they are unsuitable for their investing goals. FS Energy & Power Fund charges investors more than 11% in upfront commissions and fees. This means that just 88.5% of their money went to the actual investment. Just to break even, investors would have needed to make a 13% return. On top of the commissions, certain yearly expenses also may have been charged to investors, making it even more difficult for any FS Energy & Power Fund investors to make money even if there were positive returns.

Additionally, FS Energy & Power Fund began as a “blind pool”, meaning that the Fund had not yet contracted or even researched any investments to make with investor funds when investors started buying share. Without this information it would be impossible to give investors an accurate assessment of both the true risks involved and their actual chances of making money.

Many FS Energy & Power Fund investors have sustained significant investment losses due to their financial advisors or stockbrokers making misrepresentations and omissions when marketing FS Energy & Power Fund to them or failing to fully apprise them of the risks. Brokerage firms should not have been recommending FS Energy & Power Fund to conservative or moderate retail investors, retirees, or inexperienced investors.

Investors who bought FS Energy and Power Fund shares at the $10/share price could be looking at losses of 80% or greater on their principal.

Contact Chapman Albin at 214-241-8172 or online at www.chapmanalbin.com for a free consultation.