What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-02-28 compared with 2021-03-01 · 2183 added, 2183 removed, 1817 unchanged (71% of the section changed)

This section is long enough that the comparison stopped early. What follows is partial, and the remainder is not necessarily unchanged.

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Index to Financial Statements

Managements Report on Internal Control over Financial Reporting

Reports of Independent Registered Public Accounting Firms

Managements Report on Internal Control over Financial

Reports of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2021 and

Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and

Consolidated Statements of Operations for the years ended December

31, 2021, 2020 and 2019

Consolidated Statements of Changes in Net Assets for the years ended December 31,

2021, 2020 and 2019

Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and

Consolidated Schedules of Investments as of December 31, 2020 and 2019

Consolidated Statements of Cash Flows for the years ended December

31, 2021, 2020 and 2019

Consolidated Schedules of Investments as of December

31, 2021 and 2020

Notes to Consolidated Financial Statements

MANAGEMENTS REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over

financial reporting.

In connection with the preparation of our annual financial statements, management has conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework set forth in Internal

ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (COSO).

Managements assessment included an evaluation of the design of our internal control over financial

reporting and testing of the operational effectiveness of those controls.

Based on this evaluation, we have concluded that, as of December 31, 2020, our internal control over financial reporting was effective to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.

generally accepted accounting principles.

MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.

connection with the preparation of our annual financial statements, management has conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework set forth in Internal ControlIntegrated

Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (COSO).

Managements assessment included an evaluation of the design of our internal control over financial reporting and testing

of the operational effectiveness of those controls.

Based on this evaluation, we have concluded that, as of December 31, 2021, our internal control over financial reporting was effective to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Our internal control over financial reporting as of

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Opinion on Internal Control over Financial Reporting

We have audited the

internal control over financial reporting of FS KKR Capital Corp.

and subsidiaries (the Company) as of December 31, 2020, based on criteria established in Internal Control Integrated Framework (2013) issued by the Committee

of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in

Internal Control Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the

standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2020, of the Company and our report dated March 1, 2021, expressed an unqualified

opinion on those financial statements.

We have audited the internal control over financial reporting of FS KKR Capital Corp.

and subsidiaries (the Company) as of

December 31, 2021, based on criteria established in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained,

in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the

consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our report dated February 28, 2022, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Companys management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting,

included in the accompanying Managements Report on Internal Control over Financial Reporting.

The Companys

management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal

Control over Financial Reporting.

Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit.

We are a public

accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the

We are a public accounting firm registered with the PCAOB and are required to be

independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform

the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing

the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.

that our audit provides a reasonable basis for our opinion.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a

material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit

provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding

the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A companys internal control over financial reporting includes those policies

and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded

as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and

directors of the company;

A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of

financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A companys internal control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as

necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors

of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Also, projections of

any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

San Francisco, California

March 1, 2021

Francisco, California

February 28, 2022

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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Opinion on the Financial Statements and Financial Highlights

audited the accompanying consolidated balance sheets of FS KKR Capital Corp.

and subsidiaries (the Company), including the consolidated schedules of investments, as of December 31, 2020 and 2019, the related consolidated statements of

operations, changes in net assets, and cash flows for the years then ended, the financial highlights for the years then ended, and the related notes (collectively referred to as the financial statements).

In our opinion, the financial

statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations, changes in net assets, cash flows, and financial highlights for the years then ended, in

conformity with accounting principles generally accepted in the United States of America.

The consolidated financial

statements of the Company for the year ended December 31, 2018, before the effects of the adjustments to retrospectively apply the change in accounting related to the reverse stock split discussed in Note 1 to the financial statements, were audited

by other auditors whose report, dated February 27, 2019, expressed an unqualified opinion on those statements.

We have also audited the adjustments to the 2018 consolidated financial statements to retrospectively apply the change in accounting for

the reverse stock split in 2020, as discussed in Note 1 to the financial statements.

Our procedures included (1) comparing the amounts shown in the per share disclosures for 2018 to the Companys underlying accounting analysis, (2) comparing

the previously reported shares outstanding and the related balance sheet and income statement amounts per the Companys accounting analysis to the previously issued consolidated financial statements, and (3) recalculating the reduction of

shares to give effect to the reverse stock split and testing the mathematical accuracy of the underlying analysis.

In our opinion, such retrospective adjustments are appropriate and have been properly applied.

However, we were not engaged to audit,

review, or apply any procedures to the 2018 consolidated financial statements of the Company other than with respect to the retrospective adjustments, and accordingly, we do not express an opinion or any other form of assurance on the 2018

consolidated financial statements taken as a whole.

We have also audited, in accordance with the standards of the Public

Company Accounting Oversight Board (United States) (PCAOB), the Companys internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control Integrated Framework (2013) issued by

the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 1, 2021 expressed an unqualified opinion on the Companys internal control over financial reporting.

We have audited the accompanying consolidated balance sheets of FS KKR Capital Corp.

and subsidiaries (the Company), including the

consolidated schedules of investments, as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2021, the financial

highlights for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the financial statements).

In our opinion, the financial statements present fairly, in all material

respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations, changes in net assets, cash flows, for each of the three years in the period ended December 31, 2021, and the financial highlights

for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the

Companys internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway

Commission and our report dated February 28, 2022 expressed an unqualified opinion on the Companys internal control over financial reporting.

Basis for Opinion

financial statements and financial highlights are the responsibility of the Companys management.

These financial

statements and financial highlights are the responsibility of the Companys management.

Our responsibility is to express an opinion on the Companys financial statements and financial highlights based on our audits.

public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission

and the PCAOB.

We are a public

accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of

material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and

disclosures in the financial statements and financial highlights.

Our audits also included evaluating the accounting

principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights.

Our procedures included confirmation of investments owned as of December 31, 2020 and

2019, by correspondence with the custodian, loan agents, and borrowers;

Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement

of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

financial statements and financial highlights.

Our audits also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights.

Our procedures included confirmation of investments owned as of December 31, 2021 and 2020, by correspondence with the

custodian, loan agents, and borrowers;

when replies were not received, we performed other auditing procedures.

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was

communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below,

providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Fair Value Level 3

Investments Refer to Notes 2, 6, and 8 to the financial statements

The critical audit

matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to

the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not,

by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Fair Value Level 3 Investments Refer to Notes 2, 6, and 8 to the financial statements

Critical Audit Matter Description

The Company held investments classified as Level 3 investments under accounting principles generally accepted in the United States of

The Company held investments classified as Level 3 investments under accounting principles generally accepted in the United States of America.

These investments included illiquid corporate bonds and loans, unlisted equity securities, and derivatives that lack observable market prices.

The valuation techniques used in estimating the fair value of these investments vary based on the

specific characteristics of the investments and certain significant inputs used were unobservable.

The valuation techniques used in estimating the fair value of these investments vary and certain

significant inputs used were unobservable.

The fair value of the Companys Level 3 investments was $14.0 billion as of December 31, 2021.

We identified the valuation of Level 3 investments as a critical audit matter because of the judgments necessary for management to select

valuation techniques and to use significant unobservable inputs to estimate the fair value.

We identified the valuation of Level 3 investments as a critical audit matter because of the

judgments necessary for management to select valuation techniques and to use significant unobservable inputs, such as selected discount rates, projected future cash flows, and comparable company multiples, to estimate the fair value as of December

31, 2021 or the fair value of investments acquired through a merger with another entity.

This required a high degree of auditor judgment and extensive audit effort, including the need to involve fair value specialists who possess significant

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How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to valuation techniques and unobservable observable inputs used by management to estimate the fair value of Level 3 investments included the following, among others:

We tested the effectiveness of controls over managements valuation of Level 3 investments, including those related to valuation techniques and

significant unobservable inputs.

We evaluated the appropriateness of the valuation techniques used for Level 3 investments and tested the related significant unobservable inputs by

comparing these inputs to external sources.

We evaluated the reasonableness of any significant changes in valuation techniques or significant unobservable inputs, including the considerations of the impact of COVID 19.

For a selected sample of Level

3 investments, we performed these procedures with the assistance of our fair value specialists.

In instances where the selection of valuation techniques or significant unobservable inputs were more subjective, with the assistance of our fair value

specialists, we developed an independent estimate of the fair value and compared our estimates to managements estimates.

We evaluated managements ability to reasonably estimate fair value by comparing managements historical estimates to subsequent

transactions, taking into account changes in market or investment specific conditions, where applicable.

Our audit procedures related to valuation techniques and unobservable inputs used by management to estimate the fair value of Level 3

investments included the following, among others:

We tested the effectiveness of controls over managements valuation of Level 3 investments, including those

related to valuation techniques and significant unobservable inputs.

We evaluated the appropriateness of the valuation techniques used for Level 3 investments and tested the related

significant unobservable inputs by comparing these inputs to external sources.

We evaluated the reasonableness of any significant changes in valuation techniques or significant unobservable inputs.

For a selected sample of Level 3 investments, we

performed these procedures with the assistance of our fair value specialists.

In instances where the selection of valuation techniques or significant unobservable inputs were more subjective,

with the assistance of our fair value specialists, we developed an independent estimate of the fair value and compared our estimates to managements estimates.

We evaluated managements ability to reasonably estimate fair value by comparing managements

historical estimates to subsequent transactions, taking into account changes in market or investment specific conditions, where applicable.

Accounting for the Merger with FS KKR Capital Corp.

II (FSKR) Refer to Notes 1 and 13 to the Financial Statements

Critical Audit Matter Description

On June 16, 2021, the Company completed the merger with FSKR for the purchase price of $3.65 billion of its common stock (the FSKR

The Company accounted for the FSKR Merger as an asset acquisition under accounting principles generally accepted in the United States of America and the fair value of the consideration paid by the Company was allocated to the assets

acquired and liabilities assumed based on their respective fair values as of the date of the transaction.

We identified the accounting for

the FSKR Merger as a critical audit matter because of judgments necessary for management to apply the merger accounting.

This required a high degree of auditor judgement and extensive audit effort, when performing audit procedures to audit

managements application of the merger accounting.

How the Critical Audit Matter Were Addressed in the Audit:

Our audit procedures related to the application of the merger accounting included the following, among others:

We tested the effectiveness of managements controls over the FSKR Merger, including those related to the

determination and application of appropriate accounting policies for asset acquisition.

We evaluated the appropriateness of the merger accounting based on the significant terms of the merger agreement,

the determination of net asset value of FSKR on the merger date, and the allocation of the merger considerations to the assets acquired and liabilities assumed, including the Level 3 investments acquired through the FSKR Merger.

/s/ Deloitte & Touche LLP

San Francisco, California

March 1, 2021

We have served as the Companys auditor since 2019.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

FS KKR Capital Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of operations, changes in net assets and cash flows of FS KKR Capital Corp.

Company) for the year ended December 31, 2018, and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, except for the effects of the adjustments, if any, as might have been determined

to be necessary had we been engaged to audit the Companys restatement of share and per-share information, as described below, the financial statements present fairly, in all material respects, the results of the Companys operations and

its cash flows for the year ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Reverse Stock Split

We were not engaged to audit the restatement of the

Companys disclosures about share and per-share information for the year ended December 31, 2018, as discussed in Note 3 to the financial statements.

Basis for Opinion

These financial statements are the responsibility of the

Companys management.

Our responsibility is to express an opinion on the Companys financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the

Company in accordance with U.S.

federal securities laws and applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Except as discussed above, we conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing

procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and

significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ RSM US LLP

We have served as the auditor of one or more FS Investments investment companies

Blue Bell, Pennsylvania

February 28, 2022

We have served as the Companys auditor since 2019.

Part IFINANCIAL INFORMATION

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Consolidated Balance Sheets

(in millions, except share and per share

(in millions, except share and per share amounts)

Investments, at fair value

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respectively)

Non-controlled/affiliated investments (amortized cost$629 and $686,

respectively)

Non-controlled/affiliated investments (amortized cost$860 and $629, respectively)

Controlled/affiliated investments (amortized cost$2,778 and $1,510, respectively)

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Management and investment adviser fees payable

Subordinated income incentive fees payable (2)

Subordinated income incentive fees

Administrative services expense payable

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Stockholders equity

Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding

Common stock, $0.001 par value, 750,000,000 shares authorized, 123,755,965 and 126,581,766 shares issued and outstanding,

respectively (4)

Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and

Common stock, $0.001 par value, 750,000,000 shares authorized, 284,543,091 and 123,755,965 shares

issued and outstanding, respectively

Capital in excess of par value

Retained earnings (accumulated deficit) (5)

Retained earnings (accumulated

Total stockholders equity

Total liabilities and stockholders equity

Net asset value per share of common stock at year end (4)

Net asset value per share of common stock at year

See Note 9 for a discussion of the Companys financing arrangements.

See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.

See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income

incentive fees.

See Note 10 for a discussion of the Companys commitments and contingencies.

As discussed in Notes 1 and 3, the Company completed a Reverse Stock Split, effective as of June 15, 2020.

The outstanding shares and net

asset value per common share reflect the Reverse Stock Split on a retroactive basis.

See Note 5 for a discussion of the sources of distributions paid by the Company.

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Total operating expenses

Management fee waiver (1)

Incentive fee waiver (1)

Net investment income before taxes

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Net change in unrealized gain (loss) on foreign currency

Change in unrealized appreciation from merger accounting (4)

Total net realized and unrealized gain (loss)

Realized loss on extinguishment of debt

Net increase (decrease) in net assets resulting from operations

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Weighted average shares outstanding

See Note 4 for a discussion of the waiver by FB Income Advisor, LLC, the Companys former investment adviser, of certain management fees

to which it was otherwise entitled during the applicable period.

See Note 2 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income

incentive fees.

See Note 2 and 4 for a discussion of the methodology employed by the Company in calculating the subordinated

income incentive fees.

See Note 9 for a discussion of the Companys financing arrangements.

See Note 13 for a discussion of the 2018 Merger.

Includes $717 change in unrealized appreciation from merger accounting.

Without such amount, net increase (decrease) in net assets resulting

from operations would have been $(2.36).

As discussed in Notes 1 and 3, the Company completed a Reverse Stock Split, effective as of June 15, 2020.

The weighted average shares

used in the per share computation of the net increase (decrease) in net assets resulting from operations reflect the Reverse Stock Split on a retroactive basis.

See notes to consolidated financial statements.

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Net investment income

Net realized gain (loss) on investments, swap contracts, secured borrowing and foreign currency

Net change in unrealized appreciation (depreciation) on investments, swap contracts, foreign currency forward contracts and

secured borrowing (1)

Net realized gain (loss) on investments, swap contracts, foreign currency and extinguishment of

Net change in unrealized appreciation (depreciation) on investments, swap contracts and foreign

currency forward contracts (1)

Net change in unrealized gain (loss) on foreign currency

Change in unrealized appreciation from merger accounting

Net increase (decrease) in net assets resulting from operations

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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:

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net

cash provided by (used in) operating activities:

Purchases of investments (1)

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Net change in unrealized (appreciation) depreciation on foreign currency forward contracts

Change in unrealized appreciation from merger accounting

Realized loss on extinguishment of debt

Accretion of discount

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Unrealized (gain)/loss on borrowings in foreign currency

(Increase) decrease in due from counterparty

(Increase) decrease in receivable for investments sold and repaid

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Increase (decrease) in other accrued expenses and liabilities

Other liabilities acquired from merger net of other assets

Cash acquired in merger

Other assets acquired from merger net of other assets

Merger costs capitalized into purchase price

Mark-to-market of merged debt

Net cash provided by (used in) operating activities

Cash flows from financing activities

Cash purchased in merger

Reinvestment of stockholder distributions

Repurchases of common stock

Stockholder distributions

Borrowings under credit facilities (2)

Borrowings under unsecured notes (2)

Repayments of credit facilities (2)

Repayments under unsecured notes (2)

Borrowings under financing

arrangements (3)

Repayments of financing

arrangements (3)

Deferred financing costs and discount paid

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Local and excise taxes paid

For the year ended December 31, 2018, excludes $4,428 of cost of investments acquired from the 2018 Merger.

For the year ended December 31, 2018, excludes $1,928 of debt assumed from the 2018 Merger.

See Note 9 for a discussion of the

Companys financing arrangements.

Excludes $7,227 of cost of investments acquired from the 2021 Merger.

Excludes $11 of unrealized depreciation on unfunded commitments acquired from the 2021 Merger.

Excludes $3,794 of debt assumed from the 2021 Merger.

See Note 9 for a discussion of the Companys

financing arrangements.

During the years ended December 31, 2021, 2020 and 2019, the Company paid $194, $156 and $171, respectively, in interest expense on the credit facilities and unsecured notes.

Supplemental disclosure of non-cash operating and financing activities:

In connection with the 2018 Merger, the Company issued common stock of $1,574 and acquired investments at fair value of $4,168 ($4,428 at cost) and other

assets of $64 and assumed debt of $1,928 and other liabilities of $210 during the year ended December 31, 2018.

notes to consolidated financial statements.

In connection with the 2021 Merger, the Company issued common stock of $3,650 and acquired investments at cost of $7,227 and other assets of $221 and assumed

debt of $3,794 and other liabilities of $297.

See notes to consolidated financial statements.

FS KKR Capital Corp.

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L+750, 0.0% PIK (2.3% Max PIK)

Ardonagh Group Ltd

Arrotex Australia Group Pty Ltd

Pharmaceuticals, Biotechnology & Life Sciences

Arrotex Australia Group Pty Ltd

Pharmaceuticals, Biotechnology & Life Sciences

Aspect Software Inc

1 unchanged sentence

8.0% PIK (8.0% Max PIK)

Aspect Software Inc

ATX Networks Corp

(ad)(s)(v)(w)

Capital Goods

7.5% PIK (7.5% Max PIK)

Software & Services

Berner Food & Beverage LLC

Food & Staples Retailing

Software & Services

(f)(k)(l)(m)(t)(v)

Consumer Services

5.0%, 8.0% PIK (8.0% Max PIK)

BGB Group LLC

(f)(i)(k)(l)(m)(t)(v)

Media & Entertainment

BGB Group LLC

Media & Entertainment

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Borden (New Dairy Opco)

Food, Beverage & Tobacco

L+700, 0.0% PIK (1.0% Max PIK)

Borden (New Dairy Opco)

Food, Beverage & Tobacco

L+700, 0.0% PIK (1.0% Max PIK)

Borden Dairy Co

(ac)(v)(y)(z)

Food, Beverage & Tobacco

Charles Taylor PLC

Diversified Financials

Bowery Farming Inc

Food, Beverage & Tobacco

Cimarron Energy Inc

Clarience Technologies LLC

(f)(i)(k)(m)(s)(v)

Capital Goods

Clarience Technologies LLC

Capital Goods

Clarience Technologies LLC

Capital Goods

CSM Bakery Products

Food, Beverage & Tobacco

CTI Foods Holding Co LLC

Food, Beverage & Tobacco

Clarience Technologies LLC

Capital Goods

Constellis Holdings LLC

Capital Goods

Corsearch Intermediate Inc

Software & Services

Corsearch Intermediate Inc

Software & Services

(f)(i)(k)(l)(m)(t)(v)

Capital Goods

Dental Care Alliance Inc

(f)(k)(m)(t)(v)

Health Care Equipment & Services

Dental Care Alliance Inc

Health Care Equipment & Services

Dental Care Alliance Inc

Health Care Equipment & Services

Element Materials Technology Group US Holdings Inc

Capital Goods

Encora Digital Inc

Software & Services

L+550, 0.0% PIK (2.4% Max PIK)

Distribution International Inc

Eagle Family Foods Inc

Food, Beverage & Tobacco

Eagle Family Foods Inc

Food, Beverage & Tobacco

Empire Today LLC

Encora Digital Inc

Software & Services

Entertainment Benefits Group LLC

2 unchanged sentences

Entertainment Benefits Group LLC

(f)(k)(l)(m)(v)

Media & Entertainment

3 unchanged sentences

L+575, 2.5% PIK (2.5% Max PIK)

FloWorks International LLC

Capital Goods

FloWorks International LLC

Capital Goods

FloWorks International LLC

Capital Goods

Fairway Group Holdings Corp

(ac)(v)(y)(z)

Food & Staples Retailing

12.0% PIK (12.0% Max PIK)

Fairway Group Holdings Corp

(ac)(v)(y)(z)

Food & Staples Retailing

10.0% PIK (10.0% Max PIK)

Follett Software Co

Software & Services

Follett Software Co

Software & Services

Foundation Consumer Brands LLC

Pharmaceuticals, Biotechnology & Life Sciences

Foundation Consumer Brands LLC

Pharmaceuticals, Biotechnology & Life Sciences

Foundation Risk Partners Corp

Frontline Technologies Group LLC

Software & Services

notes to consolidated financial statements.

Frontline Technologies Group LLC

Software & Services

Galaxy Universal LLC

Consumer Durables & Apparel

Galaxy Universal LLC

Consumer Durables & Apparel

Galaxy Universal LLC

Consumer Durables & Apparel

Galway Partners Holdings LLC

L+525, 0.0% PIK (1.3% Max PIK)

Galway Partners Holdings LLC

L+525, 0.0% PIK (1.3% Max PIK)

Galway Partners Holdings LLC

L+525, 0.0% PIK (1.3% Max PIK)

consolidated financial statements.

FS KKR Capital Corp.

3 unchanged sentences

Portfolio Company (a)

Frontline Technologies Group LLC

General Datatech LP

(f)(k)(l)(m)(t)(v)

Software & Services

Greystone & Co Inc

Diversified Financials

Greystone Equity Member Corp

3 unchanged sentences

Heniff Transportation Systems LLC

(f)(i)(k)(l)(m)(v)

Transportation

1 unchanged sentence

Transportation

Heniff Transportation Systems LLC

Transportation

(f)(k)(l)(m)(t)(v)

Commercial & Professional Services

Higginbotham Insurance Agency Inc

HM Dunn Co Inc

Capital Goods

L+875 PIK (L+875 Max PIK)

HM Dunn Co Inc

Capital Goods

15.0% PIK (15.0% Max PIK)

Hudson Technologies Co

Commercial & Professional Services

E+500, 2.3% PIK (2.3% Max PIK)

Commercial & Professional Services

L+525, 2.3% PIK (2.3% Max PIK)

Individual FoodService

8 unchanged sentences

Pharmaceuticals, Biotechnology & Life Sciences

Industria Chimica Emiliana Srl

Pharmaceuticals, Biotechnology & Life Sciences

Industry City TI Lessor LP

1 unchanged sentence

10.8%, 1.0% PIK (1.0% Max PIK)

Insight Global LLC

Commercial & Professional Services

Insight Global LLC

Commercial & Professional Services

Insight Global LLC

Commercial & Professional Services

Insight Global LLC

Commercial & Professional Services

Integrity Marketing Group LLC

(f)(i)(m)(s)(v)

Jarrow Formulas Inc

(f)(i)(k)(l)(m)(s)(t)(v)

Household & Personal Products

Jo-Ann Stores Inc

Karman Space Inc

Capital Goods

Karman Space Inc

Capital Goods

Karman Space Inc

Capital Goods

KBP Investments LLC

Food & Staples Retailing

KBP Investments LLC

Food & Staples Retailing

Kellermeyer Bergensons Services LLC

(f)(i)(k)(l)(m)(s)(t)(v)

Commercial & Professional Services

1 unchanged sentence

Commercial & Professional Services

Kodiak BP LLC

Capital Goods

Kodiak BP LLC

Capital Goods

Koosharem LLC

Commercial & Professional Services

Lakefield Veterinary Group

Consumer Services

Lakefield Veterinary Group

Consumer Services

Lakeview Farms Inc

Food, Beverage & Tobacco

Lakeview Farms Inc

Food, Beverage & Tobacco

Lakeview Farms Inc

Food, Beverage & Tobacco

Lakeview Farms Inc

Food, Beverage & Tobacco

(i)(k)(l)(m)(v)

Commercial & Professional Services

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Commercial & Professional Services

Lipari Foods LLC

Food & Staples Retailing

Lionbridge Technologies Inc

Consumer Services

Lipari Foods LLC

Food & Staples Retailing

Lloyds Register Quality Assurance Ltd

Consumer Services

SA+600, 0.0% PIK (6.3% Max PIK)

Matchesfashion Ltd

1 unchanged sentence

L+463, 3.0% PIK (3.0% Max PIK)

Miami Beach Medical Group LLC

MB2 Dental Solutions LLC

(k)(l)(m)(t)(v)

Health Care Equipment & Services

MB2 Dental Solutions LLC

Health Care Equipment & Services

Software & Services

L+675 PIK (L+675 Max PIK)

Software & Services

Miami Beach Medical Group LLC

(k)(l)(m)(t)(v)

Health Care Equipment & Services

2 unchanged sentences

7.5% PIK (7.5% Max PIK)

Monitronics International Inc

Commercial & Professional Services

Monitronics International Inc

Commercial & Professional Services

Monitronics International Inc

Commercial & Professional Services

Motion Recruitment Partners LLC

1 unchanged sentence

Motion Recruitment Partners LLC

(f)(i)(m)(t)(v)

Commercial & Professional Services

Motion Recruitment Partners LLC

Commercial & Professional Services

Consumer Durables & Apparel

1 unchanged sentence

L+750, 0.0% PIK (2.5% Max PIK)

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Omnimax International Inc

Capital Goods

Net Documents

Software & Services

Net Documents

Software & Services

Net Documents

Software & Services

Net Documents

Software & Services

New Era Technology Inc

(i)(l)(m)(t)(v)

Software & Services

New Era Technology Inc

Software & Services

New Era Technology Inc

Software & Services

New Era Technology Inc

Software & Services

Omnimax International Inc

(f)(i)(k)(l)(m)(v)

Capital Goods

1 unchanged sentence

Health Care Equipment & Services

Oxford Global Resources LLC

(f)(k)(l)(m)(t)

Commercial & Professional Services

Oxford Global Resources LLC

Commercial & Professional Services

Oxford Global Resources LLC

Commercial & Professional Services

Oxford Global Resources LLC

Commercial & Professional Services

P2 Energy Solutions Inc.

1 unchanged sentence

P2 Energy Solutions Inc.

(f)(i)(k)(m)(s)(t)(v)

Software & Services

1 unchanged sentence

Software & Services

Parata Systems

Health Care Equipment & Services

Parata Systems

Health Care Equipment & Services

Parata Systems

Health Care Equipment & Services

Parts Town LLC

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Parts Town LLC

PartsSource Inc

Health Care Equipment & Services

PartsSource Inc

Health Care Equipment & Services

PartsSource Inc

Health Care Equipment & Services

Capital Goods

Performance Health Holdings Inc

Health Care Equipment & Services

Petroplex Acidizing Inc

L+900 PIK (L+900 Max PIK)

(ac)(v)(y)(z)

L+825, 1.8% PIK (1.8% Max PIK)

Polyconcept North America Inc

3 unchanged sentences

Diversified Financials

Project Marron

Consumer Services

Production Resource Group LLC

Media & Entertainment

L+500, 3.1% PIK (3.1% Max PIK)

Production Resource Group LLC

Media & Entertainment

L+300, 5.5% PIK (5.5% Max PIK)

Production Resource Group LLC

Media & Entertainment

L+550 PIK (L+550 Max PIK)

Production Resource Group LLC

Media & Entertainment

L+750, 0.0% PIK (3.1% Max PIK)

Production Resource Group LLC

Media & Entertainment

L+750, 0.0% PIK (3.1% Max PIK)

Propulsion Acquisition LLC

(f)(l)(s)(t)(v)

Capital Goods

(i)(l)(s)(t)(v)

Health Care Equipment & Services

2 unchanged sentences

Reliant Rehab Hospital Cincinnati LLC

(f)(i)(l)(m)(s)(v)

Health Care Equipment & Services

3 unchanged sentences

Software & Services

Roadrunner Intermediate Acquisition Co LLC

Health Care Equipment & Services

Revere Superior Holdings, Inc

Software & Services

Revere Superior Holdings, Inc

Software & Services

Rise Baking Company

Food, Beverage & Tobacco

Rise Baking Company

Food, Beverage & Tobacco

Rise Baking Company

Food, Beverage & Tobacco

RSC Insurance Brokerage Inc

(f)(i)(k)(l)(m)(s)(v)

RSC Insurance Brokerage Inc

Safe-Guard Products International LLC

Diversified Financials

SAMBA Safety Inc

Software & Services

SAMBA Safety Inc

Software & Services

Consumer Services

Capital Goods

L+675, 0.0% PIK (1.0% Max PIK)

C+850, 0.8% PIK (0.8% Max PIK)

Capital Goods

4 unchanged sentences

Health Care Equipment & Services

Sequential Brands Group Inc.

Consumer Durables & Apparel

Sequel Youth & Family Services LLC

Health Care Equipment & Services

Sequel Youth & Family Services LLC

Health Care Equipment & Services

SitusAMC Holdings Corp

Sorenson Communications LLC

(aa)(ac)(f)(k)(t)(v)

Telecommunication Services

Sound United LLC

Consumer Durables & Apparel

Sungard Availability Services Capital Inc

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Source Code LLC

Software & Services

L+375, 3.8% PIK (3.8% Max PIK)

Source Code LLC

Software & Services

Staples Canada

Summit Interconnect Inc

(f)(k)(l)(t)(v)

Capital Goods

Summit Interconnect Inc

Capital Goods

Sungard Availability Services Capital Inc

Software & Services

L+375, 3.8% PIK (3.8% Max PIK)

SF+375, 3.8% PIK (3.8% Max

Sweeping Corp of America Inc

4 unchanged sentences

Commercial & Professional Services

Sweet Harvest Foods Management Co

Food & Staples Retailing

L+775, 1.0% PIK (1.0% Max PIK)

Sweet Harvest Foods Management Co

Food & Staples Retailing

L+775, 1.0% PIK (1.0% Max PIK)

Sweeping Corp of America Inc

Commercial & Professional Services

(f)(i)(m)(s)(v)

Software & Services

ThermaSys Corp

(ac)(v)(y)(z)

Capital Goods

4 unchanged sentences

L+500, 2.5% PIK (2.5% Max PIK)

Software & Services

Time Manufacturing Co

Capital Goods

Time Manufacturing Co

Capital Goods

Time Manufacturing Co

Capital Goods

Time Manufacturing Co

Capital Goods

Time Manufacturing Co

Capital Goods

Transaction Services Group Ltd

Software & Services

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Transaction Services Group Ltd

2 unchanged sentences

Software & Services

Truck-Lite Co LLC

Capital Goods

Truck-Lite Co LLC

Capital Goods

Truck-Lite Co LLC

Capital Goods

Utility One Source LP

Capital Goods

Virgin Pulse Inc

Software & Services

Warren Resources Inc

L+900, 1.0% PIK (1.0% Max PIK)

Wheels Up Partners LLC

Transportation

Wheels Up Partners LLC

Transportation

Wheels Up Partners LLC

Transportation

Wheels Up Partners LLC

Transportation

Wheels Up Partners LLC

Transportation

Wheels Up Partners LLC

Transportation

Zeta Interactive Holdings Corp

Software & Services

Wealth Enhancement Group LLC

Diversified Financials

Wealth Enhancement Group LLC

Diversified Financials

Wealth Enhancement Group LLC

Diversified Financials

Wealth Enhancement Group LLC

Diversified Financials

(f)(k)(l)(m)(t)(v)

Capital Goods

Total Senior Secured LoansFirst Lien

2 unchanged sentences

Senior Secured LoansSecond Lien20.1%

Abaco Systems, Inc

Advanced Lighting Technologies Inc

Ammeraal Beltech Holding BV

Capital Goods

Amtek Global Technology Pte Ltd

(g)(j)(l)(n)(w)(z)

(ad)(v)(w)(y)(z)

Automobiles & Components

E+500 PIK (E+500 Max PIK)

athenahealth Inc

Health Care Equipment & Services

Apex Group Limited

Diversified Financials

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

(ac)(v)(y)(z)

10.0% PIK (10.0% Max PIK)

Byrider Finance LLC

Automobiles & Components

L+1,000, 0.5% PIK (0.5% Max PIK)

Culligan International Co

Household & Personal Products

L+1,000, 0.5% PIK (0.5% Max

Constellis Holdings LLC

Capital Goods

L+1,100, 0.0% PIK (10.0% Max

Software & Services

Gruden Acquisition Inc

Transportation

MedAssets Inc

Health Care Equipment & Services

Software & Services

Fairway Group Holdings Corp

(ac)(v)(y)(z)

Food & Staples Retailing

11.0% PIK (11.0% Max PIK)

Galaxy Universal LLC

Consumer Durables & Apparel

Software & Services

Consumer Durables & Apparel

L+1,275 PIK (L+1,275 Max PIK)

NEP Broadcasting LLC

Media & Entertainment

OEConnection LLC

Software & Services

Paradigm Acquisition Corp

Health Care Equipment & Services

Peak 10 Holding Corp

Telecommunication Services

OEConnection LLC

Software & Services

Capital Goods

Petrochoice Holdings Inc

3 unchanged sentences

11.0% PIK (11.0% Max PIK)

Pretium Packaging LLC

Household & Personal Products

Pure Fishing Inc

Consumer Durables & Apparel

Rise Baking Company

Food, Beverage & Tobacco

Capital Goods

L+1,075, 0.0% PIK (6.8% Max PIK)

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Sorenson Communications LLC

Telecommunication Services

L+1,150 PIK (L+1,150 Max PIK)

Sound United LLC

Consumer Durables & Apparel

13.5% PIK (13.5% Max PIK)

Sparta Systems Inc

SIRVA Worldwide Inc

Commercial & Professional Services

Software & Services

Sungard Availability Services Capital Inc

(ac)(v)(y)(z)

Software & Services

L+400, 2.8% PIK (2.8 % Max PIK)

Vestcom International Inc

Consumer Services

WireCo WorldGroup Inc

Capital Goods

SF+400, 2.8% PIK (2.8% Max

Valeo Foods Group Ltd

Food, Beverage & Tobacco

Valeo Foods Group Ltd

Food, Beverage & Tobacco

Vantage Specialty Chemicals Inc

Wittur Holding GmbH

2 unchanged sentences

Total Senior Secured LoansSecond Lien

Unfunded Loan Commitments

Net Senior Secured LoansSecond Lien

Other Senior Secured Debt1.6%

Advanced Lighting Technologies Inc

L+1,700 PIK (L+1,700 Max PIK)

Angelica Corp

1 unchanged sentence

10.0% PIK (10.0% Max PIK)

Black Swan Energy Ltd

JW Aluminum Co

Consumer Durables & Apparel

(aa)(ad)(s)(v)

One Call Care Management Inc

Health Care Equipment & Services

8.5% PIK (8.5% Max PIK)

Capital Goods

Velvet Energy Ltd

Total Other Senior Secured Debt

Subordinated Debt1.4%

All Systems Holding LLC

Commercial & Professional Services

10.0% PIK (10.0% Max PIK)

Ardonagh Group Ltd

athenahealth Inc

Health Care Equipment & Services

L+1,113 PIK (L+1,113 Max PIK)

ClubCorp Club Operations Inc

Consumer Services

Cornerstone (Ply Gem Holdings Inc)

12.8% PIK (12.8% Max PIK)

ATX Networks Corp

(ad)(s)(v)(w)(y)(z)

Capital Goods

Craftworks Rest & Breweries Group Inc

10.0% PIK (10.0% Max PIK)

ClubCorp Club Operations Inc

Consumer Services

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Encora Digital Inc

Software & Services

9.8% PIK (9.8% Max PIK)

Hilding Anders

(ad)(v)(w)(y)

Consumer Durables & Apparel

Hilding Anders

(ad)(v)(w)(y)

Consumer Durables & Apparel

Hilding Anders

(g)(l)(n)(w)(z)

(ad)(v)(w)(y)(z)

Consumer Durables & Apparel

13.0% PIK (13.0% Max PIK)

Legends Hospitality LLC

Consumer Services

L+1,000 PIK (L+1,000 Max PIK)

Total Subordinated Debt

Unfunded Debt Commitments

Net Subordinated Debt

Portfolio Company (a)

Asset Based Finance29.1%

801 5th Ave, Seattle, Private Equity

(ad)(v)(w)(y)

801 5th Ave, Seattle, Structure Mezzanine

1 unchanged sentence

Abacus JV, Private Equity

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Accelerator Investments Aggregator LP, Private Equity

2 unchanged sentences

Capital Goods

AMPLIT JV LP, Limited Partnership Interest

Diversified Financials

Australis Maritime, Common Stock

1 unchanged sentence

Avida Holding AB, Common Stock

(ad)(v)(w)(y)

Diversified Financials

2 unchanged sentences

Automobiles & Components

Byrider Finance LLC, Structured Mezzanine

Automobiles & Components

Byrider Finance LLC, Sub Note

Automobiles & Components

Callodine Commercial Finance LLC, 2L Term

Callodine Commercial Finance LLC, 2L Term Loan A

Diversified Financials

Callodine Commercial Finance LLC, 2L Term

Callodine Commercial Finance LLC, 2L Term Loan B

Diversified Financials

1 unchanged sentence

Capital Automotive LP, Structured Mezzanine

11.0% PIK (11.0% Max PIK)

Global Jet Capital LLC, Preferred Stock

Commercial & Professional Services

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Commercial & Professional Services

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Structured Mezzanine

Global Jet Capital LLC, Preferred Stock

Commercial & Professional Services

13 unchanged sentences

Diversified Financials

Home Partners JV, Common Stock

Home Partners JV 2, Private Equity

(g)(l)(n)(x)(y)

(ac)(v)(w)(y)

Home Partners JV 2, Private Equity

(ac)(v)(w)(y)

Home Partners JV 2, Structured Mezzanine

2 unchanged sentences

11.0% PIK (11.0% Max PIK)

Home Partners JV, Common Stock

(ac)(v)(w)(y)

Home Partners JV, Private Equity

(ac)(v)(w)(y)

Home Partners JV, Structured Mezzanine

11.0% PIK (11.0% Max PIK)

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Jet Edge International LLC, Preferred Stock

Transportation

8.0%, 0.0% PIK (8.0% Max PIK)

Jet Edge International LLC, Term Loan

Transportation

10.0%, 2.0% PIK (2.0% Max PIK)

Jet Edge International LLC, Term Loan

Transportation

10.0%, 2.0% PIK (2.0% Max PIK)

Jet Edge International LLC, Warrant

Transportation

Kilter Finance, Preferred Stock

1 unchanged sentence

Kilter Finance, Private Equity

(ad)(v)(w)(y)

KKR Central Park Leasing Aggregator L.P., Partnership Interest

Capital Goods

KKR Chord IP Aggregator LP, Partnership Interest

Media & Entertainment

KKR Chord IP Aggregator LP, Structured Mezzanine

Media & Entertainment

KKR Rocket Loans Aggregator LLC, Partnership Interest

Diversified Financials

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

Capital Goods

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company(a)

Lenovo Group Ltd, Structured Mezzanine

2 unchanged sentences

Technology Hardware & Equipment

Opendoor Labs Inc, 2L Term Loan

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

My Community Homes SFR PropCo 2, Private Equity

(ad)(v)(w)(y)

NewStar Clarendon 2014-1A Class D

Diversified Financials

Opendoor Labs Inc, Structured Mezzanine

Orchard Marine Limited, Class B Common Stock

(ac)(v)(w)(y)

Transportation

Orchard Marine Limited, Series A Preferred Stock

(ac)(v)(w)(y)

Transportation

Pretium Partners LLC P1, Structured Mezzanine

2.8%, 5.3% PIK (5.3% Max PIK)

Pretium Partners LLC P2, Private Equity

Pretium Partners LLC P2, Term Loan

Prime ST LLC, Private Equity

(ad)(v)(w)(y)

Prime ST LLC, Structured Mezzanine

5.0%, 6.0% PIK (6.0% Max PIK)

Rampart CLO 2007 1A Class Subord.

Diversified Financials

Sofi Lending Corp, Purchase Facility

Diversified Financials

Star Mountain Diversified Credit Income Fund III, LP, Private Equity

1 unchanged sentence

Toorak Capital Funding LLC, Membership Interest

(ad)(v)(w)(y)

Toorak Capital Partners LLC, Private Equity

Wind River CLO Ltd.

2012 1A Class Subord.

Diversified Financials

Toorak Capital Partners LLC, Structured Mezzanine

L+650 PIK (L+650 Max PIK)

Toorak Capital Partners LLC, Structured Mezzanine

L+650 PIK (L+650 Max PIK)

Total Asset Based Finance

1 unchanged sentence

Net Asset Based Finance

Strategic Credit Opportunities, LLC23.0%

Strategic Credit Opportunities Partners, LLC

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Credit Opportunities Partners JV, LLC18.1%

Credit Opportunities Partners JV, LLC

Diversified Financials

Total Strategic Credit Opportunities Partners

Total Credit Opportunities Partners JV, LLC

Portfolio Company (a)

Equity/Other17.1% (m)

Advanced Lighting Technologies Inc, Common Stock

Advanced Lighting Technologies Inc, Warrant

Alion Science & Technology Corp, Class A Membership Interest

Capital Goods

All Systems Holding LLC, Common Stock

Commercial & Professional Services

Equity/Other11.7%(e)

Abaco Energy Technologies LLC, Common Stock

Abaco Energy Technologies LLC, Preferred Stock

Affordable Care Inc, Preferred Stock

Health Care Equipment & Services

11.8% PIK (11.8% Max PIK)

American Vision Partners, Private Equity

Health Care Equipment & Services

Amtek Global Technology Pte Ltd, Common Stock

(ad)(g)(v)(w)(y)

Automobiles & Components

Amtek Global Technology Pte Ltd, Ordinary Shares

(ad)(v)(w)(y)

Automobiles & Components

1 unchanged sentence

Amtek Global Technology Pte Ltd, Private Equity

Automobiles & Components

Amtek Global Technology Pte Ltd, Trade Claim

(ad)(v)(w)(y)

Automobiles & Components

1 unchanged sentence

Health Care Equipment & Services

Ap Plasman Inc, Warrant

Capital Goods

Arcos LLC/VA, Preferred Stock

Software & Services

L+950 PIK (L+950 Max PIK)

Ardonagh Ltd, Ordinary Shares

2 unchanged sentences

Arena Energy LP, Warrants

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim

ASG Technologies, Common Stock

Software & Services

ASG Technologies, Warrant

Software & Services

Aspect Software Inc, Common Stock

2 unchanged sentences

Software & Services

ATX Networks Corp, Common Stock

(ad)(s)(v)(w)(y)

Capital Goods

AVF Parent LLC, Trade Claim

Belk Inc, Units

Belk Inc, Common Stock

Borden (New Dairy Opco), Common Stock

(ac)(h)(n)(y)

Food, Beverage & Tobacco

Bowery Farming Inc, Warrants

Food, Beverage & Tobacco

Catalina Marketing Corp, Common Stock

Media & Entertainment

CDS US Intermediate Holdings Inc, Warrant

Media & Entertainment

Cengage Learning, Inc, Common Stock

Media & Entertainment

Charlotte Russe Inc, Common Stock

Chisholm Oil & Gas Operating LLC, Series A Units

Cimarron Energy Inc, Common Stock

Cimarron Energy Inc, Participation Option

Constellis Holdings LLC, Private Equity

(ac)(f)(v)(y)

Capital Goods

CTI Foods Holding Co LLC, Common Stock

Food, Beverage & Tobacco

Directed LLC, Warrant

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

Cubic Corp, Preferred Stock

Software & Services

11.0% PIK (11.0% Max PIK)

Envigo Laboratories Inc, Series A Warrant

Health Care Equipment & Services

Envigo Laboratories Inc, Series B Warrant

Health Care Equipment & Services

Fairway Group Holdings Corp, Common Stock

Food & Staples Retailing

Fox Head Inc, Common Stock

Consumer Durables & Apparel

Empire Today LLC, Common Stock

Fronton BV, Common Stock

Consumer Services

Galaxy Universal LLC, Common Stock

Consumer Durables & Apparel

Galaxy Universal LLC, Trade Claim

Consumer Durables & Apparel

Genesys Telecommunications Laboratories Inc, Class A Shares

7 unchanged sentences

Hilding Anders, Class A Common Stock

(ad)(v)(w)(y)

Consumer Durables & Apparel

Hilding Anders, Class B Common Stock

(ad)(v)(w)(y)

Consumer Durables & Apparel

Hilding Anders, Class C Common Stock

(ad)(v)(w)(y)

Consumer Durables & Apparel

Hilding Anders, Equity Options

(ad)(v)(w)(y)

Consumer Durables & Apparel

HM Dunn Co Inc, Preferred Stock, Series A

(ad)(s)(v)(y)

Capital Goods

HM Dunn Co Inc, Preferred Stock, Series B

(ad)(s)(v)(y)

Capital Goods

Home Partners of America Inc, Common Stock

Home Partners of America Inc, Warrant

Imagine Communications Corp, Common Stock

3 unchanged sentences

JW Aluminum Co, Common Stock

(ad)(j)(u)(v)(y)

JW Aluminum Co, Preferred Stock

(ad)(j)(u)(v)

12.5% PIK (12.5% Max PIK)

Maverick Natural Resources, Common Stock

Maverick Natural Resources LLC, Common Stock

MB Precision Holdings LLC, Class A2 Units

Capital Goods

Med-Metrix, Common Stock

Software & Services

Med-Metrix, Preferred Stock

Software & Services

8.0% PIK (8.0% Max PIK)

Miami Beach Medical Group LLC, Common Stock

4 unchanged sentences

Capital Goods

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Micronics Filtration Holdings Inc, Preferred Stock, Series B

2 unchanged sentences

Capital Goods

3.0% PIK (3.0% Max PIK)

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK

Capital Goods

7.5% PIK (7.5% Max PIK)

Misys Ltd, Preferred Stock

Software & Services

L+1,025 PIK (L+1,025 Max PIK)

NBG Home, Common Stock

4 unchanged sentences

Health Care Equipment & Services

4,370,566,806

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company (a)

One Call Care Management Inc, Preferred Stock A

4 unchanged sentences

Petroplex Acidizing Inc, Preferred Stock A

2.0% PIK (2.0% Max PIK)

Petroplex Acidizing Inc, Warrant

1 unchanged sentence

Household & Personal Products

PRG III LLC, Preferred Stock, Series A PIK

Media & Entertainment

PRG III LLC, Preferred Stock, Series B PIK

Media & Entertainment

Proserv Acquisition LLC, Class A Common Units

(ac)(v)(w)(y)

Proserv Acquisition LLC, Class A Preferred Units

Quorum Health Corp, Common Stock

Health Care Equipment & Services

(ac)(v)(w)(y)

Quorum Health Corp, Trade Claim

3 unchanged sentences

Ridgeback Resources Inc, Common Stock

Sequential Brands Group Inc., Common Stock

Consumer Durables & Apparel

(j)(u)(v)(w)(y)

Sorenson Communications LLC, Common Stock

(ac)(j)(u)(v)(y)

Telecommunication Services

Sound United LLC, Class A Units

Consumer Durables & Apparel

Sound United LLC, Common Stock

Consumer Durables & Apparel

Sound United LLC, Series I Units

Consumer Durables & Apparel

Sound United LLC, Series II Units

Consumer Durables & Apparel

SSC (Lux) Limited S.a r.l., Common Stock

Health Care Equipment & Services

Stuart Weitzman Inc, Common Stock

1 unchanged sentence

Sungard Availability Services Capital Inc, Common Stock

(ac)(s)(u)(v)(y)

Software & Services

Sweet Harvest Foods Management Co, Warrant

Food & Staples Retailing

Swift Worldwide Resources Holdco Ltd, Common Stock

ThermaSys Corp, Common Stock

(ac)(u)(v)(y)

Capital Goods

1 unchanged sentence

Capital Goods

Trace3 Inc, Common Stock

Software & Services

Versatile Processing Group Inc, Class A2 Units

Warren Resources Inc, Common Stock

Zeta Interactive Holdings Corp, Preferred Stock, Series E1

Software & Services

Zeta Interactive Holdings Corp, Preferred Stock, Series F

Software & Services

Zeta Interactive Holdings Corp, Warrant

Zeta Interactive Holdings Corp, Common Stock

Software & Services

1 unchanged sentence

TOTAL INVESTMENTS208.3%

notes to consolidated financial statements.

LIABILITIES IN EXCESS OF OTHER

ASSETS(108.3%)

NET ASSETS100%

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

Portfolio Company (a)

LIABILITIES IN EXCESS OF OTHER ASSETS(119.0%)

NET ASSETS100%

Foreign currency forward contracts

18 unchanged sentences

JP Morgan Chase Bank

Security may be an obligation of one or more entities affiliated with the named company.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a publicly disclosed base rate plus a

basis point spread.

As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.24%, the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar Offer Rate, or CDOR, was 0.48% and the

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a

publicly disclosed base rate plus a basis point spread.

As of December 31, 2021, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.21%, the Euro Interbank Offered Rate, or EURIBOR, was (0.57)%, Canadian Dollar

Offer Rate, or CDOR was 0.52%, the Bank Bill Swap Bid Rate, or BBSY was 0.12%, the Reykjavik Interbank Offered Rate, or REIBOR, was 2.65%, the Stockholm Interbank Offered Rate, or STIBOR, was (0.05)%, the Sterling Overnight Index Average, or SONIA,

was .19%, the Secured Overnight Financing Rate, or SOFR, was .05%, and the U.S.

Prime Lending Rate, or Prime, was 3.25%.

PIK means paid-in-kind.

PIK income accruals may be adjusted based on the fair value of the underlying investment.

Denominated in U.S.

dollars unless otherwise noted.

Fair value determined by the Companys board of directors (see Note 8).

Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with ING Capital LLC (see Note 9).

Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility

(see Note 9).

notes to consolidated financial statements.

PIK income accruals may

be adjusted based on the fair value of the underlying investment.

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

Security or portion thereof held within FS KKR MM CLO 1 LLC (see Note 9).

Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9).

Security or portion thereof was held within CCT Dublin Funding Limited

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 companys total assets.

As of December 31, 2020, 73.4% of the Companys total assets represented

qualifying assets.

Denominated in U.S.

dollars unless otherwise noted.

Fair value determined by the Companys board of directors (see Note 8).

Listed investments may be treated as debt for GAAP or tax purposes.

Security is non-income producing.

Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company.

Security or portion thereof held within Ambler Funding LLC and is pledged as collateral supporting the amounts

outstanding under the revolving credit facility with Ally Bank (see Note 9).

Security or portion thereof was held within CCT Dublin Funding Limited

Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company.

Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9).

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).

Security or portion thereof held within Darby Creek LLC and is pledged as collateral supporting the amounts

outstanding under a revolving credit facility with Deutsche Bank AG, New York Branch (see Note 9).

Security or portion thereof held within Dunlap Funding LLC and is pledged as collateral supporting the amounts

outstanding under a revolving credit facility with Deutsche Bank AG, New York Branch (see Note 9).

Security or portion thereof was held within FSK CLO as of December 31, 2021.

Security held within FSIC II Investments, Inc., a wholly-owned subsidiary of the Company.

Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company.

Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company.

Security held within IC Arches Investments LLC, a wholly-owned subsidiary of the Company.

Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company.

Security held within IC II Arches Investments, LLC, a wholly-owned subsidiary of the Company.

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.

(see Note 9).

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).

Security or portion thereof held within Race Street Funding LLC.

Security is available as collateral supporting

the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9).

Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured

Revolving Credit Facility (see Note 9).

The investment is not a qualifying asset under the Investment Company Act of 1940, as amended.

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 companys total assets.

As of December 31, 2021, 75.1% of the

Companys total assets represented qualifying assets.

Security is an unfunded commitment.

Reflects the stated spread at the time of commitment, but may not be the actual rate received upon

Asset is on non-accrual status.

Security is classified as Level 1 or 2 in the Companys fair value hierarchy (see Note 8).

notes to consolidated financial statements.

Reflects the stated spread at the time of commitment, but may not be the

actual rate received upon funding.

Security is non-income producing.

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

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 companys voting securities and generally is deemed to control a portfolio company if it owns more than 25% of the portfolio companys voting securities or it has the power to

exercise control over the management or policies of such portfolio company.

As of December 31, 2020, the Company held investments in portfolio companies of which it is deemed to be an affiliated person but is not deemed to

Asset is on non-accrual status.

Security is classified as Level 1 or 2 in the Companys fair value hierarchy (see Note 8).

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 companys voting securities and generally is deemed to control a portfolio company if it owns more than 25% of the portfolio companys voting securities

or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2021, the Company held investments in portfolio companies of which it is 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 was deemed to be an affiliated person for the year ended December 31, 2021:

7 unchanged sentences

Senior Secured LoansFirst Lien

Affordable Care Inc

Borden (New Dairy Opco)

1 unchanged sentence

Borden Dairy Co

Constellis Holdings LLC

Fairway Group Holdings Corp

HM Dunn Co Inc (5)

MB Precision Holdings LLC

Micronics Filtration Holdings Inc

1 unchanged sentence

Petroplex Acidizing Inc

Safariland LLC

Sorenson Communications LLC (4)

Sungard Availability Services Capital

ThermaSys Corp

Z Gallerie LLC

Senior Secured LoansSecond Lien

Z Gallerie LLC

Constellis Holdings LLC

Fairway Group Holdings Corp

Sorenson Communications LLC

Sungard Availability Services Capital Inc

Other Senior Secured Debt

JW Aluminum Co (5)

Mood Media Corp

Z Gallerie LLC

Asset Based Finance

Home Partners JV, Common Stock

Home Partners JV, Private Equity

Home Partners JV, Structured Mezzanine

Orchard Marine Limited, Class B Common Stock

Orchard Marine Limited, Series A Preferred Stock

AltEn, LLC, Membership Units

ASG Technologies, Common Stock

ASG Technologies, Warrants

Borden (New Dairy Opco), Common Stock

Charlotte Russe Inc, Common Stock

Fronton BV, Common Stock

HM Dunn Co Inc, Preferred Stock, Series A

notes to consolidated financial statements.

Subordinated Debt

Home Partners of America Inc

consolidated financial statements.

FS KKR Capital Corp.

9 unchanged sentences

Fair Value at

HM Dunn Co Inc, Preferred Stock, Series B

Asset Based Finance

Home Partners JV, Structured Mezzanine

Home Partners JV, Private Equity

Home Partners JV, Common Stock

Home Partners JV 2, Structured Mezzanine

Home Partners JV 2, Private Equity

Jet Edge International LLC, Preferred Stock

Jet Edge International LLC, Warrant

Jet Edge International LLC, Term Loan

Orchard Marine Limited, Class B Common Stock

Orchard Marine Limited, Series A Preferred Stock

Affordable Care Inc, Common Stock

ASG Technologies, Common Stock

ASG Technologies, Warrants

Belk Inc, Common Stock

Borden (New Dairy Opco), Common Stock

Charlotte Russe Inc, Common Stock

Constellis Holdings LLC, Private Equity

Fairway Group Holdings Corp, Common Stock

Fronton BV, Common Stock

HM Dunn Co Inc, Preferred Stock, Series

Home Partners of America Inc, Common Stock

2 unchanged sentences

JW Aluminum Co, Preferred Stock (5)

MB Precision Holdings LLC, Class A2 Units

MB Precision Holdings LLC, Preferred Stock

Micronics Filtration Holdings Inc, Common

Micronics Filtration Holdings Inc, Preferred Stock, Series

Micronics Filtration Holdings Inc, Common Stock

Micronics Filtration Holdings Inc, Preferred Stock, Series A

Micronics Filtration Holdings Inc, Preferred Stock, Series B

Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK

Mood Media Corp, Common Stock

Mood Media LLC, Class A Warrants

Mood Media LLC, Class B Warrants

Mood Media LLC, Class C Warrants

One Call Care Management Inc, Common Stock

One Call Care Management Inc, Preferred Stock A

One Call Care Management Inc, Preferred Stock B

One Call Care Management Inc, Common

One Call Care Management Inc, Preferred Stock

Petroplex Acidizing Inc, Preferred Stock A

2 unchanged sentences

Proserv Acquisition LLC, Class A Preferred Units

Safariland LLC, Common Equity

ThermaSys Corp, Common Stock

ThermaSys Corp, Preferred Stock

Z Gallerie LLC, Common Stock

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.

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.

Interest, PIK, fee and dividend income presented for the full year ended December 31, 2020.

The Company held this investment as of December 31, 2019 but it was not deemed to be an affiliated person of the portfolio

company as of December 31, 2019.

Transfers in or out have been presented at amortized cost.

notes to consolidated financial statements.

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

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 companys voting securities or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2020, the Company held investments in one portfolio company of

which it is deemed to be an affiliated person and deemed to control.

During the year ended December 31, 2020, the Company disposed of investments in one portfolio of which it was deemed to be an affiliated

person and deemed to control.

The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and deemed to control for the year ended

December 31, 2020:

Portfolio Company

5 unchanged sentences

Fair Value at

Sorenson Communications LLC, Common

Sungard Availbaility Services Capital Inc, Common Stock (4)

ThermaSys Corp, Common Stock

ThermaSys Corp, Preferred Stock

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.

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.

Interest, PIK, fee and dividend income presented for the full year ended December 31, 2021.

The Company held this investment as of December 31, 2020 but it was not deemed to be an affiliated

person of the portfolio company as of December 31, 2020.

Transfers in or out have been presented at amortized cost.

The Company held this investment as of December 31, 2021 but it was deemed to control the

portfolio company as of December 31, 2021.

Transfers in or out have been presented at amortized cost.

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 companys voting securities or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2021, the Company held

investments in one portfolio company of which it is deemed to be an affiliated person and deemed to control.

During the year ended December 31, 2021, the Company disposed of investments in one portfolio of which it was

deemed to be an affiliated person and deemed to control.

The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and

deemed to control for the year ended December 31, 2021:

Portfolio Company

Fair Value at

Additions (1)

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

Senior Secured LoansFirst Lien

1 unchanged sentence

Amtek Global Technology Pte Ltd

ATX Networks Corp

HM Dunn Co Inc (4)

One Call Care Management Inc

Production Resource Group LLC

Sound United LLC

Warren Resources Inc (4)

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2021

(in millions, except share amounts)

Portfolio Company

Fair Value at

Additions (1)

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

Senior Secured LoansSecond Lien

3 unchanged sentences

Advanced Lighting Technologies Inc

JW Aluminum Co (4)

One Call Care Management Inc (4)

Subordinated Debt

Hilding Anders

ATX Networks Corp

Hilding Anders

7 unchanged sentences

Kilter Finance, Private Equity

KKR Rocket Loans Aggregator LLC, Partnership Interest

My Community Homes SFR PropCo 2, Private Equity

Prime St LLC, Private Equity

2 unchanged sentences

Toorak Capital Partners, LLC, Private Equity

Strategic Credit Opportunities Partners, LLC

Advanced Lighting Technologies Inc, Common

Advanced Lighting Technologies Inc,

Toorak Capital Partners LLC, Structured Mezzanine

Credit Opportunities Partners JV, LLC

Advanced Lighting Technologies Inc, Common Stock

Advanced Lighting Technologies Inc, Warrant

Amtek Global Technology Pte Ltd, Common Stock

Amtek Global Technology Pte Ltd, Ordinary Shares

1 unchanged sentence

Amtek Global Technology Pte Ltd, Private Equity

Hilding Anders, ARLE PIK Interest

ATX Networks Corp, Common Stock

Hilding Anders, Class A Common Stock

notes to consolidated financial statements.

Hilding Anders, Class B Common Stock

Hilding Anders, Class C Common Stock

Hilding Anders, Equity Options

HM Dunn Co Inc, Preferred Stock, Series

consolidated financial statements.

FS KKR Capital Corp.

9 unchanged sentences

Fair Value at

Hilding Anders, Class B Common Stock

Hilding Anders, Class C Common Stock

Hilding Anders, Equity Options

KKR BPT Holdings Aggregator LLC, Membership Interest

JW Aluminum Co, Common Stock (4)

JW Aluminum Co, Preferred Stock (4)

One Call Care Management Inc, Common

One Call Care Management Inc, Preferred Stock

Production Resource Group LLC, Preferred Stock, Series A PIK

Production Resource Group LLC, Preferred Stock, Series B PIK

Sound United LLC, Class A Units

2 unchanged sentences

Sound United LLC, Series II Units

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.

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.

Interest, PIK and dividend income presented for the full year ended December 31, 2020.

notes to consolidated financial statements.

Warren Resources Inc, Common Stock

Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK

Gross reductions include decreases in the cost basis of investments resulting from principal collections related

Interest, PIK, fee and dividend income presented for the full year ended December 31, 2021.

The Company held this investment as of December 31, 2020 but it was not deemed to be an control

of the portfolio company as of December 31, 2020.

Transfers in or out have been presented at amortized cost.

consolidated financial statements.

FS KKR Capital Corp.

7 unchanged sentences

5 Arch Income Fund 2 LLC

(l)(n)(q)(v)(w)

Diversified Financials

8 unchanged sentences

Capital Goods

Acproducts Inc

Consumer Durables & Apparel

Advanced Lighting Technologies Inc

Advantage Sales & Marketing Inc

Commercial & Professional Services

Alion Science & Technology Corp

Capital Goods

All Systems Holding LLC

2 unchanged sentences

Commercial & Professional Services

All Systems Holding LLC

Commercial & Professional Services

L+400 PIK (L+400 Max PIK)

AM General LLC

Capital Goods

American Tire Distributors Inc

Automobiles & Components

Ammeraal Beltech Holding BV

Capital Goods

L+750, 0.0% PIK (1.5% Max PIK)

Amtek Global Technology Pte Ltd

6 unchanged sentences

Diversified Financials

Apex Group Limited

Diversified Financials

Ardonagh Group Ltd

L+750, 0.0% PIK (2.3% Max PIK)

Ardonagh Group Ltd

L+750, 0.0% PIK (2.3% Max PIK)

Aspect Software Inc

Software & Services

8.0% PIK (8.0% Max PIK)

Aspect Software Inc

Software & Services

athenahealth Inc

Health Care Equipment & Services

AVF Parent LLC

L+925 PIK (L+925 Max PIK)

Bellatrix Exploration Ltd

Berner Food & Beverage LLC

Food & Staples Retailing

Borden (New Dairy Opco)

Food, Beverage & Tobacco

Borden (New Dairy Opco)

Food, Beverage & Tobacco

L+700, 0.0% PIK (1.0% Max PIK)

Borden Dairy Co

Food, Beverage & Tobacco

Brand Energy & Infrastructure Services Inc

Capital Goods

Camping World Good Sam

Consumer Durables & Apparel

CEPSA Holdco (Matador Bidco)

CHS/Community Health Systems, Inc.

Health Care Equipment & Services

Commercial Barge Line Co

Transportation

Compassus LLC

Health Care Equipment & Services

Capital Goods

Charles Taylor PLC

Diversified Financials

Capital Goods

5 unchanged sentences

Food, Beverage & Tobacco

L+577, 3.0% PIK (3.0% Max PIK)

Distribution International Inc

3 unchanged sentences

Food, Beverage & Tobacco

Eagle Family Foods Inc

Food, Beverage & Tobacco

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Electronics For Imaging Inc

Technology Hardware & Equipment

Empire Today LLC

1 unchanged sentence

Media & Entertainment

L+575, 2.5% PIK (2.5% Max PIK)

Entertainment Benefits Group LLC

Media & Entertainment

L+575, 2.5% PIK (2.5% Max PIK)

Entertainment Benefits Group LLC

Media & Entertainment

L+575, 2.5% PIK (2.5% Max PIK)

FloWorks International LLC

Capital Goods

FloWorks International LLC

Capital Goods

FloWorks International LLC

Capital Goods

Frontline Technologies Group LLC

Software & Services

Frontline Technologies Group LLC

Software & Services

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Greystone & Co Inc

2 unchanged sentences

Diversified Financials

Greystone Equity Member Corp

Diversified Financials

Heniff Transportation Systems LLC

4 unchanged sentences

Transportation

Heniff Transportation Systems LLC

Transportation

HM Dunn Co Inc

6 unchanged sentences

Commercial & Professional Services

Hunt Mortgage

Diversified Financials

Icynene Group Ltd

Commercial & Professional Services

E+500, 2.3% PIK (2.3% Max PIK)

Commercial & Professional Services

Imagine Communications Corp

Media & Entertainment

Imagine Communications Corp

Media & Entertainment

L+525, 2.3% PIK (2.3% Max PIK)

Individual FoodService

Capital Goods

Individual FoodService

Capital Goods

Individual FoodService

Capital Goods

Individual FoodService

Capital Goods

Industria Chimica Emiliana Srl

5 unchanged sentences

10.8%, 1.0% PIK (1.0% Max PIK)

JHT Holdings Inc

Capital Goods

Jarrow Formulas Inc

Household & Personal Products

Jo-Ann Stores Inc

Consumer Services

Kellermeyer Bergensons Services LLC

2 unchanged sentences

Commercial & Professional Services

Kellermeyer Bergensons Services LLC

Commercial & Professional Services

Kodiak BP LLC

4 unchanged sentences

Commercial & Professional Services

Technology Hardware & Equipment

Commercial & Professional Services

1 unchanged sentence

Commercial & Professional Services

Lionbridge Technologies Inc

Consumer Services

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Lipari Foods LLC

2 unchanged sentences

Food & Staples Retailing

Lipari Foods LLC

Food & Staples Retailing

Matchesfashion Ltd

Consumer Durables & Apparel

MB Precision Holdings LLC

Capital Goods

L+725, 2.3% PIK (2.3% Max

MI Windows & Doors Inc

Capital Goods

L+463, 1.0% PIK (1.0% Max PIK)

Miami Beach Medical Group LLC

Health Care Equipment & Services

Miami Beach Medical Group LLC

Health Care Equipment & Services

Micronics Filtration Holdings Inc

Capital Goods

L+800, 0.5% PIK (0.5% Max PIK)

Motion Recruitment Partners LLC

Commercial & Professional Services

7.5% PIK (7.5% Max PIK)

Motion Recruitment Partners LLC

2 unchanged sentences

Commercial & Professional Services

Multi-Color Corp

Commercial & Professional Services

Consumer Durables & Apparel

Software & Services

North Haven Cadence Buyer Inc

Consumer Services

North Haven Cadence Buyer Inc

Consumer Services

North Haven Cadence Buyer Inc

Consumer Services

North Haven Cadence Buyer Inc

Consumer Services

One Call Care Management Inc

Ontic Engineering & Manufacturing Inc

Capital Goods

Ontic Engineering & Manufacturing Inc

L+500, 2.5% PIK (2.5% Max PIK)

Omnimax International Inc

Capital Goods

Telecommunication Services

PAE Holding Corp

Omnimax International Inc

Capital Goods

Peak 10 Holding Corp

Telecommunication Services

One Call Care Management Inc

Health Care Equipment & Services

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

P2 Energy Solutions Inc.

Software & Services

P2 Energy Solutions Inc.

Software & Services

P2 Energy Solutions Inc.

Software & Services

Petroplex Acidizing Inc

L+725, 1.8% PIK (1.8% Max

Power Distribution Inc

Capital Goods

L+900 PIK (L+900 Max PIK)

Polyconcept North America Inc

Household & Personal Products

L+450 PIK (L+450 Max PIK)

Premium Credit Ltd

Diversified Financials

Project Marron

1 unchanged sentence

Health Care Equipment & Services

Qdoba Restaurant Corp

Consumer Services

Quorum Health Corp

Health Care Equipment & Services

Reliant Rehab Hospital Cincinnati LLC

Health Care Equipment & Services

Revere Superior Holdings Inc

Software & Services

Revere Superior Holdings Inc

Software & Services

Roadrunner Intermediate Acquisition Co LLC

3 unchanged sentences

RSC Insurance Brokerage Inc

Safariland LLC

Capital Goods

Safariland LLC

Capital Goods

Safe-Guard Products International LLC

Diversified Financials

L+800, 0.8% PIK (0.8% Max PIK)

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

C+850, 0.8% PIK (0.8% Max PIK)

Capital Goods

L+675, 0.0% PIK (1.0% Max PIK)

5 unchanged sentences

Consumer Durables & Apparel

Smart Foodservice

Food & Staples Retailing

SMART Global Holdings Inc

Semiconductors & Semiconductor Equipment

Sorenson Communications LLC

Telecommunication Services

Staples Canada

Sound United LLC

Consumer Durables & Apparel

Sungard Availability Services Capital Inc

Software & Services

L+375, 3.8% PIK (3.8% Max PIK)

Sungard Availability Services Capital Inc

Software & Services

Sutherland Global Services Inc

Software & Services

L+375, 3.8% PIK (3.8% Max PIK)

Sweeping Corp of America Inc

Commercial & Professional Services

Sweeping Corp of America Inc

Commercial & Professional Services

Sweeping Corp of America Inc

Commercial & Professional Services

Sweet Harvest Foods Management Co

1 unchanged sentence

L+775, 1.0% PIK (1.0% Max PIK)

Software & Services

Sweet Harvest Foods Management Co

Food & Staples Retailing

L+775, 1.0% PIK (1.0% Max PIK)

Software & Services

Team Health Inc

Health Care Equipment & Services

ThermaSys Corp

Capital Goods

L+1,100 PIK (L+1,100 Max PIK)

ThreeSixty Group

L+375, 3.8% PIK (3.8% Max PIK)

ThreeSixty Group

Total Safety US Inc

Capital Goods

L+375, 3.8% PIK (3.8% Max PIK)

Software & Services

Transaction Services Group Ltd

Consumer Services

Software & Services

Transaction Services Group Ltd

Consumer Services

Software & Services

Transaction Services Group Ltd

Software & Services

Truck-Lite Co LLC

Automobiles & Components

Capital Goods

Truck-Lite Co LLC

Automobiles & Components

Capital Goods

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Truck-Lite Co LLC

Automobiles & Components

Capital Goods

Utility One Source LP

Capital Goods

Vertiv Group Corp

Technology Hardware & Equipment

Virgin Pulse Inc

Software & Services

Commercial & Professional Services

Warren Resources Inc

10 unchanged sentences

Transportation

Yak Access LLC

Capital Goods

Zeta Interactive Holdings Corp

Software & Services

Wheels Up Partners LLC

Transportation

Zeta Interactive Holdings Corp

3 unchanged sentences

Net Senior Secured LoansFirst Lien

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Senior Secured LoansSecond Lien28.4%

1 unchanged sentence

Capital Goods

Access CIG LLC

Software & Services

Advantage Sales & Marketing Inc

Commercial & Professional Services

Agro Merchants Global LP

Transportation

Albany Molecular Research Inc

Pharmaceuticals, Biotechnology & Life Sciences

Amtek Global Technology Pte Ltd

Automobiles & Components

Amtek Global Technology Pte Ltd

(g)(j)(l)(n)(w)(z)

Automobiles & Components

Arena Energy LP

L+900, 4.0% PIK (4.0% Max PIK)

E+500 PIK (E+500 Max PIK)

athenahealth Inc

Health Care Equipment & Services

Bellatrix Exploration Ltd

Byrider Finance LLC

1 unchanged sentence

L+1,000, 0.5% PIK (0.5% Max PIK)

Chisholm Oil & Gas Operating LLC

L+550, 3.0% PIK (3.0% Max PIK)

CommerceHub Inc

Software & Services

Culligan International Co

Household & Personal Products

EaglePicher Technologies LLC

Capital Goods

Electronics For Imaging Inc

Technology Hardware & Equipment

Emerald Performance Materials LLC

Excelitas Technologies Corp

Technology Hardware & Equipment

Software & Services

Gruden Acquisition Inc

Transportation

LBM Borrower LLC

Capital Goods

MedAssets Inc

Health Care Equipment & Services

Software & Services

Consumer Durables & Apparel

L+1,275 PIK (L+1,275 Max PIK)

NEP Broadcasting LLC

2 unchanged sentences

Software & Services

Ontic Engineering & Manufacturing Inc

Capital Goods

P2 Energy Solutions, Inc.

Software & Services

Paradigm Acquisition Corp

6 unchanged sentences

Household & Personal Products

11.0% PIK (11.0% Max PIK)

Pretium Packaging LLC

Household & Personal Products

Pure Fishing Inc

2 unchanged sentences

Food, Beverage & Tobacco

SIRVA Worldwide Inc

Commercial & Professional Services

Capital Goods

L+1,075, 0.0% PIK (6.8% Max PIK)

Sorenson Communications LLC

Telecommunication Services

L+1,150 PIK (L+1,150 Max PIK)

Sound United LLC

Consumer Durables & Apparel

13.5% PIK (13.5% Max PIK)

4 unchanged sentences

L+400, 2.8% PIK (2.8 % Max PIK)

notes to consolidated financial statements.

Vestcom International Inc

Consumer Services

WireCo WorldGroup Inc

Capital Goods

consolidated financial statements.

FS KKR Capital Corp.

3 unchanged sentences

Portfolio Company (a)

Vestcom International Inc

Consumer Services

WireCo WorldGroup Inc

Capital Goods

Wittur Holding GmbH

1 unchanged sentence

E+850, 0.5% PIK (0.5% Max PIK)

Z Gallerie LLC

Total Senior Secured LoansSecond Lien

6 unchanged sentences

Black Swan Energy Ltd

Cleaver-Brooks Inc

Capital Goods

Enterprise Development Authority

Consumer Services

FourPoint Energy LLC

JW Aluminum Co

Consumer Durables & Apparel

Maxim Crane Works LP / Maxim Finance Corp

Capital Goods

Mood Media Corp

Media & Entertainment

L+1,400 PIK (L+1,400 Max PIK)

MultiPlan Inc

Health Care Equipment & Services

Pattonair Holdings Ltd

Capital Goods

Rockport (Relay)

Consumer Durables & Apparel

15.0% PIK (15.0% Max PIK)

Capital Goods

Velvet Energy Ltd

Commercial & Professional Services

Z Gallerie LLC

Total Other Senior Secured Debt

Subordinated Debt5.5%

Alion Science & Technology Corp

Capital Goods

Alion Science & Technology Corp

Capital Goods

All Systems Holding LLC

1 unchanged sentence

10.0% PIK (10.0% Max PIK)

Ardonagh Group Ltd

athenahealth Inc

1 unchanged sentence

L+1,113 PIK (L+1,113 Max PIK)

Byrider Finance LLC

Automobiles & Components

20.0% PIK (20.0% Max PIK)

ClubCorp Club Operations Inc

Consumer Services

Cornerstone (Ply Gem Holdings Inc)

Capital Goods

Craftworks Rest & Breweries Group Inc

1 unchanged sentence

14.0% PIK (14.0% Max PIK)

DEI Sales Inc

Consumer Durables & Apparel

13.0% PIK (13.0% Max PIK)

Diamond Resorts International Inc

Consumer Services

GFL Environmental Inc

Commercial & Professional Services

Hilding Anders

(g)(l)(n)(w)(z)

Consumer Durables & Apparel

13.0% PIK (13.0% Max PIK)

Hilding Anders

(g)(l)(n)(w)(z)

Consumer Durables & Apparel

12.0% PIK (12.0% Max PIK)

Hilding Anders

2 unchanged sentences

13.0% PIK (13.0% Max PIK)

Hilding Anders

(g)(l)(n)(w)(z)

Consumer Durables & Apparel

18.0% PIK (18.0% Max PIK)

Imagine Communications Corp

Media & Entertainment

12.5% PIK (12.5% Max PIK)

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Kenan Advantage Group Inc

Transportation

LifePoint Hospitals Inc

Health Care Equipment & Services

Nouryon (fka Akzo Nobel Specialty Chemicals)

PAREXEL International Corp

Pharmaceuticals, Biotechnology & Life Sciences

Plastipak Holdings Inc

Ply Gem Holdings Inc

Capital Goods

Quorum Health Corp

Health Care Equipment & Services

SRS Distribution Inc

Capital Goods

Team Health Inc

Health Care Equipment & Services

Vertiv Group Corp

Technology Hardware & Equipment

Commercial & Professional Services

Legends Hospitality LLC

Consumer Services

L+1,000 PIK (L+1,000 Max PIK)

Total Subordinated Debt

1 unchanged sentence

Asset Based Finance30.8%

801 5th Ave, Seattle, Private Equity

801 5th Ave, Seattle, Structure Mezzanine

8.0%, 3.0% PIK (3.0% Max PIK)

801 5th Ave, Seattle, Private Equity

Abacus JV, Private Equity

7 unchanged sentences

Transportation

Avida Holding AB, Common Stock

Diversified Financials

Bank of Ireland, Class B Credit Linked Floating Rate Note

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Byrider Finance LLC, Structured Mezzanine

Automobiles & Components

Byrider Finance LLC, Structured Mezzanine

Automobiles & Components

Byrider Finance LLC, Sub Note

Automobiles & Components

Callodine Commercial Finance LLC, 2L Term Loan A

Diversified Financials

Callodine Commercial Finance LLC, 2L Term Loan B

Diversified Financials

Capital Automotive LP, Private Equity

Capital Automotive LP, Structured Mezzanine

11.0% PIK (11.0% MAX PIK)

Global Jet Capital LLC, Preferred Stock

Commercial & Professional Services

Global Jet Capital LLC, Structured Mezzanine

34 unchanged sentences

15.0% PIK (15.0% Max PIK)

Global Jet Capital LLC, Preferred Stock

Commercial & Professional Services

Global Lending Services LLC, Private Equity

Diversified Financials

Global Lending Services LLC, Private Equity

Diversified Financials

Home Partners JV, Common Stock

Home Partners JV, Private Equity

(g)(l)(n)(x)(y)

Home Partners JV, Structured Mezzanine

2 unchanged sentences

11.0% PIK (11.0% Max PIK)

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Home Partners JV, Common Stock

Home Partners JV, Private Equity

(g)(l)(n)(x)(y)

Kilter Finance, Preferred Stock

6.0%, 6.0% PIK (6.0% Max PIK)

Kilter Finance, Private Equity

KKR Central Park Leasing Aggregator L.P., Partnership Interest

6 unchanged sentences

Technology Hardware & Equipment

Opendoor Labs Inc, 2L Term Loan

Orchard Marine Limited, Class B Common Stock

2 unchanged sentences

Transportation

Prime ST LLC, Private Equity

Prime ST LLC, Structured Mezzanine

5.0%, 6.0% PIK (6.0% Max PIK)

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Rampart CLO 2007 1A Class Subord.

Diversified Financials

Sofi Lending Corp, 2019-C R1

Sofi Lending Corp, Purchase Facility

Diversified Financials

2 unchanged sentences

Toorak Capital Funding LLC, Membership Interest

Diversified Financials

Toorak Capital LLC, Membership Interest

Diversified Financials

Toorak Capital Partners LLC, Private Equity

Wind River CLO Ltd.

4 unchanged sentences

Net Asset Based Finance

Strategic Credit Opportunities, LLC12.4%

Strategic Credit Opportunities Partners, LLC23.0%

Strategic Credit Opportunities Partners, LLC

Diversified Financials

Total Strategic Credit Opportunities Partners

Total Strategic Credit Opportunities Partners, LLC

Portfolio Company (a)

6 unchanged sentences

Commercial & Professional Services

AltEn, LLC, Membership Units

Amtek Global Technology Pte Ltd, Ordinary Shares

1 unchanged sentence

5,735,804,056

Amtek Global Technology Pte Ltd, Private Equity

Automobiles & Components

Amtek Global Technology Pte Ltd, Trade Claim

4 unchanged sentences

Capital Goods

Ardonagh Ltd, Ordinary Shares

Ardonagh Ltd, Preferred Stock

Arena Energy LP, Warrants

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim

5 unchanged sentences

Software & Services

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Aspect Software Inc, Warrant

Software & Services

AVF Parent LLC, Trade Claim

Belk Inc, Units

Bellatrix Exploration Ltd, Warrant

Byrider Finance LLC, Common Stock

Automobiles & Components

Borden (New Dairy Opco), Common Stock

Food, Beverage & Tobacco

Cengage Learning, Inc, Common Stock

2 unchanged sentences

Chisholm Oil & Gas Operating LLC, Series A Units

CSafe Global, Common Stock

Capital Goods

CTI Foods Holding Co LLC, Common Stock

Food, Beverage & Tobacco

DEI Sales Inc, Class A Units

Consumer Durables & Apparel

DEI Sales Inc, Series I Units

Consumer Durables & Apparel

DEI Sales Inc, Series II Units

Consumer Durables & Apparel

Directed LLC, Warrant

1 unchanged sentence

Empire Today LLC, Common Stock

FourPoint Energy LLC, Common Stock, Class CIIA Units

FourPoint Energy LLC, Common Stock, Class D Units

FourPoint Energy LLC, Common Stock, Class EII Units

FourPoint Energy LLC, Common Stock, Class EIII Units

Fronton BV, Common Stock

2 unchanged sentences

Technology Hardware & Equipment

Genesys Telecommunications Laboratories Inc, Class A1A5 Shares

Technology Hardware & Equipment

Genesys Telecommunications Laboratories Inc, Ordinary Shares

Technology Hardware & Equipment

Genesys Telecommunications Laboratories Inc, Ordinary Shares

Technology Hardware & Equipment

Genesys Telecommunications Laboratories Inc, Preferred Stock

2 unchanged sentences

Capital Goods

Hilding Anders, ARLE PIK Interest

(g)(l)(n)(w)(z)

Consumer Durables & Apparel

12.0% PIK (12.0% Max PIK)

Hilding Anders, Class A Common Stock

Consumer Durables & Apparel

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Hilding Anders, Class B Common Stock

12 unchanged sentences

Media & Entertainment

JHC Acquisition LLC, Common Stock

Capital Goods

Jones Apparel Holdings, Inc., Common Stock

Consumer Durables & Apparel

JSS Holdings Ltd, Net Profits Interest

Capital Goods

JW Aluminum Co, Common Stock

JW Aluminum Co, Preferred Stock

Keystone Australia Holdings Pty Limited, Residual Claim

Consumer Services

KKR BPT Holdings Aggregator LLC, Membership Interest

Diversified Financials

MB Precision Holdings LLC, Preferred Stock

Capital Goods

12.5% PIK (12.5% Max PIK)

Maverick Natural Resources, Common Stock

MB Precision Holdings LLC, Class A - 2 Units

Capital Goods

Miami Beach Medical Group LLC, Common Stock

Health Care Equipment & Services

Micronics Filtration Holdings Inc, Common Stock

4 unchanged sentences

Capital Goods

Mood Media Corp, Common Stock

Media & Entertainment

Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK

Capital Goods

3.0% PIK (3.0% Max PIK)

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK

Capital Goods

7.5% PIK (7.5% Max PIK)

NBG Home, Common Stock

Consumer Durables & Apparel

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Portfolio Company (a)

Nine West Holdings Inc, Common Stock

Consumer Durables & Apparel

North Haven Cadence Buyer Inc, Common Stock

Consumer Services

One Call Care Management Inc, Common Stock

Health Care Equipment & Services

4,370,566,806

One Call Care Management Inc, Preferred Stock A

Health Care Equipment & Services

One Call Care Management Inc, Preferred Stock B

Health Care Equipment & Services

9.0% PIK (9.0% Max PIK)

4 unchanged sentences

Household & Personal Products

Power Distribution Inc, Common Stock

Capital Goods

Proserv Acquisition LLC, Class A Common Units

Proserv Acquisition LLC, Class A Preferred Units

Quorum Health Corp, Common Stock

Health Care Equipment & Services

Quorum Health Corp, Trade Claim

Health Care Equipment & Services

Quorum Health Corp, Trust Initial Funding Units

Health Care Equipment & Services

Ridgeback Resources Inc, Common Stock

Rockport (Relay), Warrant

Consumer Durables & Apparel

Safariland LLC, Common Equity

Capital Goods

Sequential Brands Group Inc., Common Stock

2 unchanged sentences

Telecommunication Services

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Portfolio Company (a)

Sound United LLC, Class A Units

Consumer Durables & Apparel

Sound United LLC, Common Stock

Consumer Durables & Apparel

Sound United LLC, Series I Units

Consumer Durables & Apparel

Sound United LLC, Series II Units

Consumer Durables & Apparel

SSC (Lux) Limited S.a r.l., Common Stock

4 unchanged sentences

Software & Services

Sunnova Energy International Inc, Common Stock

Sweet Harvest Foods Management Co, Warrant

Food & Staples Retailing

ThermaSys Corp, Common Stock

(e)(f)(g)(n)(y)

Capital Goods

1 unchanged sentence

Capital Goods

Towergate, Preferred Stock

Towergate, Ordinary Shares

Trace3 Inc, Common Stock

2 unchanged sentences

Warren Resources Inc, Common Stock

Z Gallerie LLC, Common Stock

Zeta Interactive Holdings Corp, Preferred Stock, Series E - 1

6 unchanged sentences

TOTAL INVESTMENTS - 219.0%

LIABILITIES IN EXCESS OF OTHER

ASSETS(90.3%)

LIABILITIES IN EXCESS OF OTHER ASSETS(119.0%)

NET ASSETS 100%

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

Foreign currency forward contracts

1 unchanged sentence

Settlement Date

December 31, 2020

Unrealized Appreciation

7 unchanged sentences

JP Morgan Chase Bank

Security may be an obligation of one or more entities affiliated with the named company.

notes to consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2019

(in millions, except share amounts)

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a publicly disclosed base rate plus a

basis point spread.

As of December 31, 2019, the three-month London Interbank Offered Rate, or LIBOR or L, was 1.91%, the Euro Interbank Offered Rate, or EURIBOR, was (0.38)% and the U.S.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a

publicly disclosed base rate plus a basis point spread.

As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.24%, the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar

Offer Rate, or CDOR, was 0.48% and the U.S.

Prime Lending Rate, or Prime, was 3.25%.

means paid-in-kind.

PIK income accruals may be adjusted based on the fair value of the underlying investment.

PIK means paid-in-kind.

PIK income accruals may be adjusted based on the fair value

of the underlying investment.

Denominated in U.S.

1 unchanged sentence

Fair value determined by the Companys board of directors (see Note 8).

Security or portion thereof held within Locust Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the

term loan facility with JPMorgan Chase Bank, N.A.

(see Note 9).

Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with ING Capital LLC (see Note 9).

Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility

(see Note 9).

Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with ING Capital LLC (see Note 9).

Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured

Revolving Credit Facility (see Note 9).

Security or portion thereof held within FS KKR MM CLO 1 LLC (see Note 9).

Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9).

Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9).

Security or portion thereof was held within CCT Dublin Funding Limited

Position or portion thereof unsettled as of December 31, 2019.

consolidated financial statements.

FS KKR Capital Corp.

Consolidated Schedule of Investments (continued)

As of December 31, 2020

(in millions, except share amounts)

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 companys total assets.

As of December 31, 2019, 82.8% of the Companys total assets represented

qualifying assets.

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 companys total assets.

As of December 31, 2020, 73.4% of the

Companys total assets represented qualifying assets.

Listed investments may be treated as debt for GAAP or tax purposes.

3 unchanged sentences

Security held within IC Arches Investments LLC, a wholly-owned subsidiary of the Company.

Security held within IC Altus Investments, LLC, a wholly-owned subsidiary of the Company.

Security held within CCT Holdings, LLC, a wholly-owned subsidiary of the Company.

Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company.

Security held within FCF, LLC, a wholly-owned subsidiary of the Company.

Security is an unfunded commitment.

Reflects the stated spread at the time of commitment, but may not be the actual rate received upon

Reflects the stated spread at the time of commitment, but may not be the

actual rate received upon funding.

Asset is on non-accrual status.

Security is classified as Level 1 or 2 in the Companys fair value hierarchy (see Note 8).

notes to consolidated financial statements.

Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an affiliated

or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2020, the Company held investments in portfolio companies of which it is 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 was deemed to be an affiliated person as of December 31, 2020:

Portfolio Company

Fair Value at

Additions (1)

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

Senior Secured LoansFirst Lien

Borden (New Dairy Opco)

Borden Dairy Co (4)

HM Dunn Co Inc

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an affiliated person of a portfolio

exercise control over the management or policies of such portfolio company.

As of December 31, 2019, the Company held investments in portfolio companies of which it is deemed to be an affiliated person but is not deemed to

The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person for the year ended December 31, 2019:

Portfolio Company

5 unchanged sentences

Fair Value at

Senior Secured LoansFirst Lien

Aspect Software Inc (4)

Charlotte Russe Inc

HM Dunn Co Inc

MB Precision Holdings LLC

Micronics Filtration Holdings

One Call Care Management Inc

3 unchanged sentences

ThermaSys Corp

Z Gallerie LLC

Senior Secured LoansSecond Lien

3 unchanged sentences

Mood Media Corp

Rockport (Relay) (4)

Z Gallerie LLC

Asset Based Finance

Home Partners JV, Structured Mezzanine

Home Partners JV, Common Stock

Home Partners JV, Private Equity

Home Partners JV, Structured Mezzanine

Orchard Marine Limited, Class B Common Stock

3 unchanged sentences

ASG Technologies, Warrants

Aspect Software Inc, Common Stock (4)

Borden (New Dairy Opco), Common Stock

Charlotte Russe Inc, Common Stock

Fronton BV, Common Stock

notes to consolidated financial statements.

HM Dunn Co Inc, Preferred Stock, Series A

HM Dunn Co Inc, Preferred Stock, Series B

Home Partners of America Inc, Common Stock

Home Partners of America Inc, Warrant

JW Aluminum Co, Common Stock

JW Aluminum Co, Preferred Stock

MB Precision Holdings LLC, Class A - 2 Units

MB Precision Holdings LLC, Preferred Stock

Micronics Filtration Holdings Inc, Common

Micronics Filtration Holdings Inc, Preferred Stock, Series A (4)

Micronics Filtration Holdings Inc, Preferred Stock, Series B (4)

Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK (4)

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK (4)

consolidated financial statements.

FS KKR Capital Corp.

9 unchanged sentences

Fair Value at

HM Dunn Co Inc, Preferred Stock, Series A

HM Dunn Co Inc, Preferred Stock, Series B

Home Partners of America Inc, Common Stock

Home Partners of America Inc, Warrant

JW Aluminum Co, Common Stock (5)

JW Aluminum Co, Preferred Stock (5)

MB Precision Holdings LLC, Class A2 Units

MB Precision Holdings LLC, Preferred Stock

Mood Media Corp, Common Stock

Mood Media LLC, Class A Warrants

Mood Media LLC, Class B Warrants

Mood Media LLC, Class C Warrants

One Call Care Management Inc, Common Stock

5 unchanged sentences

Proserv Acquisition LLC, Class A Preferred Units

Rockport (Relay), Class A

Safariland LLC, Common Equity

2 unchanged sentences

Z Gallerie LLC, Common Stock

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.

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.

Interest and PIK income presented for the full year ended December 31, 2019.

The Company held this investment as of December 31, 2019 but it was not deemed to be an affiliated person of the portfolio

company or deemed to control the portfolio company as of December 31, 2019.

Transfers in or out have been presented at amortized cost.

The Company held this investment as of December 31, 2018 but it was deemed to control the portfolio company as of

December 31, 2018.

Transfers in or out have been presented at amortized cost.

The Company held this investment as of December 31, 2018 but it was not deemed to be an affiliated person of the portfolio

company or deemed to control the portfolio company as of December 31, 2018.

Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK

Gross reductions include decreases in the cost basis of investments resulting from principal collections related

Interest, PIK, fee and dividend income presented for the full year ended December 31, 2020.

The Company held this investment as of December 31, 2019 but it was not deemed to be an affiliated

person of the portfolio company as of December 31, 2019.

Transfers in or out have been presented at amortized cost.

notes to consolidated financial statements.

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 companys voting securities or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2020, the Company held

investments in one portfolio company of which it is deemed to be an affiliated person and deemed to control.

During the year ended December 31, 2020, the Company disposed of investments in one portfolio of which it was

deemed to be an affiliated person and deemed to control.

The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and

deemed to control as of December 31, 2020:

Portfolio Company

Fair Value at

Additions (1)

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

Senior Secured LoansFirst Lien

Advanced Lighting Technologies Inc

Amtek Global Technology Pte Ltd

Sound United LLC

consolidated financial statements.

FS KKR Capital Corp.

2 unchanged sentences

(in millions, except share amounts)

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 companys voting securities or it has the power to exercise control over the management or policies of such portfolio company.

As of December 31, 2019, the Company held investments in one portfolio company of

which it is deemed to be an affiliated person and deemed to control.

During the year ended December 31, 2019, the Company disposed of investments in one portfolio of which it was deemed to be an affiliated

person and deemed to control.

The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and deemed to control for the year ended

December 31, 2019:

Portfolio Company

2 unchanged sentences

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

Senior Secured LoansFirst Lien

Advanced Lighting Technologies Inc

Amtek Global Technology Pte Ltd

Senior Secured LoansSecond Lien

Amtek Global Technology Pte Ltd

Sound United LLC

Other Senior Secured Debt

Advanced Lighting Technologies Inc

JW Aluminum Co (4)

Subordinated Debt

3 unchanged sentences

Hilding Anders

Asset Based Finance

1 unchanged sentence

801 5th Ave, Seattle, Private Equity

Comet Aircraft S.a.r.l., Common Stock

Toorak Capital LLC, Membership Interest

Avida Holding AB, Common Stock

Kilter Finance, Preferred Stock

Kilter Finance, Private Equity

Prime ST LLC, Private Equity

Prime ST LLC, Structured Mezzanine

Toorak Capital Funding LLC, Membership Interest

Toorak Capital Partners LLC, Private Equity

Strategic Credit Opportunities Partners, LLC

Advanced Lighting Technologies Inc, Common

Advanced Lighting Technologies Inc,

Advanced Lighting Technologies Inc, Common Stock

Advanced Lighting Technologies Inc, Warrant

Amtek Global Technology Pte Ltd, Ordinary Shares

Amtek Global Technology Pte Ltd, Trade Claim

Amtek Global Technology Pte Ltd, Private Equity

Hilding Anders, ARLE PIK Interest

3 unchanged sentences

Hilding Anders, Equity Options

JW Aluminum Co, Common Stock (4)

notes to consolidated financial statements.

KKR BPT Holdings Aggregator LLC, Membership Interest

Sound United LLC, Class A Units

Sound United LLC, Common Stock

consolidated financial statements.

FS KKR Capital Corp.

6 unchanged sentences

Reductions (2)

Net Change in

(Depreciation)

Fair Value at

JW Aluminum Co, Preferred Stock (4)

KKR BPT Holdings Aggregator LLC, Membership Interest

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.

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.

Sound United LLC, Series I Units

Sound United LLC, Series II Units

Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK

Gross reductions include decreases in the cost basis of investments resulting from principal collections related

Interest, PIK and dividend income presented for the full year ended December 31, 2020.

The Company held this investment as of December 31, 2019 but it was not deemed to control the portfolio company as of

December 31, 2019.

Transfers in or out have been presented at amortized cost.

notes to consolidated financial statements.

consolidated financial statements.

FS KKR Capital Corp.

3 unchanged sentences

FS KKR Capital Corp.

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.

December 31, 2020, the Company had various wholly-owned subsidiaries, including special-purpose financing subsidiaries and subsidiaries through which it holds interests in portfolio companies.

The consolidated financial statements include both

the Companys accounts and the accounts of its wholly-owned subsidiaries as of December 31, 2020.

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.

As of December 31, 2021, the Company had various wholly-owned

subsidiaries, including special-purpose financing subsidiaries and subsidiaries through which it holds interests in portfolio companies.

The consolidated financial statements include both the Companys accounts and the accounts of its

wholly-owned subsidiaries as of December 31, 2021.

All intercompany transactions have been eliminated in consolidation.

Certain of the Companys consolidated subsidiaries are subject to

Certain of the Companys consolidated subsidiaries are subject to U.S.

federal and state income taxes.

The Companys investment objectives are to generate current income and, to a lesser

extent, long-term capital appreciation.

The Companys 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.

In addition, a portion of the Companys 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.

The Company is externally managed by FS/KKR Advisor, LLC,

or the Advisor, pursuant to an investment advisory agreement, dated as of December 20, 2018, or the investment advisory agreement.

On April 9, 2018, GSO / Blackstone Debt Funds Management LLC, or GDFM, resigned as the investment sub-adviser to the Company and terminated the investment sub-advisory agreement, or the investment sub-advisory agreement, between FB

Income Advisor, LLC, or FB Advisor, and GDFM, effective April 9, 2018.

In connection with GDFMs resignation as the investment sub-adviser to the Company, on April 9, 2018, the Company entered

into an investment advisory agreement, or the prior investment advisory agreement, with the Advisor.

The prior investment advisory agreement replaced the amended and restated investment advisory agreement, dated July 17, 2014, or the FB Advisor

investment advisory agreement, by and between the Company and FB Advisor.

On December 19, 2018, the Company completed its

acquisition, or the 2018 Merger, of Corporate Capital Trust, Inc., or CCT, pursuant to that certain Agreement and Plan of Merger, or the 2018 Merger Agreement, dated as of July 22, 2018, by and among the Company, CCT, IC Acquisition, Inc., a

former wholly-owned subsidiary of the Company, or Merger Sub, and the Advisor.

See Note 13 for a discussion of the 2018 Merger.

On June 15, 2020, the Company filed Articles of Amendment to its Articles of Incorporation, or the Reverse Stock Split Amendment,

with the State Department of Assessments and Taxation of the State of Maryland to effect a 4 to 1 reverse split of the Companys shares of common stock, or the Reverse Stock Split.

The Reverse Stock Split became effective in accordance with the

terms of the Reverse Stock Split Amendment on June 15, 2020.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Principal Business and

Organization (continued)

The Reverse Stock Split affected all shareholders uniformly and did not alter any

shareholders percentage interest in the Companys equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share.

In that regard, no fractional shares were issued in connection with the

Reverse Stock Split.

Shareholders of record who would have otherwise been entitled to receive a fractional share instead received a cash payment based on the closing price of the Companys common stock as reported on the NYSE as of

June 15, 2020.

A summary of the Companys weighted average number of shares of common stock outstanding and earnings per share after adjusting for the Reverse Stock Split is as follows:

Weighted average number of shares of common stock outstanding (as previously reported)

Weighted average number of shares of common stock outstanding (as adjusted)

Net investment income per share (as previously reported)

Net investment income per share (as adjusted)

Earnings per share (as previously reported)

Earnings per share (as adjusted)

On November 23, 2020, the Company entered into an Agreement and Plan of Merger, or the 2020 Merger

Agreement, with FS KKR Capital Corp II., a Maryland corporation, or FSKR and, together with the Company, the Funds, Rocky Merger Sub, Inc., a Maryland corporation and wholly-owned subsidiary of the Company, or Merger Sub, and the Advisor.

Merger Agreement provides that, subject to the conditions set forth in the 2020 Merger Agreement, Merger Sub will merge with and into FSKR, with FSKR continuing as the surviving company and as a wholly-owned subsidiary of the Company, or the First

Merger, and, immediately thereafter, FSKR will merge with and into the Company, with the Company continuing as the surviving company or, together with the First Merger, the 2021 Merger.

See Note 14 for additional information.

The Companys investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation.

Companys 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

In addition, a portion of the Companys 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.

The Company is externally managed by FS/KKR Advisor, LLC, or the Advisor, pursuant to an investment advisory

agreement, dated as of June 16, 2021, or the investment advisory agreement.

Prior to entering into the investment advisory agreement, the Company was a party to an investment advisory agreement, dated as of December 20, 2018, with the

Advisor, or the prior investment advisory agreement, which remained in effect until June 16, 2021.

On June 15, 2020, the Company

filed Articles of Amendment to its Articles of Incorporation, or the Reverse Stock Split Amendment, with the State Department of Assessments and Taxation of the State of Maryland to effect a 4 to 1 reverse split of the Companys shares of

common stock, or the Reverse Stock Split.

The Reverse Stock Split became effective in accordance with the terms of the Reverse Stock Split Amendment on June 15, 2020.

The Reverse Stock Split affected all shareholders uniformly and did not alter any shareholders percentage interest in the Companys

equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share.

In that regard, no fractional shares were issued in connection with the Reverse Stock Split.

Shareholders of record who would have

otherwise been entitled to receive a fractional share instead received a cash payment based on the closing price of the Companys common stock as reported on the NYSE as of June 15, 2020.

On June 16, 2021, the Company completed its acquisition, or the 2021 Merger, of FS KKR Capital Corp.

II, or FSKR, pursuant to that certain

Agreement and Plan of Merger, or the 2020 Merger Agreement, dated as of November 23, 2020, by and among the Company, FSKR, Rocky Merger Sub, Inc., a former wholly-owned subsidiary of the Company, or Merger Sub, and the Advisor.

See Note 13 for

a discussion of the 2021 Merger.

Summary of Significant Accounting Policies

Basis of Presentation:

The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States

of America, or GAAP.

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 Topic 946, Financial ServicesInvestment 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 accompanying audited consolidated financial statements of the Company have been prepared in accordance with

accounting principles generally accepted in the United States of America, or GAAP.

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 Topic 946, Financial ServicesInvestment 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.

Use of Estimates:

The preparation of the 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.

The preparation of

the 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.

Cash and Cash Equivalents:

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.

Valuation of Portfolio Investments:

The Company determines the net asset value of its investment

portfolio each quarter.

Securities are valued at fair value as determined in good faith by the Companys board of directors.

In connection with that determination, the Advisor provides the Companys board of directors with 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 valuation services.

Accounting Standards Codification 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

FS KKR Capital Corp.

3 unchanged sentences

Policies (continued)

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.

Cash and Cash Equivalents:

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.

Valuation of Portfolio Investments:

The Company determines the net asset value of its investment portfolio each quarter.

Securities are

valued at fair value as determined in good faith by the Companys board of directors.

In connection with that determination, the Advisor provides the Companys board of directors with 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 valuation services.

Accounting Standards Codification 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, defined as observable inputs such as quoted prices in active markets;

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.

With respect to investments for which market quotations are not

readily available, the Company undertakes a multi-step valuation process each quarter, as described below:

the Companys quarterly fair valuation process begins by the Advisor providing financial and operating information with respect to each portfolio

company or investment to the Companys independent third-party valuation service providers;

the Companys independent third-party valuation service providers review this information, along with other public and private information, and

provide the Advisor with a valuation range for each portfolio company or investment;

the Advisor then discusses the independent third-party valuation service providers valuation ranges and provides the valuation committee of the

board of directors, or the valuation committee, with a valuation recommendation for each investment, along with supporting materials;

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.

With respect to investments for which market quotations are not readily available, the Company undertakes a multi-step valuation process each

quarter, as described below:

the Companys quarterly fair valuation process begins by the Advisor providing financial and operating

information with respect to each portfolio company or investment to the Companys independent third-party valuation service providers;

the Companys independent third-party valuation service providers review this information, along with other

public and private information, and provide the Advisor with a valuation range for each portfolio company or investment;

the Advisor then discusses the independent third-party valuation service providers valuation ranges and

provides the valuation committee of the board of directors, or the valuation committee, with a valuation recommendation for each investment, along with supporting materials;

preliminary valuations are then discussed with the valuation committee;

the Companys valuation committee reviews the preliminary valuations and the Advisor, together with the Companys independent third-party

valuation service providers and, if applicable, supplements the preliminary valuations to reflect any comments provided by the valuation committee;

following the completion of its review, the Companys valuation committee recommends that the Companys board of directors approves the fair

valuations determined by the valuation committee;

the Companys board of directors discusses the valuations and determines the fair value of each such investment in the Companys portfolio in

good faith based on various statistical and other factors, including the input and recommendation of the Advisor, the valuation committee and the Companys independent third-party valuation service providers.

the Companys valuation committee reviews the preliminary valuations and the Advisor, together with the

Companys independent third-party valuation service providers and, if applicable, supplements the preliminary valuations to reflect any comments provided by the valuation committee;

following the completion of its review, the Companys valuation committee recommends that the Companys

board of directors approves the fair valuations determined by the valuation committee;

the Companys board of directors discusses the valuations and determines the fair value of each such

investment in the Companys portfolio in good faith based on various statistical and other factors, including the input and recommendation of the Advisor, the valuation committee and the Companys independent third-party valuation service

Determination of fair value involves subjective judgments and estimates.

Accordingly, these notes to the Companys audited

consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on the Companys consolidated financial statements.

In making its determination of fair value,

the Companys board of directors may use any approved independent third-party pricing or valuation services.

However, the Companys board of directors 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 obtained from the Advisor or any approved independent third-party valuation or pricing service that the Companys board of directors deems to be reliable in determining fair

value under the circumstances.

Below is a description of factors that the Advisor, any approved independent third-party valuation services and the Companys board of directors may consider when determining the fair value of the Companys

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 Company may

incorporate these factors into discounted cash flow models to arrive at fair value.

Other factors that may be considered include the borrowers 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 Companys debt investments.

Accordingly, these notes to the

Companys audited consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on the Companys consolidated financial statements.

In making its

determination of fair value, the Companys board of directors may use any approved independent third-party pricing or valuation services.

However, the Companys board of directors is not required to determine fair value in accordance with

the valuation provided by any single

FS KKR Capital Corp.

3 unchanged sentences

Policies (continued)

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.

source, and may use any relevant data, including information obtained from the Advisor or any approved independent third-party valuation or pricing service that the Companys board of

directors deems to be reliable in determining fair value under the circumstances.

Below is a description of factors that the Advisor, any approved independent third-party valuation services and the Companys board of directors may consider when

determining the fair value of the Companys investments.

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 Company may incorporate these factors into discounted cash flow models to arrive at fair value.

Other factors that may be considered include the borrowers 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 Companys 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.

5 unchanged sentences

take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items.

Advisor, any approved independent third-party valuation services and the Companys board of directors may also consider private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations

implied by third-party investments in the portfolio companies or industry practices in determining fair value.

The Advisor, any approved independent third-party valuation services and the Companys board of directors may also consider the size

and scope of a portfolio company and its specific strengths and weaknesses, and may apply discounts or premiums, where and as appropriate, due to the higher (or lower) financial risk and/or the smaller size of portfolio companies relative to

comparable firms, as well as such other factors as the Companys board of directors, in consultation with the Advisor and any approved independent third-party valuation services, if applicable, may consider relevant in assessing fair value.

Generally, the value of the Companys 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.

When the Company receives 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 Companys board of directors subsequently values these warrants or other equity securities received at their fair value.

The Company values certain investments at their net asset value in accordance with practical expedient under ASC Topic 820.

The fair values of the Companys investments are determined in good faith by the Companys board of directors.

The Companys board of directors is responsible for the valuation of the

Companys portfolio investments at fair value as determined in good faith pursuant to the Companys valuation policy and consistently applied valuation process.

The Companys board of directors has delegated day-to-day responsibility for implementing its valuation policy to the Advisor, and has authorized the Advisor to utilize independent third-party valuation and pricing

services that have been approved by the Companys board of directors.

The valuation committee is responsible for overseeing the Advisors implementation of the valuation process.

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 (LLC) and limited

partnership (LP) investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

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 Companys policy is to place investments on non-accrual status when there is reasonable doubt that interest income will be collected.

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.

Payments received on non-accrual investments may be recognized as

income or applied to principal depending upon the collectability of the remaining principal and interest.

Non-accrual investments may be restored to accrual status when principal and interest become current

and are likely to remain current based on the Companys judgment.

The Advisor, any

approved independent third-party valuation services and the Companys board of directors may also consider private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by

third-party investments in the portfolio companies or industry practices in determining fair value.

The Advisor, any approved independent third-party valuation services and the Companys board of directors may also consider the size and scope

of a portfolio company and its specific strengths and weaknesses, and may apply discounts or premiums, where and as appropriate, due to the higher (or lower) financial risk and/or the smaller size of portfolio companies relative to comparable firms,

as well as such other factors as the Companys board of directors, in consultation with the Advisor and any approved independent third-party valuation services, if applicable, may consider relevant in assessing fair value.

Generally, the value

of the Companys 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.

When the Company receives 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.

Companys board of directors subsequently values these warrants or other equity securities received at their fair value.

values certain investments at their net asset value in accordance with practical expedient under ASC Topic 820.

The fair values of the

Companys investments are determined in good faith by the Companys board of directors.

The Companys board of directors is responsible for the valuation of the Companys portfolio investments at fair value as determined in good

faith pursuant to the Companys valuation policy and consistently applied valuation process.

The Companys board of directors has delegated day-to-day

responsibility for implementing its valuation policy to the Advisor, and has authorized the Advisor to utilize independent third-party valuation and pricing services that have been approved by the Companys board of directors.

The valuation

committee is responsible for overseeing the Advisors implementation of the valuation process.

Derivative Instruments:

Companys derivative instruments include foreign currency forward contracts and cross currency swaps.

The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated

FS KKR Capital Corp.

3 unchanged sentences

Policies (continued)

Loan origination fees, original issue discount and market discount are capitalized and

the Company amortizes such amounts as interest income over the respective term of the loan or security.

Upon the prepayment of a loan or security, any unamortized loan origination fees and original issue discount are recorded as interest income.

financial statements.

Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result, the Company presents changes in fair value through net change in

unrealized appreciation (depreciation) on derivative instruments in the consolidated statements of operations.

Realized gains and losses of the derivative instruments are included in net realized gains (losses) on derivative instruments in the

consolidated statements of operations.

Revenue Recognition:

Security transactions are accounted for on the trade date.

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 (LLC) and limited partnership (LP) investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

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 Companys 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.

there is reasonable doubt that the Company will receive any previously accrued interest, then the accrued interest will be written-off.

Payments received on non-accrual

investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest.

Non-accrual investments may be restored to accrual status when

principal and interest become current and are likely to remain current based on the Companys judgment.

Loan origination fees,

original issue discount and market discount are capitalized and the Company amortizes such amounts as interest income over the respective term of the loan or security.

Upon the prepayment of a loan or security, any unamortized loan origination fees

and original issue discount are recorded as interest income.

Structuring and other non-recurring upfront fees are recorded as fee income when earned.

The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.

For the years ended December 31, 2020 and 2019, the Company recognized $16 and $20, respectively, in structuring fee revenue and

included such revenue in the fee income line item on its consolidated statement of operations.

Net Realized Gains or

Losses, Net Change in Unrealized Appreciation or Depreciation and Net Change in Unrealized Gains or Losses on Foreign Currency:

The Company records prepayment premiums on loans and

securities as fee income when it receives such amounts.

For the years ended December 31, 2021, 2020 and 2019, the Company recognized

$55, $16 and $20, respectively, in structuring fee revenue and included such revenue in the fee income line item on its consolidated statement of operations.

Net Realized Gains or Losses, Net Change in Unrealized Appreciation or Depreciation and Net Change in Unrealized Gains or Losses on Foreign

Gains or losses on the sale of investments are calculated by using the specific identification method.

measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering

unamortized fees.

Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are

Net change in unrealized gains or losses on foreign currency reflects the change in the value of receivables or accruals during the reporting period due to the impact of foreign currency fluctuations.

The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the

amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized fees.

Net change in unrealized appreciation or depreciation reflects the change in portfolio

investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Net change in unrealized gains or losses on foreign currency reflects the change in the value

of receivables or accruals during the reporting period due to the impact of foreign currency fluctuations.

Capital Gains Incentive

Pursuant to the terms of the investment 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 investment advisory agreement).

This fee equals 20.0% of the Companys incentive fee capital gains, which shall equal the realized capital gains of Corporate Capital Trust, Inc., or CCT, (as

predecessor-by-merger to the Company), 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.

Pursuant to the terms of the investment 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 investment advisory agreement).

This fee equals 20.0% of the Companys incentive fee capital gains, which shall equal both CCTs and the

Companys realized capital gains (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 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 Advisor if the Companys entire portfolio was liquidated at its fair value as of the balance sheet date even

though the Advisor 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 investment advisory agreement, the Advisor may also be entitled to receive a subordinated incentive fee on income.

subordinated incentive fee on income under the investment advisory agreement, which is calculated and payable quarterly in arrears, equals 20.0% of the Companys 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 Companys net assets, equal to 1.75% per quarter, or an annualized hurdle rate of

As a result, the Advisor will not earn this incentive fee for any quarter until the Companys pre-incentive fee net investment income for such quarter exceeds the hurdle rate of

Once the Companys pre-incentive fee net investment income in any quarter exceeds the hurdle rate, the Advisor 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 Companys pre-incentive fee net investment income for such quarter equals 2.1875%, or 8.75% annually, of net assets.

Thereafter, the Advisor will be entitled to receive 20.0% of pre-incentive fee net investment income.

The subordinated incentive fee on

income is subject to a cap equal to (i) 20.0% of the per share pre-incentive fee return for the then-current and eleven preceding calendar quarters minus the cumulative

per share incentive fees accrued and/or payable for the eleven preceding calendar quarters multiplied by (ii) the weighted average number of shares outstanding during the calendar quarter (or any portion thereof) for which

the subordinated incentive fee on income is being calculated.

The definitions of per share pre-incentive fee return and per share incentive fees under the investment advisory

agreement take into account the historic per share pre-incentive fee return of both the Company and CCT, together with the historic per share incentive fees paid by both the Company and CCT.

purpose of calculating the per share pre-incentive fee return, any unrealized appreciation or depreciation recognized as a result of the purchase accounting for the 2018 Merger is

This accrual reflects the incentive fees that would be payable to the Advisor if the Companys entire portfolio was liquidated at its fair value as of the balance sheet date even though the Advisor is not entitled

to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.

FS KKR Capital Corp.

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Policies (continued)

Subordinated Income Incentive Fee:

Pursuant to the terms of the investment

advisory agreement, the Advisor may also be entitled to receive a subordinated incentive fee on income.

The subordinated incentive fee on income under the investment advisory agreement, which is calculated and payable quarterly in arrears, equals

17.5% of the Companys 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 Companys net assets, equal to 1.75% per quarter, or an annualized hurdle rate of 7.0%.

As a result, the Advisor will not earn this incentive fee for any quarter until the

Companys pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.75%.

Once the Companys pre-incentive fee

net investment income in any quarter exceeds the hurdle rate, the Advisor 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 Companys pre-incentive fee net investment income for such

quarter equals 2.12%, or 8.48% annually, of net assets.

Thereafter, the Advisor will be entitled to receive 17.5% of pre-incentive fee net investment income.

See Note 4 for a discussion of the

subordinated incentive fee on income under the prior investment advisory agreement.

Income Taxes:

The Company 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.

To qualify for and maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements, as well as distribute to its stockholders, for each tax year, at least 90% of its investment company taxable income, which is generally the

Companys net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses, determined without regard to any deduction for distributions paid.

As a RIC, the Company will not have

to pay corporate-level U.S.

The Company 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.

income, which is generally the Companys net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses, determined without regard to any deduction for distributions paid.

As a RIC, the Company will not have to pay corporate-level U.S.

federal income taxes on any income that it distributes to its stockholders.

The Company intends to make distributions in an amount sufficient to qualify for and maintain its RIC tax status each tax year and to not pay any

The Company intends to make distributions in an amount sufficient to qualify for and maintain its RIC tax

status each tax year and to not pay any U.S.

federal income taxes on income so distributed.

The Company is also subject to nondeductible federal excise taxes if it does not distribute in respect of each calendar year an amount at least equal to the sum of 98% of net ordinary income, 98.2%

of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no U.S.

The Company is also subject to nondeductible federal excise taxes if it does not distribute in respect of each calendar year an amount at least equal to the

sum of 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no U.S.

federal income taxes.

The Company accrued $10, $7 and $7 in estimated excise taxes payable in respect of income received

during the years ended December 31, 2020, 2019 and 2018, respectively.

During the years ended December 31, 2020, 2019, and 2018, the Company paid $7, $9 and $6, respectively, in excise and other taxes.

The Company evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with

accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the Companys consolidated financial statements.

Recognition of a tax benefit or

liability with respect to an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities.

The Company recognizes interest and penalties, if any, related to

unrecognized tax liabilities as income tax expense in its consolidated statements of operations.

The Company accrued $12, $10 and $7 in estimated excise

taxes payable in respect of income received during the years ended December 31, 2021, 2020 and 2019, respectively.

During the years ended December 31, 2021, 2020, and 2019, the Company paid $9, $7 and $9, respectively, in excise and other

The Company evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in

connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the Companys consolidated financial statements.

Recognition of a

tax benefit or liability with respect to an uncertain tax position is required only when the position is more likely than not to be sustained assuming examination by taxing authorities.

The Company recognizes interest and penalties, if

any, related to unrecognized tax liabilities as income tax expense in its consolidated statements of operations.

During the years ended December 31, 2021, 2020 and 2019, the Company did not incur any interest or penalties.

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Distributions to the Companys stockholders are recorded as of the record date.

Subject to the discretion of

the Companys board of directors and applicable legal restrictions, the Company intends to declare and pay such distributions on a quarterly basis.

Subject to the discretion of the Companys board of directors and applicable legal restrictions, the Company intends to declare and pay such distributions on a

quarterly basis.

Net realized capital gains, if any, are distributed or deemed distributed at least annually.

Reclassifications:

Certain amounts in the consolidated financial statements as of and for the years ended

December 31, 2019 and 2018 have been reclassified to conform to the classifications used to prepare the consolidated financial statements for the year ended December 31, 2020.

Certain amounts in the consolidated financial statements as of and for the years ended December 31, 2020 and 2019 have been reclassified to conform to the classifications used to prepare the consolidated financial statements for the year

ended December 31, 2021.

Recent Accounting Pronouncements:

In August 2018, the FASB issued Accounting Standards Update

2018-13, Fair Value MeasurementDisclosures FrameworkChanges to Disclosure Requirements of Fair Value Measurement (Topic 820), or ASU 2018-13.

ASU 2018-13 introduces new fair value disclosure requirements and eliminates and modifies certain existing fair value disclosure requirements.

ASU 2018-13 is effective for fiscal

years, and interim periods within those fiscal years, beginning after December 15, 2019.

The Company implemented ASU 2018-13 during the year ended December 31, 2020, and it did not have a significant

impact on the Companys disclosure over fair value.

In March 2020, the FASB issued ASU

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by reference rate reform if certain criteria are met.

The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022.

The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging

relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging

relationship.

The Company is currently evaluating the impact of adopting ASU 2020-04 on its consolidated financial statements.

The amendments apply only to contracts, hedging

FS KKR Capital Corp.

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Policies (continued)

Derivative Instruments:

The Companys derivative instruments include foreign

currency forward contracts and cross currency swaps.

The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated financial statements.

Derivative contracts entered into by the Company are not

designated as hedging instruments, and as a result, the Company presents changes in fair value through net change in unrealized appreciation (depreciation) on derivative instruments in the consolidated statements of operations.

Realized gains and

losses of the derivative instruments are included in net realized gains (losses) on derivative instruments in the consolidated statements of operations.

relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022.

The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging

relationship.

The Company is currently evaluating the impact of adopting ASU 2020-04 on its consolidated financial statements.

Share Transactions

Below is a summary of transactions with respect

to shares of the Companys common stock during the years ended December 31, 2020, 2019 and 2018:

summary of transactions with respect to shares of the Companys common stock during the years ended December 31, 2021, 2020 and 2019:

Year Ended December 31,

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The number of shares repurchased has been adjusted to reflect the Reverse Stock Split as discussed below.

During the year ended December 31, 2020, the administrator for the Companys distribution reinvestment plan, or DRP, purchased

1,504,389 shares of common stock in the open market at an average price per share of $15.84 (totaling $24) pursuant to the DRP, and distributed such shares to participants in the DRP.

During the year ended December 31, 2019, the administrator

for the DRP purchased 1,069,720 shares of common stock in the open market at an average price per share of $23.90 (totaling $26) pursuant to the DRP, and distributed such shares to participants in the DRP.

During the period from January 1, 2021

to February 26, 2021, the administrator for the DRP purchased 275,642 shares of common stock in the open market at an average price per share of $17.21 (totaling $5) pursuant to the DRP, and distributed such shares to participants in the DRP.

Issuance of common stock for the 2021 Merger.

Shares were issued at fair value of FSK common stock at the merger

During the year ended December 31, 2021, the administrator for the Companys distribution reinvestment

plan, or DRP, purchased 1,321,614 shares of common stock in the open market at an average price per share of $21.08 (totaling $28) pursuant to the DRP, and distributed such shares to participants in the DRP.

During the year ended December 31,

2020, the administrator for the DRP purchased 1,504,389 shares of common stock in the open market at an average price per share of $15.84 (totaling $24) pursuant to the DRP, and distributed such shares to participants in the DRP.

During the period

from January 1, 2022 to February 25, 2022, the administrator for the DRP purchased 595,933 shares of common stock in the open market at an average price per share of $21.68 (totaling $13) pursuant to the DRP, and distributed such shares to

participants in the DRP.

For additional information regarding the terms of the DRP, see Note 5.

Acquisition of FSKR

In accordance with the terms of the 2020 Merger Agreement, at the time of the transactions contemplated by the 2020 Merger Agreement, each

outstanding share of CCT common stock was converted into the right to receive 2.3552 shares of the Companys common stock (with CCT stockholders receiving cash in lieu of fractional shares of the Companys common

As a result, the Company issued an aggregate of 292,324,670 shares of its common stock to former CCT stockholders.

Share and exchange ratio amounts in the foregoing do not reflect the Reverse Stock Split as discussed below.

February 2018 Share Repurchase Program

In February 2018, the Companys board of directors authorized a stock repurchase program.

Under the program, the Company was permitted to repurchase up to $50 in the aggregate of its outstanding

common stock in the open market at prices below the then-current net asset value per share.

During the year ended December 31, 2018, the Company repurchased 1,642,837 shares of common stock pursuant to the share repurchase program at an

average price per share (inclusive of commissions paid) of $30.44 (totaling $50).

The program has concluded since the aggregate repurchase amount that was approved by the Companys board of directors has been expended.

FS Investment Corporation

outstanding share of FSKR common stock was converted into the right to receive 0.9498 shares of the Companys common stock.

As a result, the Company issued an aggregate of approximately 161,374,028 shares of its common stock to former FSKR

stockholders.

September 2021 Share Repurchase Program

In November 2020, the Companys board of directors authorized a stock repurchase program, which went into effect in September 2021

following the consummation of the 2021 Merger.

Under the program, the Company may repurchase up to $100 in the aggregate of its outstanding common stock in the open market at prices below the then-current net asset value per share.

manner, price and amount of any share repurchases was determined by the Company based upon the evaluation of economic and market conditions, the Companys stock price, applicable legal and regulatory requirements and other factors.

is expected to be in effect for one year from the effective date, unless extended, or until the aggregate repurchase amount that has been approved by the Companys board of directors has been expended, or the plan otherwise terminates pursuant

to its terms.

The program does not require the Company to repurchase any specific number of shares and the Company cannot assure stockholders that any shares will be repurchased under the program.

The program may be suspended, extended, modified or

discontinued at any time.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in thousands, except share and per share amounts)

(in millions, except share and per share amounts)

Share Transactions (continued)

During the year ended December 31, 2021, the Company repurchased 586,902 shares of

common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $21.44 (totaling $12).

During the period from January 1, 2022 to February 24, 2022, the Company repurchased 268,457 shares of common stock pursuant to the share

repurchase program at an average price per share (inclusive of commissions paid) of $21.79 (totaling $6).

December 2018 Share Repurchase Program

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permitted to repurchase up to $200 in the aggregate of its outstanding common stock in the open market at prices below the then-current net asset value per share.

During the year ended December 31, 2020, the Company repurchased 2,823,750 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions

paid) of $16.71 (totaling $47).

During the year ended December 31, 2019, the Company repurchased 6,287,919 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $24.30

(totaling $153).

During the year ended December 31, 2020, the Company repurchased 2,823,750 shares of common stock pursuant to the share repurchase program

at an average price per share (inclusive of commissions paid) of $16.71 (totaling $47).

During the year ended December 31, 2019, the Company repurchased 6,287,919 shares of common stock pursuant to the share repurchase program at an average

price per share (inclusive of commissions paid) of $24.30 (totaling $153).

The program has concluded since the aggregate repurchase amount that was approved by the Companys board of directors has been expended.

Reverse Stock Split and Fractional Shares

As a result of the Reverse Stock

Split, which was effective on June 15, 2020, every four shares of the Companys common stock issued and outstanding were automatically combined into one share of the Companys common stock, and the number of outstanding shares of the

Companys common stock was reduced from approximately 495.0 million to approximately 123.75 million as of June 15, 2020.

As a result of the Reverse Stock Split, which was effective on June 15, 2020, every four shares of the Companys common stock issued

and outstanding were automatically combined into one share of the Companys common stock, and the number of outstanding shares of the Companys common stock was reduced from approximately 495.0 million to approximately

123.75 million as of June 15, 2020.

The Reverse Stock Split did not modify the rights or preferences of the Companys common stock.

Company also filed a separate Articles of Amendment to Articles of Incorporation with the State Department of Assessments and Taxation of the State of Maryland to provide that there would be no change in the par value of $0.001 per share as a result

of the Reverse Stock Split.

The Reverse Stock Split affected all shareholders uniformly and did not alter any

shareholders percentage interest in the Companys equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share.

In that regard, no fractional shares were issued in connection with the

Reverse Stock Split.

June 15, 2020.

The Company also filed a separate Articles of Amendment to Articles of Incorporation with the State

Department of Assessments and Taxation of the State of Maryland to provide that there would be no change in the par value of $0.001 per share as a result of the Reverse Stock Split.

The Reverse Stock Split affected all shareholders uniformly and did not alter any shareholders percentage interest in the Companys

equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share.

In that regard, no fractional shares were issued in connection with the Reverse Stock Split.

Shareholders of record who would have

otherwise been entitled to receive a fractional share instead received a cash payment based on the closing price of the Companys common stock as reported on the NYSE as of June 15, 2020.

Related Party Transactions

Compensation of the Investment Adviser

Pursuant to the investment advisory

agreement, the Advisor is entitled to a base management fee calculated at an annual rate of 1.50% of the average weekly value of the Companys gross assets excluding cash and cash equivalents (gross assets equal the total assets of the Company

as set forth on the Companys consolidated balance sheets) and an incentive fee based on the Companys 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 Advisor reduced (by permanent waiver) the annual base management fee payable under the investment advisory agreement from 1.5% to 1.0% on all assets financed using leverage over 1.0x debt-to-equity.

Compensation of the

Investment Adviser

Pursuant to the investment advisory agreement, the Advisor is entitled to a base management fee calculated at an

annual rate of 1.50% of the average weekly value of the Companys gross assets excluding cash and cash equivalents (gross assets equal the total assets of the Company as set forth on the Companys consolidated balance sheets) and an

incentive fee based on the Companys 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 Advisor reduced

(by permanent waiver) the annual base management fee payable under the investment 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.

1 unchanged sentence

interest and may be taken in such other quarter as the Advisor determines.

The prior investment advisory agreement had substantially similar terms, except that cash and cash equivalents were not excluded from gross assets.

See Note 2 for a

discussion of the capital gains and subordinated income incentive fees that the Advisor may be entitled to under the investment advisory agreement.

Pursuant to the FB Advisor investment advisory agreement, which was in effect until April 9, 2018, FB Advisor was entitled to an annual base management fee equal to 1.75% of the average value of

the Companys gross assets (gross assets equal the total assets of the Company as set forth on the Companys consolidated balance sheets) and an incentive fee based on the Companys performance.

FB Advisor had agreed, effective

October 1, 2017, to (a) waive a portion of the base management fee to which it was entitled under the FB Advisor investment advisory agreement so that the fee received equaled 1.50% of the average value of the Companys gross assets

and (b) continue to calculate the subordinated incentive fee on income to which it was entitled under the FB Advisor investment advisory agreement as if the base management fee was 1.75% of the average value of the Companys gross

The prior investment advisory agreement had substantially similar terms as the investment advisory agreement, except that the investment advisory agreement amended the prior

investment advisory agreement to (i) reduce the Companys income incentive fee rate from 20% to 17.5%;

and (ii) remove the total return lookback provision applicable to the subordinated incentive fee on income from the prior

investment advisory agreement.

Under the prior investment advisory agreement, the subordinated incentive fee on income was subject to a cap equal to (i) 20.0% of the per share pre-incentive fee

return for the then-current and eleven preceding calendar quarters minus the cumulative per share incentive fees accrued and/or payable for the eleven preceding

FS KKR Capital Corp.

3 unchanged sentences

Transactions (continued)

Pursuant to the investment sub-advisory agreement, GDFM was entitled to receive 50% of all management and incentive fees payable to FB

Advisor under the FB Advisor investment advisory agreement with respect to each year.

On April 9, 2018, the Company

entered into an administration agreement with the Advisor, or the administration agreement, which replaced an administration agreement with FB Advisor, or the FB Advisor administration agreement.

Pursuant to the administration agreement, the Advisor

oversees the Companys 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.

calendar quarters multiplied by (ii) the weighted average number of shares outstanding during the calendar quarter (or any portion thereof) for which the subordinated incentive fee on income

was being calculated.

The definitions of per share pre-incentive fee return and per share incentive fees under the prior investment advisory agreement took into account the historic per

share pre-incentive fee return of both the Company and CCT, together with the historic per share incentive fees paid by both the Company and CCT.

For the purpose of calculating the per share pre-incentive fee return, any unrealized appreciation or depreciation recognized as a result of the purchase accounting for the Companys acquisition of CCT was excluded.

See Note 2 for a discussion of

the capital gains and subordinated income incentive fees that the Advisor may be entitled to under the investment advisory agreement.

connection with the entry into the investment advisory agreement, the Advisor has agreed to waive income incentive fees in the amount of $15 per quarter for the first six full fiscal quarters of operations following the closing of the 2021 Merger,

commencing on July 1, 2021, for a total waiver of $90.

In addition, the Advisor has agreed to exclude from the calculation of the subordinated incentive fee on income 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 acquired FSKR investments determined in accordance with Accounting Standards Codification Topic 805-50, Business

CombinationsRelated Issues as a result of the 2021 Merger.

On April 9, 2018, the Company entered into an administration

agreement with the Advisor, or the administration agreement.

Pursuant to the administration agreement, the Advisor oversees the

Companys 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 Advisor also performs, or oversees the performance of, the Companys corporate operations and required administrative services, which includes being

3 unchanged sentences

professional services rendered to the Company by others.

Pursuant to the administration agreement, the Company reimburses the

Advisor for expenses necessary to perform services related to its administration and operations, including the Advisors allocable portion of the compensation and related expenses of certain personnel of Franklin Square Holdings, L.P., which

does business as FS Investments, or FS Investments, and KKR Credit Advisors (US), LLC, or KKR Credit, providing administrative services to the Company on behalf of the Advisor.

The Company reimburses the Advisor no less than quarterly for all costs

and expenses incurred by the Advisor in performing its obligations and providing personnel and facilities under the administration agreement.

The Advisor 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 Companys 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 Advisor.

The Companys 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 Companys 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 Companys board of directors compares the total amount paid to the Advisor for such services as a percentage of the Companys net assets to the same ratio

as reported by other comparable BDCs.

Pursuant to the administration agreement, the Company reimburses the Advisor for

expenses necessary to perform services related to its administration and operations, including the Advisors allocable portion of the compensation and related expenses of certain personnel of Franklin Square Holdings, L.P., which does business

as FS Investments, or FS Investments, and KKR Credit Advisors (US), LLC, or KKR Credit, providing administrative services to the Company on behalf of the Advisor.

The Company reimburses the Advisor no less than quarterly for all costs and expenses

incurred by the Advisor in performing its obligations and providing personnel and facilities under the administration agreement.

The Advisor 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 Companys 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 Advisor.

The Companys 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 Companys 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 Companys board of directors compares the total amount paid to the Advisor for such services as a percentage of the Companys net assets to the same ratio as reported by other

comparable BDCs.

The FB Advisor administration agreement was substantially similar to the administration agreement.

The following table describes the fees and expenses accrued under the investment advisory agreement, the prior investment advisory agreement, the FB Advisor investment advisory agreement, the

administration agreement and the FB Advisor administration agreement, as applicable, during the years ended December 31, 2020, 2019 and 2018:

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Related Party

Transactions (continued)

The following table describes the fees and expenses accrued under the investment advisory

agreement, the prior investment advisory agreement, and the administration agreement, as applicable, during the years ended December 31, 2021, 2020 and 2019:

Year Ended December 31,

1 unchanged sentence

Source Agreement

FB Advisor and the Advisor

Investment advisory agreement, prior investment advisory agreement and FB Advisor investment advisory agreement

Investment advisory agreement and prior investment advisory agreement

Base Management Fee (1)

FB Advisor and the Advisor

Investment advisory agreement, prior investment advisory agreement and FB Advisor investment advisory agreement

Subordinated Incentive Fee on

FB Advisor and the Advisor

Administration agreement and FB Advisor administration agreement

Investment advisory agreement and prior investment advisory agreement

Subordinated Incentive Fee on Income (2)

Administration agreement

Administrative Services Expenses (3)

For the year ended December 31, 2018 , the amount shown is net of waivers of $3.

During the years ended December 31, 2020, 2019 and

2018, $111, $105, and $59, respectively, in base management fees were paid to the Advisor and/or FB Advisor.

During the years ended December 31, 2021, 2020 and 2019, $162, $111, and $105, respectively, in base

management fees were paid to the Advisor.

As of December 31, 2021, $60 in base management fees were payable to the Advisor.

During the year ended December 31, 2020 and 2019, $0 and $71, respectively, of subordinated incentive fees on income were paid to the

The Advisor agreed, effective July 1, 2021, to waive up to $15 per quarter of the subordinated incentive

fee on income to which it is entitled to under the investment advisory agreement.

During the year ended December 31, 2021, the amount shown is net of waivers of $30.

During the years ended December 31, 2021, 2020 and 2019, $49, $0 and $71,

respectively, of subordinated incentive fees on income were paid to the Advisor.

As of December 31, 2021, $19 in subordinated incentive fees on income were payable to the Advisor.

During the years ended December 31, 2021, 2020 and 2019, $10, $6 and $6, respectively, of administrative

services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by the Advisor and the remainder related to other reimbursable expenses, including reimbursement of fees related to transactional

expenses for prospective investments, such as fees and expenses associated with performing due diligence reviews of investments that do not close, often referred to as broken deal costs.

Broken deal costs were $1.3 for the year ended

December 31, 2021.

The Company paid $11, $8 and $7, respectively, in administrative services expenses to the Advisor during the years ended December 31, 2021, 2020 and 2019.

Potential Conflicts of Interest

members of the senior management and investment teams of the Advisor 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.

The officers, managers and other personnel of the Advisor may serve in similar or other capacities for the investment advisers to future investment vehicles affiliated with FS Investments 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 Companys best interests or in the best interest of the Companys stockholders.

Companys investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment vehicles.

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.

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, including FS Energy and Power Fund 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 Advisor, and in an effort to mitigate potential future conflicts of

interest, the Companys 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 permits the

FS KKR Capital Corp.

3 unchanged sentences

Transactions (continued)

During the years ended December 31, 2020, 2019 and 2018, $6, $6 and $3, respectively, of administrative services expenses related to the

allocation of costs of administrative personnel for services rendered to the Company by FB Advisor and the Advisor and the remainder related to other reimbursable expenses, including reimbursement of fees related to transactional expenses for

prospective investments, including fees and expenses associated with performing due diligence reviews of investments that do not close, often referred to as broken deal costs.

Broken deal costs were $0.8 for the year ended

December 31, 2020.

The Company paid $8, $7 and $3, respectively, in administrative services expenses to the Advisor and/or FB Advisor during the years ended December 31, 2020, 2019 and 2018.

Potential Conflicts of Interest

The members of the senior management and investment teams of the Advisor 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 Advisor is the investment adviser to FSKR, and the officers, managers and other personnel of the Advisor may serve in similar or other capacities for the

investment advisers to future investment vehicles affiliated with FS Investments 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 Companys best interests or in the best interest of the Companys stockholders.

The Companys investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment

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.

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

FB Advisor, including FS Energy and Power Fund, FSKR and any future BDCs that are advised by FB Advisor or its affiliated investment advisers.

However, in connection with the investment advisory relationship with the Advisor, and in an effort to

mitigate potential future conflicts of interest, the Companys 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 permits 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 Advisor or KKR Credit, with certain

affiliates of the Advisor.

Affiliated Purchaser Program

As previously disclosed, certain affiliates of the owners of the Advisor committed $100 to a $350 investment vehicle that may invest from time to time in shares of the Company.

In June 2020, that

investment vehicle entered into a written trading plan with a third party broker in accordance with Rule 10b5-1 and Rule 10b-18 promulgated under the Exchange Act to

facilitate the purchase of shares of the Companys common stock pursuant to the terms and conditions of such plan.

The Company is not a party to the plan or any transaction with the investment vehicle.

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 Advisor or KKR Credit, with certain affiliates of the Advisor.

Affiliated Purchaser

As previously disclosed, certain affiliates of the owners of the Advisor committed $100 to a $350 investment vehicle that may

invest from time to time in shares of the Company.

In September 2021 and December 2021, that investment vehicle entered into a written trading plan with a third party broker in accordance with Rule 10b5-1 and

Rule 10b-18 promulgated under the Exchange Act to facilitate the purchase of shares of the Companys common stock pursuant to the terms and conditions of such plan.

The Company is not a party to any

transaction with the investment vehicle.

Distributions

3 unchanged sentences

Per Share (1)

The amount of each per share distribution has been retroactively adjusted to reflect the Reverse Stock Split as discussed above in Note 3.

The amount of each per share distribution has been retroactively adjusted to reflect the Reverse Stock Split as

discussed above in Note 3.

On February 23, 2022, the Companys board of directors declared a regular quarterly cash

distribution of $0.63 per share, which will be paid on or about April 4, 2022 to stockholders of record as of the close of business on March 16, 2022.

The timing and amount of any future distributions to stockholders are subject to applicable legal

restrictions and the sole discretion of the Companys board of directors.

Pursuant to the DRP, the Company will reinvest all cash

dividends or distributions declared by the Companys board of directors on behalf of stockholders who do not elect to receive their distributions in cash.

As a result, if the Companys board of directors declares a distribution, then

stockholders who have not elected to opt out of the DRP will have their distributions automatically reinvested in additional shares of the Companys 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 Companys 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 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 Companys 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 Companys common stock is trading above net asset value, a stockholder receiving

distributions in the

FS KKR Capital Corp.

2 unchanged sentences

Distributions (continued)

Includes a $0.36 per share special cash distribution that was paid on December 3, 2018.

On February 18, 2021, the Companys board of directors declared a regular quarterly cash distribution of $0.60 per share, which

will be paid on or about April 2, 2021 to stockholders of record as of the close of business on March 17, 2021.

The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole

discretion of the Companys board of directors.

Pursuant to the DRP, the Company will reinvest all cash dividends or

distributions declared by the Companys board of directors on behalf of stockholders who do not elect to receive their distributions in cash.

As a result, if the Companys board of directors declares a distribution, then stockholders who

have not elected to opt out of the DRP will have their distributions automatically reinvested in additional shares of the Companys 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 Companys 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 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 Companys 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 Companys 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 Companys common stock.

The stockholders basis for determining gain or loss upon the sale of common stock received in a distribution will be equal to the

total 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

stockholders 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 Companys 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.

form of additional common stock will be treated as receiving a distribution in the amount of the fair market value of the Companys common stock.

The stockholders basis for determining

gain or loss upon the sale of common stock received in a distribution will be equal to the total 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 stockholders account.

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 Companys 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

The Company has not established limits on the amount of funds it may use from available sources to make distributions.

During certain periods, the Companys 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.

return of capital generally is a return of a stockholders investment rather than a return of earnings or gains derived from the Companys 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 Companys stockholders.

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 stockholders investment rather than a return of earnings or gains derived from the Companys investment

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 Companys stockholders.

There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Distributions (continued)

The following table reflects the sources of the cash distributions on a tax basis that

the Company has declared on its common stock during the years ended December 31, 2020, 2019 and 2018:

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

years ended December 31, 2021, 2020 and 2019:

Year Ended December 31,

4 unchanged sentences

Long-term capital gains proceeds from the sale of assets

Non-capital gains proceeds from the sale of assets

Non-capital gains proceeds from the sale of

Distributions on account of preferred and common equity

During the years ended December 31, 2020, 2019 and 2018, 88.1%, 90.5% and 84.3%, respectively, of the Companys gross investment

income was attributable to cash income earned, 1.6%, 1.8% and 1.8%, respectively, was attributable to non-cash accretion of discount and 10.3%, 7.7% and 13.9%, respectively, was attributable to paid-in-kind, or PIK, interest.

During the years ended December 31, 2021, 2020 and 2019, 84.6%, 88.1% and 90.5%, respectively, of the

Companys gross investment income was attributable to cash income earned, 5.5%, 1.6% and 1.8%, respectively, was attributable to non-cash accretion of discount and 9.9%, 10.3% and 7.7%, respectively, was

attributable to paid-in-kind, or PIK, interest.

The Companys net investment income on a tax basis for the years ended December 31, 2021, 2020 and 2019 was $557, $357 and $422,

1 unchanged sentence

As of December 31, 2021, 2020 and 2019, the Company had $284, $244 and $220, respectively, of undistributed net investment income and $1,705, $855 and $480, respectively, of accumulated capital losses on a tax basis.

The Companys undistributed net investment income on a tax basis may be adjusted following the filing of the Companys tax

The adjustment is in general due to tax-basis income received by the Company differing from GAAP-basis income on account of certain collateralized securities and interests in partnerships, and the reclassification of realized gains and

losses upon the sale of certain collateralized securities held in its investment portfolio during such period.

The difference

between the Companys GAAP-basis net investment income and its tax-basis net investment income is primarily due to the reclassification of unamortized original issue discount and prepayment fees

recognized upon prepayment of loans from income for GAAP purposes to realized gains or deferred to future periods for tax purposes, the impact of consolidating certain subsidiaries for purposes of computing GAAP-basis net investment income but not

for purposes of computing tax-basis net investment income, the reversal of non-deductible excise taxes and income recognized for tax purposes on certain transactions but

not recognized for GAAP purposes.

The following table sets forth a reconciliation between GAAP-basis net investment income and

tax-basis net investment income during the years ended December 31, 2020, 2019 and 2018:

The Companys undistributed net investment income on a tax basis may be adjusted following the filing of the Companys tax returns.

The adjustment is in general due to tax-basis income received by the Company differing from GAAP-basis income on account of certain collateralized securities and interests in partnerships, and the

reclassification of realized gains and losses upon the sale of certain collateralized securities held in its investment portfolio during such period.

The difference between the Companys GAAP-basis net investment income and its tax-basis net

investment income is primarily due to the reclassification of unamortized original issue discount and prepayment fees recognized upon prepayment of

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Distributions (continued)

loans from income for GAAP purposes to realized gains or deferred to future periods for tax purposes, the impact of consolidating certain subsidiaries for purposes of computing GAAP-basis net

investment income but not for purposes of computing tax-basis net investment income, the reversal of non-deductible excise taxes and income recognized for tax purposes

on certain transactions but not recognized for GAAP purposes.

The following table sets forth a reconciliation between GAAP-basis net

investment income and tax-basis net investment income during the years ended December 31, 2021, 2020 and 2019:

Year Ended December 31,

1 unchanged sentence

Income subject to tax not recorded for GAAP

GAAP versus tax-basis impact of consolidation of certain subsidiaries

GAAP accretion from merger not recognized for tax

GAAP versus tax-basis impact of consolidation of certain

Reclassification of unamortized original issue discount and prepayment fees

1 unchanged sentence

Tax-basis net investment income

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Distributions (continued)

The Company may make certain adjustments to the classification of stockholders

equity as a result of permanent book-to-tax differences.

During the year ended December 31, 2020, the Company increased accumulated undistributed (distributions in

excess of) net investment income and accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $10 and $119, respectively, and decreased capital in excess of par value by $129.

The Company may make certain adjustments to the classification of stockholders equity as a result of

permanent book-to-tax differences.

During the year ended December 31, 2021, the Company decreased accumulated undistributed (distributions in excess of) net

investment income and accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $47 and $2,115, respectively, and increased capital in excess of par value by $2,162.

During the year ended

1 unchanged sentence

respectively, and decreased capital in excess of par value by $129.

The determination of the tax attributes of the

Companys distributions is made annually as of the end of the Companys fiscal year based upon the Companys taxable income for the full year and distributions paid for the full year.

The actual tax characteristics of distributions to

stockholders are reported to stockholders annually on Form 1099-DIV.

December 31, 2020 and 2019, the components of accumulated earnings on a tax basis were as follows:

The determination of the tax attributes of the Companys

distributions is made annually as of the end of the Companys fiscal year based upon the Companys taxable income for the full year and distributions paid for the full year.

The actual tax characteristics of distributions to stockholders

are reported to stockholders annually on Form 1099-DIV.

As of December 31, 2021 and 2020, the

components of accumulated earnings on a tax basis were as follows:

Year Ended December 31,

2 unchanged sentences

Other temporary differences

Net unrealized appreciation (depreciation) (2)

Net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term losses.

December 31, 2020, the Company had short-term and long-term capital loss carryforwards available to offset future realized capital gains of $34 and $821, respectively.

$85 of such losses were carried over from CCT due to the 2018 Merger, and

$177 of such losses were carried over from losses generated by the Company prior to the 2018 Merger.

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.

Net unrealized appreciation

(depreciation) (2)

Net capital losses may be carried forward indefinitely, and their character is retained as short-term or

long-term losses.

As of December 31, 2021, the Company had capital loss carryforwards available to offset future realized capital gains of approximately $1,900.

$85 of such losses were carried over from CCT due to the 2018 Merger, $1,212 were

carried over from FSKR due to the 2021 Merger, and $177 of such losses were carried over from losses generated by the Company prior to the 2018 Merger.

Because of the loss limitation rules of the Code, some of the tax basis losses may be limited in

Any unused balances resulting from such limitations may be carried forward into future years indefinitely.

As of December 31, 2021 and 2020, the gross unrealized appreciation was $1,665 and $1,121, respectively.

As of December 31, 2020 and

2019, the gross unrealized depreciation was $1,280 and $1,002, respectively.

The aggregate cost of the

Companys investments for U.S.

of December 31, 2021 and 2020, the gross unrealized depreciation was $1,995 and $1,280, respectively.

The aggregate

cost of the Companys investments for U.S.

federal income tax purposes totaled $17,167 and $7,622 as of December 31, 2021 and 2020, respectively.

The aggregate net unrealized appreciation (depreciation) on a tax basis was $(842) and $(616) as of

December 31, 2020 and 2019, respectively.

The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from merger accounting, cross currency swaps, foreign currency

forward contracts and foreign currency transactions.

As of December 31, 2020, the Company had a deferred tax liability of

$5 resulting from unrealized appreciation on investments held by the Companys wholly-owned taxable subsidiaries and a deferred tax asset of $56 resulting from a combination of unrealized depreciation on investments held by and net operating

losses and other tax attributes of the Companys wholly-owned taxable subsidiaries.

As of December 31, 2020, 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 $51.

For the year ended December 31, 2020, the Company did not record a provision for taxes related to wholly-owned taxable subsidiaries.

The aggregate net unrealized appreciation (depreciation) on a tax basis was $(1,066)

FS KKR Capital Corp.

1 unchanged sentence

(in millions, except share and per share amounts)

Distributions (continued)

and $(842) as of December 31, 2021 and 2020, respectively.

The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation

(depreciation) from merger accounting, cross currency swaps, foreign currency forward contracts and foreign currency transactions.

December 31, 2021, the Company had a deferred tax liability of $4 resulting from unrealized appreciation on investments held by the Companys wholly-owned taxable subsidiaries and a deferred tax asset of $79 resulting from a combination of

unrealized depreciation on investments held by and net operating losses and other tax attributes of the Companys wholly-owned taxable subsidiaries.

As of December 31, 2021, 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 $75.

For the year ended December 31, 2021, the Company did not record a provision for taxes related

to wholly-owned taxable subsidiaries.

Investment Portfolio

The following table summarizes the composition of the Companys investment portfolio at cost and fair value as of December 31, 2021

2020 and 2019:

December 31, 2021

5 unchanged sentences

Asset Based Finance

Strategic Credit Opportunities Partners, LLC

Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on

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 December 31, 2020, the Company held investments in ten portfolio companies of

which it is deemed to control. As of December 31, 2020, the Company held investments in thirteen 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 (y) and (z) to the consolidated schedule of investments as of December 31, 2020.

As of December 31, 2019, the Company held investments in seven portfolio companies of which it is deemed to control. As of December 31, 2019, the Company held investments in sixteen

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 (y) and (z) to the consolidated

schedule of investments as of December 31, 2019.

The Companys 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 December 31, 2020, the Company had unfunded debt investments with aggregate unfunded commitments of $228.4, unfunded equity/other commitments of $142.9 and unfunded commitments of $65.8 of Strategic

Credit Opportunities Partners, LLC.

As of December 31, 2019, the Company had unfunded debt investments with aggregate unfunded commitments of $438.0, unfunded equity/other commitments of $240.1 and unfunded commitments of $385.2 of Strategic

Credit Opportunities Partners, LLC.

The Company maintains sufficient cash on hand and available borrowings to fund such unfunded commitments should the need arise.

For additional details regarding the Companys unfunded debt investments, see

the Companys consolidated schedule of investments as of December 31, 2020 and 2019.

Credit Opportunities Partners JV, LLC

Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of

discounts, 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 December 31, 2021, the Company held investments in seventeen

portfolio companies of which it is deemed to control. As of December 31, 2021, the Company held investments in sixteen 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, 2021.

As of December 31, 2020, the Company held investments in ten portfolio companies of which it is deemed to control. As of

December 31, 2020, the Company held investments in thirteen 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 (y) and (z) to the consolidated schedule of investments as of December 31, 2020.

Companys 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 December 31, 2021, the Company had unfunded debt investments with aggregate unfunded commitments of $1,724.1, unfunded equity/other

commitments of $576.9 and unfunded commitments of $350.2 to Credit Opportunities Partners JV, LLC.

As of December 31,

FS KKR Capital Corp.

2 unchanged sentences

Investment Portfolio (continued)

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 December 31, 2020 and 2019:

2020, the Company had unfunded debt investments with aggregate unfunded commitments of $228.4, unfunded equity/other commitments of $142.9 and unfunded commitments of $65.8 to Credit

Opportunities Partners JV, LLC.

The Company maintains sufficient cash on hand and available borrowings to fund such unfunded commitments should the need arise.

For additional details regarding the Companys unfunded debt investments, see the

Companys consolidated schedule of investments as of December 31, 2021 and 2020.

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 December 31, 2021 and 2020:

December 31, 2021

1 unchanged sentence

Industry Classification

Percentage of

Automobiles & Components

3 unchanged sentences

Consumer Services

Credit Opportunities Partners JV, LLC

Diversified Financials

5 unchanged sentences

Pharmaceuticals, Biotechnology & Life Sciences

Semiconductors & Semiconductor Equipment

Software & Services

Strategic Credit Opportunities Partners, LLC

Technology Hardware & Equipment

1 unchanged sentence

Transportation

Strategic Credit Opportunities Partners, LLC

Strategic Credit Opportunities Partners, LLC, or SCJV, is a joint venture between the Company and South Carolina Retirement Systems Group

Trust, or SCRS.

SCRS purchased its interests in SCJV from Conway Capital, LLC, an affiliate of Guggenheim Life and Annuity Company and Delaware Life Insurance Company, in June 2019, which had no impact on the significant terms governing SCJV other

than an increase in the aggregate capital commitment (but not the percentage of the aggregate capital committed by each member) to SCJV.

SCJVs amended and restated limited liability company agreement, or the SCJV Agreement, requires the

Company and SCRS to provide capital to SCJV of up to $1,000 in the aggregate where the Company and SCRS would provide 87.5% and 12.5%, respectively, of the committed capital.

Pursuant to the terms of the SCJV Agreement, the Company and SCRS each

have 50% voting control of SCJV and are required to agree on all investment decisions as well as certain other significant actions for SCJV.

SCJV 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 SCJV, the Company performs

certain day-to-day management responsibilities on behalf of SCJV and is entitled to a fee of 0.25% of SCJVs assets under administration, calculated and

payable quarterly in arrears.

As of December 31, 2020, the Company and SCRS have funded approximately $924.8 to SCJV, of which $809.2 was from the Company.

Jersey City Funding LLC, or Jersey City Funding, a wholly-owned subsidiary of SCJV, has a revolving credit facility with Goldman Sachs Bank, or as amended, the Jersey City Funding Credit Facility, which

provides for up to $350 of borrowings as of

Credit Opportunities Partners JV, LLC

Credit Opportunities Partners JV, LLC (formerly known as Strategic Credit Opportunities Partners, LLC), or COPJV, is a joint venture between

the Company and South Carolina Retirement Systems Group Trust, or SCRS.

SCRS purchased its interests in COPJV from Conway Capital, LLC, an affiliate of Guggenheim Life and Annuity Company and Delaware Life Insurance Company, in June 2019, which had

no impact on the significant terms governing COPJV other than an increase in the aggregate capital commitment (but not the percentage of the aggregate capital committed by each member) to COPJV.

Effective as of June 18, 2021, Credit

Opportunities Partners, LLC, or COP, merged with and into COPJV, with COPJV surviving the merger, or the COPJV Merger.

As of June 18, 2021, COPJV assumed all of COPs obligations under its credit facilities, and COPs wholly- owned

special purpose financing subsidiaries became wholly-owned special purpose financing subsidiaries of COPJV, in each case, as a result of the consummation of the COPJV Merger.

COPJVs 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 $2,000 in the aggregate where the Company and SCRS would provide 87.5% and 12.5%, respectively, of the committed capital.

Pursuant to the

FS KKR Capital Corp.

2 unchanged sentences

Investment Portfolio (continued)

December 31, 2020.

The Jersey City Funding Credit Facility provides loans in U.S.

dollars, Australian dollars, Euros, pounds sterling and Canadian dollars.

dollar loans bear

interest at the rate of LIBOR plus 2.25%.

Foreign currency loans bear interest at the floating rate plus the spread applicable to the specified currency.

Jersey City Funding also pays a commitment fee of up to 0.50% on undrawn commitments.

Jersey City Funding Credit Facility matures on September 29, 2021.

As of December 31, 2020, total outstanding borrowings under the Jersey City Funding Credit Facility were $341.9.

Borrowings under the Jersey City Funding Credit Facility

are secured by substantially all of the assets of Jersey City Funding.

Chestnut Street Funding LLC, or Chestnut Street

Funding, a wholly-owned subsidiary of SCJV, has a revolving credit facility with Citibank, N.A., or as amended, the Chestnut Street Funding Credit Facility, which provides for up to $400 of borrowings as of December 31, 2020.

Street Funding Credit Facility provides loans in U.S.

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 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 COPJVs assets under

administration, calculated and payable quarterly in arrears.

As of December 31, 2021, the Company and SCRS have funded approximately $1,599.8 to COPJV, of which $1,399.8 was from the Company.

Big Cedar Creek LLC, or Big Cedar Creek Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with BNP Paribas, or as

amended, the Big Cedar Creek Funding Credit Facility, which provides for up to $300 of borrowings as of December 31, 2021.

The Big Cedar Creek Funding Credit Facility provides loans in U.S.

dollars, Australian dollars, Canadian dollars, New

Zealand dollars, Euros and pounds sterling.

dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus a spread of 1.85% to 2.55% during the reinvestment period and 2.00% to 2.65% thereafter.

Foreign currency loans bear

interest at the applicable floating rate (subject to a 0% floor) plus a spread of 1.85% to 2.55% during the reinvestment period and 2.00% to 2.65% thereafter.

Big Cedar Creek Funding also pays a commitment fee of up to 1.00% on undrawn commitments.

The Big Cedar Creek Funding Credit Facility matures on March 11, 2025.

As of December 31, 2021, total outstanding borrowings under the Big Cedar Creek Funding Credit Facility were $193.5.

Borrowings under the Big Cedar Creek Funding Credit

Facility are secured by substantially all of the assets of Big Cedar Creek.

Boxwood Drive Funding LLC, or Boxwood Drive Funding, a

wholly-owned subsidiary of COPJV, has a revolving credit facility with BNP Paribas, or as amended, the Boxwood Drive Funding Credit Facility, which provides for up to $300 of borrowings as of December 31, 2021.

The Boxwood Drive Funding Credit

Facility provides for loans in U.S.

dollars, Australian dollars, Canadian dollars, New Zealand dollars, Euros and pounds sterling.

dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus a spread of 2.05% to 3.15% during

the reinvestment period and 2.50% to 3.25% thereafter.

Foreign currency loans bear interest at the applicable floating rate (subject to 0% floor) plus the spread applicable to the specified currency.

Boxwood Drive Funding also pays a commitment fee

of up to 1.00% on undrawn commitments.

The Boxwood Drive Funding Credit Facility matures on April 15, 2025.

As of December 31, 2021, total outstanding borrowings under the Boxwood Drive Funding Credit Facility were $207.8.

Borrowings under

the Boxwood Drive Funding Credit Facility are secured by substantially all of the assets of Boxwood Drive Funding.

Chestnut Street Funding

LLC, or Chestnut Street Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with Citibank, N.A., or as amended, the Chestnut Street Funding Credit Facility, which provides for up to $400 of borrowings as of December 31,

The Chestnut Street Funding Credit Facility provides loans in U.S.

dollars, Australian dollars, Canadian dollars, Euros and pounds sterling.

dollar loans bear interest at the rate of three-month LIBOR plus 2.25%.

Foreign currency loans bear interest at the

applicable floating rate plus 2.25%.

dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus 2.25%.

currency loans bear interest at the applicable floating rate (subject to a 0% floor) plus 2.25%.

Chestnut Street Funding also pays a commitment fee of up to 0.50% on undrawn commitments.

The Chestnut Street Funding Credit Facility matures on September 18, 2024.

As of December 31, 2020, total

outstanding borrowings under the Chestnut Street Funding Credit Facility were $294.2.

Borrowings under the Chestnut Street Funding Credit Facility are secured by substantially all of the assets of Chestnut Street Funding.

Boxwood Drive Funding LLC, or Boxwood Drive Funding, a wholly-owned subsidiary of SCJV, has a revolving credit facility with BNP Paribas,

or the Boxwood Drive Funding Credit Facility, which provides for up to $300 of borrowings as of December 31, 2020.

The Boxwood Drive Funding Credit Facility provides for loans in U.S.

dollars, Australian dollars, Canadian dollars, New Zealand

dollars, Euros and pounds sterling.

dollar loans bear interest at the rate of LIBOR plus a spread of 2.05% to 3.15% during the reinvestment period and 2.50% to 3.25% thereafter.

Foreign currency of loans bear interest at the applicable floating

rate plus the applicable spread.

Boxwood Drive Funding also pays a commitment fee of up to 1.00% on undrawn commitments.

The Boxwood Drive Funding Credit Facility matures on April 15, 2025.

As of December 31, 2020, total outstanding

borrowings under the Boxwood Drive Funding Credit Facility were $85.9.

Borrowings under the Boxwood Drive Funding Credit Facility are secured by substantially all of the assets of Boxwood Drive Funding.

SCOP was in compliance with all covenants required by its financing arrangements as of December 31, 2020 and December 31, 2019.

During the year ended December 31, 2020, the Company sold investments with a cost of $450.7 for proceeds of $416.4 to

SCJV and recognized a net realized gain (loss) of $(34.3) in connection with the transactions.

As of December 31, 2020, $163.2 of these sales to SCJV are included in receivable for investments sold in the consolidated statements of assets and

As of December 31, 2020, SCJV had total investments with a fair value of $1,544.3.

As of December 31,

2020, SCJV had two investments on non-accrual status.

Below is a summary of

SCJVs portfolio, followed by a listing of the individual loans in SCJVs portfolio as of December 31, 2020 and 2019:

The Chestnut Street Funding Credit Facility matures on

September 18, 2024.

As of December 31, 2021, total outstanding borrowings under the Chestnut Street Funding Credit Facility were $175.0.

Borrowings under the Chestnut Street Funding Credit Facility are secured by substantially all of the

assets of Chestnut Street Funding.

Green Creek LLC, or Green Creek Funding, a wholly-owned subsidiary of COPJV, has a revolving credit

facility with Goldman Sachs Bank, or as amended, the Green Creek Funding Credit Facility, which provides for up to $400 of borrowings as of December 31, 2021.

The Green Creek Credit Facility provides for loans in U.S.

dollars, Canadian dollars,

Euros and pounds sterling.

dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus 2.25%.

Foreign currency loans bear interest at the rate of the applicable floating rate (subject to a 0% floor) plus the spread applicable

to the specified currency.

Green Creek Funding also pays a commitment fee of up to 2.25% on undrawn commitments.

The Green Creek Funding Credit Facility matures on January 30, 2027.

As of December 31, 2021, total outstanding borrowings

under the Green Creek Funding Credit Facility were $345.8.

Borrowings under the Green Creek Funding Credit Facility are secured by substantially all of the assets of Green Creek Funding.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

On September 2, 2021, Jersey City Funding LLC, or Jersey City Funding, a wholly-owned

subsidiary of COPJV, prepaid all outstanding borrowings under, and terminated, its revolving credit facility with Goldman Sachs Bank.

March 31, 2021, COPJV sold in a private placement $300 of aggregate principal amount of unsecured notes, or the April COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the Securities Act.

Interest of the

April COPJV Notes is payable quarterly on the 1st of each of January, April, July and October, at a fixed annual rate of 4.25%, commencing July 1, 2021.

This interest rate is subject to increase up to 4.75% in the event that the April COPJV

Notes cease to be rated investment grade, and the April COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default.

The April COPJV Notes mature on April 1, 2026, unless redeemed,

purchased or prepaid prior to such date by COPJV in accordance with their terms.

On August 17, 2021, COPJV sold in a private

placement $225 of aggregate principal amount of Series B senior unsecured notes, or the August COPJV Notes and together with the April COPJV Notes, the COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the

Securities Act.

Interest of the August COPJV Notes is payable semi-annually on the 17th of each of February and August, at a fixed annual rate of 3.62%, commencing February 17, 2022.

This interest rate is subject to increase up to 4.12% in the

event that the COPJV Notes cease to be rated investment grade, and the August COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default.

The August COPJV Notes mature on August 17, 2026,

unless redeemed, purchased or prepaid prior to such date by COPJV in accordance with their terms.

The COPJV Notes are general unsecured

obligations that rank pari passu with all outstanding and future unsecured and unsubordinated indebtedness that COPJV may issue.

COPJV used the net proceeds from the COPJV Notes for general corporate purposes, including to make investments,

repay existing debt and make permitted distributions.

During the year ended December 31, 2021, the Company sold investments with a

cost of $1,570.6 for proceeds of $1,620.8 to COPJV and recognized a net realized gain (loss) of $50.2 in connection with the transactions.

As of December 31, 2021, $560.3 of these sales to COPJV are included in receivable for investments sold

in the consolidated statements of assets and liabilities.

As of December 31, 2021 and December 31, 2020, COPJV had total

investments with a fair value of $3,260.0 and $1,544.3, respectively.

As of December 31, 2021 and December 31, 2020, COPJV had zero and two investments on non-accrual status, respectively.

Below is a summary of COPJVs portfolio, followed by a listing of the individual loans in COPJVs portfolio as of December 31,

2021 and 2020:

Total debt investments (1)

Weighted average current interest rate on debt investments (2)

Number of portfolio companies in SCJV

Largest investment in a single portfolio company (1)

Number of portfolio companies in COPJV

Largest investment in a single portfolio

Unfunded commitments (1)

Computed as the (a) annual stated interest rate on accruing debt, divided by (b) total debt at par amount.

Debt Investments means investments that pay or are expected to pay a stated interest rate, stated

dividend rate or other similar stated return.

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.

FS KKR Capital Corp.

2 unchanged sentences

Investment Portfolio (continued)

Strategic Credit Opportunities Partners, LLC Portfolio

Credit Opportunities Partners JV, LLC Portfolio

As of December 31, 2021 (in millions)

1 unchanged sentence

Senior Secured LoansFirst Lien135.2%

A10 Capital LLC

Diversified Financials

ABB CONCISE Optical Group LLC

Apex Group Limited

Diversified Financials

Accuride Corp

Capital Goods

Advania Sverige AB

Software & Services

Advania Sverige AB

Software & Services

Affordable Care Inc

Health Care Equipment & Services

Alera Group Intermediate Holdings Inc

Transportation

Ammeraal Beltech Holding BV

Capital Goods

Apex Group Limited

2 unchanged sentences

Diversified Financials

Software & Services

Ardonagh Group Ltd

Arrotex Australia Group Pty Ltd

2 unchanged sentences

Pharmaceuticals, Biotechnology & Life Sciences

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Consumer Services

BearCom Acquisition Corp

4 unchanged sentences

Technology Hardware & Equipment

BGB Group LLC

Media & Entertainment

Big Bus Tours Ltd

4 unchanged sentences

Consumer Durables & Apparel

Cambium Learning Group Inc

Consumer Services

Catapult Learning LLC

Consumer Services

Caprock Midstream LLC

Capital Goods

Software & Services

Eagleclaw Midstream Ventures LLC

EIF Van Hook Holdings LLC

Entertainment Benefits Group LLC

Media & Entertainment

Follett Software Co

Software & Services

Frontline Technologies Group LLC

Software & Services

Galway Partners Holdings LLC

General Datatech LP

Software & Services

Greystone Equity Member Corp

Diversified Financials

FS KKR Capital Corp.

3 unchanged sentences

Interest Rate (b)

Catapult Learning LLC

Consumer Services

Catapult Learning LLC

Consumer Services

Catapult Learning LLC

Consumer Services

Catapult Learning LLC

Consumer Services

Catapult Learning LLC

Consumer Services

Child Development Schools Inc

Consumer Services

Child Development Schools Inc

Consumer Services

CSM Bakery Products

Food, Beverage & Tobacco

Diamond Resorts International Inc

Consumer Services

Eacom Timber Corp

Frontline Technologies Group LLC

Software & Services

HealthChannels LLC

Health Care Equipment & Services

Huws Gray Ltd

Commercial & Professional Services

PIK (2.3% Max

Commercial & Professional Services

PIK (2.3% Max

Commercial & Professional Services

PIK (2.3% Max

Commercial & Professional Services

PIK (2.3% Max

Hermes UK Ltd

Transportation

Higginbotham Insurance Agency Inc

Industria Chimica Emiliana Srl

Pharmaceuticals, Biotechnology & Life Sciences

Insight Global LLC

Commercial & Professional Services

KBP Investments LLC

Food & Staples Retailing

Kellermeyer Bergensons Services LLC

Commercial & Professional Services

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Kettle Cuisine LLC

Food, Beverage & Tobacco

Koosharem LLC

Lakeview Farms Inc

Food, Beverage & Tobacco

Commercial & Professional Services

Lionbridge Technologies Inc

Consumer Services

MedAssets Inc

Lipari Foods LLC

Food & Staples Retailing

Lloyds Register Quality Assurance Ltd

Consumer Services

Monitronics International Inc

Commercial & Professional Services

Motion Recruitment Partners LLC

Commercial & Professional Services

New Era Technology Inc

Software & Services

One Call Care Management Inc

Health Care Equipment & Services

Parts Town LLC

Ontic Engineering & Manufacturing Inc

Capital Goods

Parata Systems

Health Care Equipment & Services

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Precision Global Corp

1 unchanged sentence

Diversified Financials

Pretium Packaging LLC

Household & Personal Products

Project Marron

2 unchanged sentences

Consumer Services

Project Marron

Consumer Services

Pure Fishing Inc

Consumer Durables & Apparel

Qdoba Restaurant Corp

2 unchanged sentences

Health Care Equipment & Services

Roadrunner Intermediate Acquisition Co LLC

Health Care Equipment & Services

Revere Superior Holdings Inc

Software & Services

Rise Baking Company

Food, Beverage & Tobacco

Rise Baking Company

Food, Beverage & Tobacco

Rise Baking Company

Food, Beverage & Tobacco

RSC Insurance Brokerage Inc

Safe-Guard Products International LLC

Diversified Financials

SAMBA Safety Inc

Software & Services

Consumer Services

Capital Goods

L+675, 0.0% PIK

(1.0% Max PIK)

Smart & Final Stores LLC

Food & Staples Retailing

SIRVA Worldwide Inc

Commercial & Professional Services

Staples Canada

Technimark LLC

(e)(h)(i)(j)(k)(n)

Summit Interconnect Inc

Capital Goods

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Time Manufacturing Co

Capital Goods

Total Safety US Inc

2 unchanged sentences

Software & Services

Virgin Pulse Inc

Software & Services

Capital Goods

Yak Access LLC

1 unchanged sentence

Total Senior Secured LoansFirst Lien

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Unfunded Loan Commitments

5 unchanged sentences

Capital Goods

BCA Marketplace PLC

Apex Group Limited

Diversified Financials

EaglePicher Technologies LLC

Capital Goods

Excelitas Technologies Corp

1 unchanged sentence

Software & Services

Resource Label Group LLC

NEP Broadcasting LLC

Media & Entertainment

OEConnection LLC

Software & Services

Paradigm Acquisition Corp

Health Care Equipment & Services

Pretium Packaging LLC

Household & Personal Products

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Pure Fishing Inc

Consumer Durables & Apparel

Capital Goods

L+1,075, 0.0% PIK

(6.8% Max PIK)

L+1,075, 0.0%

SIRVA Worldwide Inc

2 unchanged sentences

Technology Hardware & Equipment

WireCo WorldGroup Inc

Capital Goods

Wittur Holding GmbH

Capital Goods

E+850, 0.5% PIK

(0.5% Max PIK)

Total Senior Secured LoansSecond Lien

Other Senior Secured Debt1.5%

Cleaver-Brooks Inc

Capital Goods

One Call Care Management Inc

Health Care Equipment & Services

Total Other Senior Secured Debt

Subordinated Debt5.3%

Home Partners of America Inc

Total Subordinated Debt

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Asset Based Finance31.0%

Comet Aircraft S.a.r.l., Common Stock

Abacus JV, Private Equity

Altavair AirFinance, Private Equity

Capital Goods

3 unchanged sentences

Diversified Financials

Home Partners JV, Common Stock

Home Partners JV, Structured Mezzanine

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

4 unchanged sentences

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Lenovo Group Ltd, Structured Mezzanine

Technology Hardware & Equipment

Luxembourg Life Fund - Absolute Return Fund I, 1L Term Loan

Luxembourg Life FundLong Term Growth Fund, 1L Term Loan

MP4 2013-2A Class Subord.

Diversified Financials

Luxembourg Life Fund - Absolute Return Fund III, Term Loan

Luxembourg Life Fund - Long Term Growth Fund, Term Loan

(e)(h)(i)(k)(n)

NewStar Clarendon 2014-1A Class D

1 unchanged sentence

Pretium Partners LLC P1, Structured Mezzanine

2.8%, 5.3% PIK

(5.3% Max PIK)

Pretium Partners LLC P2, Structured Mezzanine

2.0%, 7.5% PIK

(7.5% Max PIK)

Sealane Trade Finance

FS KKR Capital Corp.

4 unchanged sentences

Sealane Trade Finance

Toorak Capital Partners LLC, Private Equity

Total Asset Based Finance

Equity/Other5.1%

ASG Technologies, Common Stock

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim

Belk Inc, Common Stock

One Call Care Management Inc, Common Stock

Health Care Equipment & Services

One Call Care Management Inc, Preferred Stock A

Health Care Equipment & Services

One Call Care Management Inc, Preferred Stock B

Health Care Equipment & Services

Zeta Interactive Holdings Corp, Common Stock

Software & Services

Home Partners of America Inc, Common Stock

Total Equity/Other

3 unchanged sentences

Security may be an obligation of one or more entities affiliated with the named company.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a publicly disclosed base rate plus a

basis point spread.

As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.24% and the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar Offer Rate, or CDOR, was 0.48% and

the Australian Interbank Rate, or BBSY or B, was 0.06%.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a

publicly disclosed base rate plus a basis point spread.

As of December 31, 2021, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.21%, the Euro Interbank Offered Rate, or EURIBOR, was (0.57)%, Canadian Dollar

Offer Rate, or CDOR was 0.52%, the Bank Bill Swap Bid Rate, or BBSY was

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

0.12%, the Reykjavik Interbank Offered Rate, or REIBOR, was 2.65%, the Stockholm Interbank Offered Rate, or STIBOR, was (0.05)%, the Sterling Overnight Index Average, or SONIA, was 0.19%, and the

Prime Lending Rate, or Prime, was 3.25%.

PIK means paid-in-kind.

PIK income accruals may be adjusted based on the fair value of the underlying

PIK income accruals may be adjusted based on the fair value of the underlying investment.

Denominated in U.S.

dollars unless otherwise noted.

Fair value determined by the Companys board of directors.

Fair value determined by the Companys board of directors (see Note 8).

Investments classified as Level 3.

Security is an unfunded commitment.

The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual

rate received upon funding.

Asset is on non-accrual status.

Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Goldman Sachs.

Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Citibank, N.A.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Security or portion thereof held within JCF Cayman Ltd and is pledged as collateral supporting the amounts outstanding under the revolving

credit facility with Goldman Sachs.

Security or portion thereof held within Boxwood Drive Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with BNP Paribas.

The stated rate reflects the spread disclosed at the time of commitment and

may not indicate the actual rate received upon funding.

Security or portion thereof held within Big Cedar Creek LLC and is pledged as collateral supporting the amounts

outstanding under the revolving credit facility with BNP Paribas.

Security or portion thereof held within Boxwood Drive Funding and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with BNP Paribas

Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Citibank, N.A.

Security or portion thereof held within Green Creek LLC and is pledged as collateral supporting the amounts

outstanding under the revolving credit facility with Goldman Sachs Bank.

Security or portion thereof held within IC II American Energy Investment, Inc., a wholly-owned subsidiary of the

Security or portion thereof held within JCF Cayman Ltd and is pledged as collateral supporting the amounts

outstanding under the revolving credit facility with Goldman Sachs.

Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Goldman Sachs.

Security is non-income producing.

Strategic Credit Opportunities Partners, LLC Portfolio

Credit Opportunities Partners JV, LLC Portfolio

As of December 31, 2020 (in millions)

1 unchanged sentence

Senior Secured LoansFirst Lien124.6%

1a Smart Start LLC

Technology Hardware & Equipment

1a Smart Start LLC

Technology Hardware & Equipment

A10 Capital LLC

Diversified Financials

ABB CONCISE Optical Group LLC

Apex Group Limited

2 unchanged sentences

Diversified Financials

Apex Group Limited

Diversified Financials

Ardonagh Group Ltd

PIK (2.3% Max

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Ardonagh Group Ltd

Arrotex Australia Group Pty Ltd

Pharmaceuticals, Biotechnology & Life Sciences

BearCom Acquisition Corp

Technology Hardware & Equipment

Arrotex Australia Group Pty Ltd

Pharmaceuticals, Biotechnology & Life Sciences

BearCom Acquisition Corp

8 unchanged sentences

Consumer Services

Brand Energy & Infrastructure Services Inc

Capital Goods

Bugaboo International BV

Consumer Durables & Apparel

(7.8% Max PIK)

Casual Dining Group Ltd

Consumer Services

L+725, 0.8% PIK

(0.8% Max PIK)

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Casual Dining Group Ltd

Consumer Services

Casual Dining Group Ltd

Cambium Learning Group Inc

Consumer Services

15 unchanged sentences

Consumer Services

CommerceHub Inc

Software & Services

Commercial Barge Line Co

Transportation

DB Datacenter Holdings Inc

Software & Services

Health Care Equipment & Services

PIK (1.8% Max

Health Care Equipment & Services

PIK (1.8% Max

CSM Bakery Products

Food, Beverage & Tobacco

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Diamond Resorts International Inc

1 unchanged sentence

Eacom Timber Corp

Frontline Technologies Group LLC

Software & Services

HealthChannels LLC

Health Care Equipment & Services

Highline Aftermarket Acquisition LLC

Automobiles & Components

Huws Gray Ltd

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

Huws Gray Ltd

Commercial & Professional Services

2 unchanged sentences

Commercial & Professional Services

Imagine Communications Corp

Media & Entertainment

Imagine Communications Corp

Media & Entertainment

Print Solutions Inc

Media & Entertainment

Industria Chimica Emiliana Srl

Pharmaceuticals, Biotechnology & Life Sciences

Kellermeyer Bergensons Services LLC

Commercial & Professional Services

Kettle Cuisine LLC

2 unchanged sentences

Commercial & Professional Services

Lionbridge Technologies Inc

Consumer Services

MedAssets Inc

Health Care Equipment & Services

P2 Energy Solutions, Inc.

Software & Services

Parts Authority Inc

Automobiles & Components

Parts Authority Inc

Automobiles & Components

Parts Authority Inc

Automobiles & Components

Parts Town LLC

Precision Global Corp

Premium Credit Ltd

Diversified Financials

Project Marron

2 unchanged sentences

Consumer Services

Quirch Foods Co

Food & Staples Retailing

Sentry Data Systems Inc

Health Care Equipment & Services

FS KKR Capital Corp.

3 unchanged sentences

Interest Rate (b)

Sentry Data Systems Inc

Qdoba Restaurant Corp

Consumer Services

Reliant Rehab Hospital Cincinnati LLC

Health Care Equipment & Services

Sentry Data Systems Inc

Roadrunner Intermediate Acquisition Co LLC

Health Care Equipment & Services

Safe-Guard Products International LLC

Diversified Financials

Capital Goods

Smart & Final Stores LLC

Food & Staples Retailing

SMART Global Holdings Inc

Semiconductors & Semiconductor Equipment

SMART Global Holdings Inc

Semiconductors & Semiconductor Equipment

Staples Canada

Technimark LLC

Total Safety US Inc

Capital Goods

Transaction Services Group Ltd

Consumer Services

Weld North Education LLC

Software & Services

Virgin Pulse Inc

Software & Services

Yak Access LLC

Capital Goods

Total Senior Secured LoansFirst Lien

2 unchanged sentences

Senior Secured LoansSecond Lien28.9%

Access CIG LLC

Commercial & Professional Services

Ammeraal Beltech Holding BV

1 unchanged sentence

BCA Marketplace PLC

Casual Dining Group Ltd

Consumer Services

(11.5% Max PIK)

Resource Label Group LLC

Watchfire Enterprises Inc

Excelitas Technologies Corp

Technology Hardware & Equipment

Wittur Holding GmbH

Capital Goods

PIK (0.5% Max

FS KKR Capital Corp.

3 unchanged sentences

Interest Rate (b)

Software & Services

Resource Label Group LLC

Capital Goods

L+1,075, 0.0%

SIRVA Worldwide Inc

Commercial & Professional Services

Watchfire Enterprises Inc

Technology Hardware & Equipment

WireCo WorldGroup Inc

Capital Goods

Wittur Holding GmbH

Capital Goods

Total Senior Secured LoansSecond Lien

Other Senior Secured Debt1.0%

Cleaver-Brooks Inc

Capital Goods

Total Other Senior Secured Debt

Subordinated Debt5.3%

Home Partners of America Inc

Kenan Advantage Group Inc

Transportation

Software & Services

Total Subordinated Debt

2 unchanged sentences

Capital Goods

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Investment Portfolio (continued)

Interest Rate (b)

GA Capital Specialty Lending Fund, Limited Partnership Interest

2 unchanged sentences

Diversified Financials

KKR Zeno Aggregator LP (K2 Aviation)

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

Capital Goods

3 unchanged sentences

Technology Hardware & Equipment

Luxembourg Life Fund - Absolute Return Fund I, 1L Term Loan

Luxembourg Life Fund - Long Term Growth Fund, 1L Term Loan

MP4 2013-2A Class Subord.

Diversified Financials

NewStar Clarendon 2014-1A

NewStar Clarendon 2014-1A Class D

Diversified Financials

Pretium Partners LLC P1, Structured Mezzanine

2.8%, 5.3% PIK

(5.3% Max PIK)

Pretium Partners LLC P2, Structured Mezzanine

2.0%, 7.5% PIK

(7.5% Max PIK)

Sealane Trade Finance

9 unchanged sentences

Software & Services

Casual Dining Group Ltd, Common Stock

Consumer Services

Home Partners of America Inc, Common Stock

4 unchanged sentences

Security may be an obligation of one or more entities affiliated with the named company.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a publicly disclosed base rate plus a

basis point spread.

As of December 31, 2019, the three-month London Interbank Offered Rate, or LIBOR or L, was 1.91% and the Euro Interbank Offered Rate, or EURIBOR, was (0.38)% and the Australian Interbank Rate, or BBSY or

B, was 0.92%.

Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a

publicly disclosed base rate plus a basis point spread.

As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.24% and the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar

Offer Rate, or CDOR, was 0.48% and the Australian Interbank Rate, or BBSY or B, was 0.06%.

PIK means paid-in-kind.

PIK income accruals may be adjusted based on the fair value of the underlying investment.

PIK income accruals may be adjusted based

on the fair value of the underlying investment.

Denominated in U.S.

3 unchanged sentences

Security is an unfunded commitment.

The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual

rate received upon funding.

Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Goldman Sachs.

Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the

revolving credit facility with Citibank, N.A.

The stated rate reflects the spread disclosed at the time of commitment and

may not indicate the actual rate received upon funding.

Asset is on non-accrual status.

Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Goldman Sachs.

Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with Citibank, N.A.

Security or portion thereof held within JCF Cayman Ltd and is pledged as collateral supporting the amounts

outstanding under the revolving credit facility with Goldman Sachs.

Security or portion thereof held within Boxwood Drive Funding LLC and is pledged as collateral supporting the

amounts outstanding under the revolving credit facility with BNP Paribas.

Security is non-income producing.

FS KKR Capital Corp.

2 unchanged sentences

Investment Portfolio (continued)

Below is selected balance sheet information for SCJV as of December 31, 2020 and

Below is selected balance sheet information for COPJV as of December 31, 2021 and 2020:

Selected Balance Sheet Information

4 unchanged sentences

Members equity

Below is selected statement of operations information for SCJV for

Below is selected statement of operations information for COPJV for

the years ended December 31, 2021 and 2020:

10 unchanged sentences

Financial Instruments

The following is a summary of the fair value and location of the Companys derivative instruments in the consolidated balance sheets held as of December 31, 2020 and 2019:

The following is a summary of the fair value and location of the Companys derivative instruments in the consolidated balance sheets held

as of December 31, 2021 and 2020:

Derivative Instrument

13 unchanged sentences

Statement Location

Cross currency swaps

Net realized gain (loss) on swap contracts

Foreign currency forward contracts

3 unchanged sentences

Statement Location

Cross currency swaps

Net change in unrealized appreciation (depreciation) on swap contracts

Foreign currency forward contracts

2 unchanged sentences

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 Companys unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the condensed consolidated statements of assets and liabilities.

The following tables

present the Companys 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 December 31, 2020 and 2019:

These agreements include provisions to offset positions

with the same counterparty in the event of default by one of the parties.

The Companys unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the condensed consolidated

statements of assets and liabilities.

The following tables present the Companys 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 December 31, 2021 and 2020:

December 31, 2021

Assets Subject

Assets Subject to

Master Netting

Available for

Cash Collateral

Net Amount of

2 unchanged sentences

Available for

Cash Collateral

Net Amount of

Liabilities (3)

7 unchanged sentences

Liabilities (3)

JP Morgan Chase Bank

In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

Net amount of derivative assets represents the net amount due from the counterparty to the Company.

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 Companys 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

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 cross currency swaps during the year ended December 31, 2019 was $103.6.

The average notional

balance for foreign currency forward contracts during the year ended December 31, 2020 and 2019 was $41.2 and $198.6, respectively.

See consolidated schedule of investments for the Companys open foreign currency forward contracts.

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

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Fair Value of Financial

Instruments (continued)

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.

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:

Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Inputs that are quoted prices for similar assets or liabilities in active markets.

Inputs that are unobservable for an asset or liability.

A financial instruments categorization within the valuation hierarchy is based upon the lowest level of input that is significant to

the fair value measurement.

As of December 31, 2020 and 2019, the Companys investments and secured borrowing were

categorized as follows in the fair value hierarchy:

Valuation Inputs

December 31, 2020

December 31, 2019

Level 1Price quotations in active markets

Level 2Significant other observable inputs

Level 3Significant unobservable inputs

Investments measured at net asset 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 sheet.

The Companys 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 borrowers 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 Companys 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, 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 Companys board of directors 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.

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 Company typically values its

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 Company 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 Companys management in purchasing and selling these investments, the Company believes that these prices are reliable indicators of fair value.

The valuation committee of the Companys board of directors

and the board of directors reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Companys valuation policy.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Fair Value of Financial

Instruments (continued)

The following is a reconciliation for the years ended December 31, 2020 and 2019 of

investments for which significant unobservable inputs (Level 3) were used in determining fair value:

For the Year Ended December 31, 2020

Fair value at beginning of period

Accretion of discount (amortization of premium)

Net realized gain (loss)

Net change in unrealized appreciation (depreciation)

Paid-in-kind interest

Sales and repayments

Net transfers in or 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 Year Ended December 31, 2019

Fair value at beginning of period

Accretion of discount (amortization of premium)

Net realized gain (loss)

Net change in unrealized appreciation (depreciation)

Paid-in-kind interest

Sales and repayments

Net transfers in or 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

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value

measurements as of December 31, 2020 and 2019 were as follows:

Type of Investment

December 31, 2020

Technique (1)

Discounted Cash Flow

Discount Rate

5.7% - 18.6% (9.0%)

EBITDA Multiple

0.1x - 12.7x (7.2x)

Subordinated Debt

Discounted Cash Flow

Discount Rate

12.3% - 12.3% (12.3%)

EBITDA Multiple

7.8x - 11.5x (7.8x)

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Fair Value of Financial

Instruments (continued)

Type of Investment

December 31, 2020

Technique (1)

Asset Based Finance

EBITDA Multiple

1.0x - 12.0x (3.6x)

Discounted Cash Flow

Discount Rate

4.2% - 15.2% (9.9%)

EBITDA Multiple

0.1x - 12.5x (7.4x)

Option Pricing Model

Equity Illiquidity Discount

11.0% - 50.0% (11.9%)

Type of Investment

December 31, 2019

Technique (1)

an Increase in

Discounted Cash Flow

Discount Rate

6.30% - 19.10% (9.79%)

EBITDA Multiple

2.05x - 21.05x (6.98x)

Subordinated Debt

Discounted Cash Flow

Discount Rate

11.20% - 20.80% (14.80%)

EBITDA Multiple

8.15x - 10.40x (8.89x)

Option Pricing Model

Equity Illiquidity Discount

25.00% - 25.00% (25.00%)

Asset Based Finance

EBITDA Multiple

1.00x - 13.00x (4.37x)

Discounted Cash Flow

Discount Rate

7.80% - 16.00% (12.16%)

Indicative Dealer Quotes

4.73% - 32.70% (32.36%)

EBITDA Multiple

0.18x - 15.60x (7.77x)

Option Pricing Model

Equity Illiquidity Discount

20.00% - 30.00% (20.13%)

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.

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.

Fair value based on expected outcome of proposed corporate transactions and/or other factors.

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

Effective June 15, 2019, the Companys asset coverage requirement applicable to senior securities was reduced from 200% to 150%.

As of December 31, 2020, the aggregate amount outstanding of senior securities issued by

the Company was $4,042.

As of December 31, 2020, the Companys asset coverage was 177%.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Financing Arrangements (continued)

The following tables present summary information with respect to the Companys

outstanding financing arrangements as of December 31, 2020 and 2019:

As of December 31, 2020

Type of Arrangement

Maturity Date

CCT Tokyo Funding Credit Facility (2)

Revolving Credit Facility

L+1.75% - 2.00% (1)(3)

December 2, 2023

Senior Secured Revolving Credit Facility (2)

Revolving Credit Facility

December 23, 2025

4.750% Notes due 2022 (6)

Unsecured Notes

5.000% Notes due 2022 (6)

Unsecured Notes

June 28, 2022

4.625% Notes due 2024 (6)

Unsecured Notes

July 15, 2024

4.125% Notes due 2025 (6)

Unsecured Notes

February 1, 2025

8.625% Notes due 2025 (6)

Unsecured Notes

3.400% Notes due 2026 (6)

Unsecured Notes

January 15, 2026

CLO-1 Notes (2)(7)

Collateralized Loan Obligation

L+1.85% - 3.01% (1)

January 15, 2031

LIBOR is subject to a 0% floor.

The carrying amount outstanding under the facility approximates its fair value.

The spread over LIBOR is determined by reference to the amount outstanding under the facility.

The spread over LIBOR 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.

Amount includes borrowing in Euros, Canadian dollars, pounds sterling and Australian dollars.

Euro balance outstanding of 164 has been

converted to U.S.

dollars at an exchange rate of 1.00 to $1.22 as of December 31, 2020 to reflect total amount outstanding in U.S.

Canadian dollar balance outstanding of CAD $63 has been converted to U.S dollars at an exchange

rate of CAD $1.00 to $0.78 as of December 31, 2020 to reflect total amount outstanding in U.S.

Pounds sterling balance outstanding of £111 has been converted to U.S dollars at an exchange rate of £1.00 to $1.37 as of

December 31, 2020 to reflect total amount outstanding in U.S.

Australian dollar balance outstanding of A$6 has been converted to U.S dollars at an exchange rate of A$1.00 to $0.77 as of December 31, 2020 to reflect total amount

outstanding in U.S.

As of December 31, 2020, the fair value of the 4.750% notes, the 5.000% notes, the 4.625% notes, the 4.125% notes, the 8.625% notes and

the 3.400% notes was approximately $468, $245, $422, $490, $285 and $994 respectively.

These valuations are considered Level 2 valuations within the fair value hierarchy.

As of December 31, 2020, there were $281.4 of Class A-1R notes outstanding at L+1.85%, $20.5 of Class A-2R notes outstanding at

L+2.25%, $32.4 of Class B-1R notes outstanding at L+2.60% and $17.4 of Class B-2R notes outstanding at 3.011%.

As of December 31, 2019

Type of Arrangement

Maturity Date

CCT Tokyo Funding Credit Facility (2)

Revolving Credit Facility

Locust Street Credit Facility (2)

Revolving Credit Facility

September 28, 2022

Senior Secured Revolving Credit Facility (2)

Revolving Credit Facility

L+1.75% - 2.00% (1)(4)

November 7, 2024

4.750% Notes due 2022 (6)

Unsecured Notes

5.000% Notes due 2022 (6)

Unsecured Notes

June 28, 2022

4.625% Notes due 2024 (6)

Unsecured Notes

July 15, 2024

4.125% Notes due 2025 (6)

Unsecured Notes

February 1, 2025

CLO-1 Notes (2)(7)

Collateralized Loan Obligation

L+1.70% - 2.50% (1)

July 15, 2030

LIBOR is subject to a 0% floor.

The carrying amount outstanding under the facility approximates its fair value.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Financing Arrangements (continued)

The spread over LIBOR is determined by reference to the amount outstanding under the facility.

The spread over LIBOR 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.

Amount includes borrowing in Euros, Canadian dollars, pounds sterling and Australian dollars.

Euro balance outstanding of 291 has been

converted to U.S.

dollars at an exchange rate of 1.00 to $1.12 as of December 31, 2019 to reflect total amount outstanding in U.S.

Canadian dollar balance outstanding of CAD $69 has been converted to U.S dollars at an exchange

rate of CAD $1.00 to $0.77 as of December 31, 2019 to reflect total amount outstanding in U.S.

Pounds sterling balance outstanding of £100 has been converted to U.S dollars at an exchange rate of £1.00 to $1.33 as of

December 31, 2019 to reflect total amount outstanding in U.S.

Australian dollar balance outstanding of A$173 has been converted to U.S dollars at an exchange rate of A$1.00 to $0.70 as of December 31, 2019 to reflect total amount

outstanding in U.S.

As of December 31, 2019, the fair value of the 4.750% notes, the 5.000% notes, the 4.625% notes and the 4.125% notes was approximately

$467, $250, $416 and $478, respectively.

These valuations are considered Level 2 valuations within the fair value hierarchy.

As of December 31, 2019, there were $299.4 of Class A-1 notes outstanding at L+1.70% and

$52.3 of Class A-2 notes outstanding at L+2.50%.

For the years

ended December 31, 2020, 2019 and 2018, the components of total interest expense for the Companys financing arrangements were as follows:

Year Ended December 31,

Arrangement (1)

CCT New York Funding Credit Facility (2)

CCT Tokyo Funding Credit Facility (2)

Hamilton Street Funding Credit Facility (2)

ING Credit Facility (2)

Locust Street Funding Credit Facility (2)

Senior Secured Revolving Credit Facility (2)

4.000% Notes due 2019

4.250% Notes due 2020

4.750% Notes due 2022

5.000% Notes due 2022

4.625% Notes due 2024

4.125% Notes due 2025

8.625% Notes due 2025

3.400% Notes due 2026

Borrowings of each of the Companys 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.

Direct interest expense includes the effect of non-usage fees.

The Companys average borrowings and weighted average interest rate, including the

effect of non-usage fees, for the year ended December 31, 2020 were $4,240 and 3.71%, respectively.

As of December 31, 2020, the Companys weighted average effective interest

rate on borrowings, including the effect of non-usage fees, was 3.88%.

The Companys average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended

December 31, 2019 were $3,642 and 4.49%, respectively.

As of December 31, 2019, the Companys weighted average effective interest rate on borrowings, including the

effect of non-usage fees, was 4.01%.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Financing Arrangements (continued)

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

December 31, 2020 and December 31, 2019.

CCT New York Funding Credit Facility

On November 29, 2016, CCT New York Funding LLC, or CCT New York Funding, a wholly owned special purpose financing subsidiary of the

Company, entered into a revolving credit facility, or the CCT New York Funding Credit Facility, pursuant to a loan and security agreement, or the CCT New York Funding Loan Agreement, with JPMorgan Chase Bank, National Association, or JPMorgan, as

administrative agent and lender, any additional lenders from time to time party thereto, the collateral administrator, collateral agent and securities intermediary party thereto, and the Company, which succeeded CCT as the portfolio manager.

The CCT New York Funding Credit Facility provided for borrowings in an aggregate principal amount up to $300.

In connection with amending and restating the Locust Street Loan Agreement, the Company repaid and terminated the CCT New York Funding

Credit Facility.

CCT Tokyo Funding Credit Facility

On December 2, 2015, CCT Tokyo Funding LLC, or CCT Tokyo Funding, a wholly owned special purpose financing subsidiary of the Company, entered into a revolving credit facility, or as amended the CCT

Tokyo Funding Credit Facility, pursuant to a loan and servicing agreement with Sumitomo Mitsui Banking Corporation, or SMBC, as the administrative agent, collateral agent, and lender, and the Company, which succeeded CCT as the servicer and

The CCT Tokyo Funding Credit Facility provides for borrowings in an aggregate principal amount up to $300.

The end of the reinvestment period and the maturity date for the CCT Tokyo Funding Credit Facility are June 2, 2021 and December 2, 2023, respectively.

CCT Tokyo Funding may elect to extend both the reinvestment period and maturity date by

an additional six months to December 2, 2021 and June 2, 2024, respectively, subject to satisfaction of certain conditions.

Advances under the CCT Tokyo Funding Credit Facility are subject to a borrowing base test.

Advances outstanding under the CCT Tokyo Funding Credit Facility bear interest at a rate equal to (i) for loans for which CCT Tokyo

Funding elects the base rate option, the higher of (A) the Prime Rate (as defined in the CCT Tokyo Funding loan and servicing agreement) or (B) the federal funds effective rate plus 0.50%, plus a spread of 0.75% per annum, or

(ii) for loans for which CCT Tokyo Funding elects the LIBOR rate option, three-month LIBOR plus a spread of 1.75% per annum.

In each case, the spread increases by 0.25% per annum if the average daily amount of advances outstanding during the

relevant remittance period does not exceed $150.

Effective June 2, 2016, CCT Tokyo Funding began paying a quarterly non-usage fee of 0.35% per annum on any unborrowed amounts up to a threshold amount

equal to the lesser of (i) 50% of the borrowing base during the relevant remittance period and (ii) $150, and 0.875% per annum on any unborrowed amounts above such threshold amount.

In connection with the CCT Tokyo Funding Credit Facility, CCT Tokyo Funding has made certain representations and warranties and is

required to comply with various covenants, reporting requirements and other customary requirements for similar facilities.

The CCT Tokyo Funding Credit Facility contains customary events of default for similar financing transactions.

occurrence and during the continuance of an event of default, the administrative agent may declare the outstanding advances and all other obligations under the CCT Tokyo Funding Credit Facility immediately due and payable.

CCT Tokyo Fundings obligations to SMBC under the CCT Tokyo Funding Credit Facility are secured by a first priority security interest

in substantially all of the assets of CCT Tokyo Funding, including its portfolio of assets.

The obligations of CCT Tokyo Funding under the CCT Tokyo Credit Facility are non-recourse to the Company.

FS KKR Capital Corp.

Notes to Consolidated Financial Statements (continued)

(in millions, except share and per share amounts)

Financing Arrangements (continued)

Locust Street Credit Facility

On November 1, 2016, Locust Street Funding, LLC, or Locust Street, a wholly owned special purpose financing subsidiary of the

Company, entered into a loan agreement, or the Locust Street Loan Agreement and, together with the related transaction documents as subsequently amended and restated, the Locust Street Credit Facility, with JPMorgan, as lender and administrative

agent, Citibank, N.A., as collateral agent and securities intermediary, and Virtus Group, LP, as collateral administrator, pursuant to which JPMorgan advanced a $625 term loan to Locust Street.

Borrowings outstanding under the Locust Street Credit

Facility equally beared interest at a rate equal to three-month LIBOR plus a spread of 2.6833% per annum.

Interest was payable quarterly in arrears.

Under the Locust Street Loan Agreement, Locust Street agreed to repay $200 of the aggregate

principal amount of the advances on or before January 31, 2017, which repayment was satisfied in full in December 2016.

All remaining outstanding advances under the Locust Street Loan Agreement were scheduled to mature, and all accrued

and unpaid interest thereunder, was due and payable, on November 1, 2020.

On March 4, 2019, CCT New York Funding

merged with and into Locust Street, and concurrently, Locust Street entered into an Amended and Restated Loan and Security Agreement, or the Locust Street Amended and Restated Loan Agreement, with JPMorgan, as administrative agent, each of the

lenders party thereto, and Wells Fargo Bank, National Association, as collateral agent, securities intermediary, and collateral administrator, amending and restating the Locust Street Loan Agreement.

Locust Street used a portion of the proceeds of

additional borrowings under the Locust Street Amended and Restated Loan Agreement to repay and terminate the CCT New York Funding Credit Facility.

The Locust Street Credit Facility provided for revolving borrowings in U.S.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data