FS KKR Capital Corp. II, previously known as FS Investment Corp II, functions as a business development company. Its investment strategy centers on private, middle-market companies, with a primary emphasis on a diverse range of debt instruments. These include floating-rate senior secured loans (both first and second lien), senior secured bonds, subordinated debt, collateralized securities, corporate bonds, and other debt-based holdings. The firm also acquires equity interests, such as warrants, options, or minority positions in common or preferred shares, frequently in conjunction with its debt investments or through co-investments with financial sponsors like institutional investors or private equity firms. The company explicitly shies away from substantial investments in early-stage start-ups, turnaround scenarios, or entities possessing speculative business models. Its sector focus is remarkably expansive, spanning numerous industries including consumer services, energy, capital goods, software, telecommunications, financial services, materials, automotive, commercial services, media, technology hardware, healthcare, insurance, retail, transportation, pharmaceuticals, biotechnology, food and beverage, household products, real estate, and utilities. Geographically, it prioritizes private businesses based in the United States, though it can also invest in non-U.S. securities, whether denominated in U.S. dollars or other currencies, within the boundaries set by the 1940 Act. The fund procures interests in loans either through secondary market transactions in the "over-the-counter" institutional loan market or directly from its target companies. It may also secure board representation or observation rights within its portfolio companies.