Alston & Bird partner Rosemarie Thurston [photo, right] is advising a broker-dealer that’s managing the initial public offering of a newly formed business development company.

Thurston’s client, FS² Capital Partners LLC of Orlando, Fla., is the broker-dealer for FS Investment Corp. FS Investment Corp. was established earlier this year, under the terms of the Investment Company Act of 1940, as a business development company. A BDC is a fund that provides individual investors the opportunity to invest in private equity and private debt offerings.

Some BDCs, such as Apollo Investment Corp. and BlackRock Kelso Capital Corp., are publicly traded. However, FS Investments Corp.’s shares will not be publicly traded, the company said. FS Investment Corp.’s offering will be the first “non-listed” public offering by a BDC, according to FS Investment Corp.’s legal counsel, Sutherland partners Steven Boehm and Cynthia Krus in Washington.

FS Investment Corp., based in Philadelphia, said in regulatory filings that it plans to offer equity and debt investments in small and medium-sized, privately owned U.S. companies.

FS² Capital Partners is affiliated with FS Investment Corp. FS Investment Corp. was formerly known as Franklin Square Investment Corp.