Profile: Fifth Street Finance Corp (FSC.OQ)
18 Jan 2017
Fifth Street Finance Corp., incorporated on October 9, 2007, is a specialty finance company. The Company is a closed-end, non-diversified management investment company. The Company acts as a business development company (BDC). The Company's investment objective is to maximize its portfolio's total return by generating current income from its debt investments, and capital appreciation from its equity investments. The Company lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors. The Company seeks to invest in companies in connection with private equity sponsors.
As of September 30, 2016 the Company's portfolio included 129 investments, 110 of which were completed in connection with investments by private equity sponsors, and 18 of which were in private equity funds. The Company's first lien loans have terms of 4 to 6 years. The first lien loans provide for a variable or fixed interest rate, contain prepayment penalties and are secured by a first priority security interest in all existing and future assets of the borrower. The Company's first lien includes revolving lines of credit, term loans and acquisition lines of credit. The Company's second lien loans, which have terms of 5 to 7 years, primarily provide for a fixed interest rate, contain prepayment penalties and are secured by a second priority security interest in all existing and future assets of the borrower. The Company's second lien loans include payment-in-kind (PIK), interest, which represents contractual interest accrued and added to the principal that becomes due at maturity. The Company's unsecured investments generally have terms of 5 to 7 years and provide for a fixed interest rate. The Company's unsecured investments may include PIK interest and an equity component, such as warrants to purchase common stock in the portfolio company.
The Company's investments principally consist of loans, purchased equity investments and equity grants in privately held companies and Senior Loan Fund JV I, LLC (SLF JV I). The Company invests in sectors, such as healthcare services; Internet software and services; multi-sector holdings; advertising; healthcare equipment; environmental and facilities services; diversified support services; data processing and outsourced services; airlines; construction and engineering; research and consulting services; pharmaceuticals; integrated telecommunication services; information technology (IT) consulting and other services; application software; specialty stores; industrial machinery; oil and gas equipment services; leisure facilities; air freight and logistics; consumer electronics; home improvement retail; education services; auto parts and equipment; apparel, accessories and luxury goods; restaurants; specialized consumer services; commercial printing, and human resources and employment services. Fifth Street Management LLC is the Company's investment advisor.
Fifth Street Finance Corp
777 W Putnam Ave Ste 3
GREENWICH CT 06830-5014