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Fifth Street Management Closes $305MM Senior Loan Fund

September 03, 2014, 07:13 AM
Filed Under: Industry News

Fifth Street Management ("Fifth Street") announced the closing of Fifth Street Senior Loan Fund II, LLC ("SLF II"), a $305 million multi-tranche financing facility that will invest in middle-market senior secured loans. SLF II raised capital in partnership with a number of institutional investors utilizing advisory services of Natixis. SLF II's portfolio of assets will be sourced and underwritten through Fifth Street's leading middle market origination platform, which provides differentiated access to deal flow and allows investors to selectively participate in investment opportunities that generate favorable risk-adjusted returns.

SLF II is designed to continue the strategy initiated by Fifth Street Senior Loan Fund I, LLC, a $210 million pool of capital that successfully closed in February 2014. Together, the funds represent another step towards supporting clients through an expanded suite of investment vehicles focused on senior secured middle market loans. Another senior-focused Fifth Street affiliated vehicle recently launched is Fifth Street Senior Floating Rate Corp. FSFR, +0.49% which just celebrated its one-year anniversary as a public company and has a high-quality portfolio of 100% senior secured floating rate loans.

"We are excited to announce our newest offering, which gives us even greater flexibility to meet the needs of private equity sponsors and portfolio companies," stated Ivelin M. Dimitrov, Fifth Street's Chief Investment Officer, adding, "SLF II extends our senior focus, which is gaining widespread recognition, as evidenced by our being named 'Senior Lender Firm of the Year' at the 4th Annual ACG New York Champion's Awards held earlier this year."

SLF II obtained financing through a credit facility for which Natixis served as sole lead arranger and placement agent. The credit facility is comprised of three tranches with DBRS, Inc. ratings ranging from AAA(sf) through BBB(sf).

With $5 billion in assets under management, Fifth Street Management LLC is a leading alternative asset manager with a core focus on credit strategies. The firm manages a number of private funds and is the SEC-registered investment adviser of two publicly-traded business development companies, Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp.

Natixis is the corporate, investment and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 36 million clients spread over two retail banking networks, Banque Populaire and Caisse d'Epargne.

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