Fifth Street Asset Management
| Company type | Public company |
|---|---|
| Industry | Asset management |
| Founded | 1998 |
| Founder | Leonard M. Tannenbaum |
| Headquarters | Greenwich , United States |
Area served | United States |
Key people | Leonard M. Tannenbaum (Founder) |
| Products | Credit investments, Business Development Companies (BDCs) |
Number of employees | 100+ |
| Parent | Oaktree Capital Management (management responsibilities since 2017) |
Fifth Street Asset Management Inc. was a U.S.-based asset management firm registered with the SEC, concentrating on credit investments primarily aimed at lending to small and mid-sized enterprises with annual revenues generally ranging from $25 million to $500 million. Established by Leonard M. Tannenbaum, the company pursued a focused business approach serving this particular market segment.
The company's main headquarters were located in Greenwich, with additional key offices situated in Silicon Valley, Dallas, and Chicago. Fifth Street managed assets exceeding $6 billion through two publicly traded Business Development Companies (BDCs): Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp., alongside several private investment funds. Fifth Street Finance Corp. was publicly traded on NASDAQ under the symbol FSC.
Employing over 100 professionals, including senior leadership and board members who collectively owned roughly 1.5% of Fifth Street Finance Corp.’s shares and 6.0% of those in Fifth Street Senior Floating Rate Corp., the firm demonstrated substantial insider ownership aligned with its corporate objectives.
In October 2017, management responsibilities for Fifth Street’s two publicly listed BDCs transitioned to Oaktree Capital Management, representing a strategic shift in the company’s organizational framework and worldwide operations.
History
The inception of the Fifth Street entities dates back to 1998, founded by Leonard M. Tannenbaum.
Fifth Street Asset Management controlled two publicly listed business development companies: Fifth Street Finance Corporation, launched in 1998 and going public in 2008, and Fifth Street Senior Floating Rate Corporation, which was formed in 2013.
In 2014, Fifth Street Finance entered into joint ventures with Kemper Corporation involving $200 million in equity commitments and $400 million in leverage, facilitating expanded debt distribution capabilities. Comparable partnerships were also established with Solar Capital and THL Credit. Additionally, Fifth Street Asset Management oversaw two senior loan funds.
Nonetheless, mid-2014 decisions to issue shares at discounted rates led to significant dilution of existing shareholders’ equity, resulting in considerable losses for investors.
Fifth Street Asset Management completed its initial public offering on the NASDAQ (NASDAQ: FSAM) in October 2014 after initially postponing and subsequently halving the size of the offering. Shares debuted at $17 but dropped 21% to close at $13.37 on the first day of trading.
For the quarter ending March 31, 2015, total revenues increased by 4.6% to reach $24.9 million, supported by a 22.4% rise in fee-generating assets under management (AUM). Management fees comprised 94.8% of overall revenue.
On July 14, 2017, Oaktree Capital Management took over management duties for Fifth Street’s two BDCs—Fifth Street Finance Corp and Fifth Street Senior Floating Rate Corp—rebranding them as Oaktree Specialty Lending Corp and Oaktree Strategic Income Corp respectively. This acquisition was finalized on October 17, 2017.
Recognitions
Fifth Street Finance Corp. maintained an investment grade rating from Standard & Poor's and was ranked among the leading Business Development Companies by market capitalization. The firm received the 2014 ACG New York Champion's Award for "Senior Lender Firm of the Year" and was honored as the 2013 Mergers & Acquisitions Mid-Market Lender of the Year.
Local Engagement
Fifth Street Asset Management collaborates with organizations such as GE, Ernst & Young, KPMG, and UBS to back the Junior Achievement initiative, fostering entrepreneurial skills among youth in Connecticut.
External links
- Fifth Street Asset Management (official website)