Fifth Street Management, the Greenwich, CT-based lender, has closed its Fifth Street Senior Loan Fund II at $305 million. The fund is a multi-tranche financing facility that will target mid-market senior secured loans. The fund raised capital from several institutional investors, using Natixis, the Paris-headquartered investment bank and asset manager, for distribution help, Fifth Street announced on Tuesday.
The fund’s investments will be sourced and underwritten through Fifth Street's own mid-market origination platform. SLF II will continue the strategy initiated by Fifth Street Senior Loan Fund I, a $210 million pool of capital that closed in Feb., 2014. Another senior-debt strategy that the firm recently launched is its Fifth Street Senior Floating Rate Corp., a publicly traded BDC that recently reached its one-year anniversary and has a high-quality portfolio comprised entirely of 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,” Ivelin Dimitrov, Fifth Street's chief investment officer, said in statement. SLF II obtained financing through a credit facility for which Natixis served as the sole lead arranger and placement agent. The credit facility is comprised of three tranches with ratings ranging from AAA through BBB
Fifth Street Management has $5 billion under management and focuses on credit strategies. The firm manages a number of private funds and runs two publicly-traded business development companies, Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp. The firm mainly deals in one-stop financings, first lien, second lien, mezzanine debt and equity co-investments. The platform can hold loans up to $150 million, commit up to $250 million and structure and syndicate transactions up to $500 million.