Fifth Street reports asset, income growth

Fifth Street Finance Corp, the Greenwich, Connecticut-based publicly traded business development company, has reported increases in assets and net investment income for the quarter and year ending 30 September, which Fifth Street counts as the end of its fiscal year. The BDC’s assets are now at $2.7 billion compared to $2.1 billion on 30 September last year, Fifth Street reported in its earnings release yesterday (1 December). Net investment income for the quarter was $37.5 million compared with $28.7 million for the same quarter last year. For the past fiscal year, net investment income also rose to $142.6 million from $115 million for the 2013 fiscal year.

The vehicle had an active quarter in terms of deal making. It closed on $394.4 million of investments with nine deals being new and five with existing portfolio companies. This was higher than its $307.4 million deal amount in the same quarter last year, although that money was spread across more portfolio companies including 10 new deals and seven existing at the time.

As of 30 September 2014, the portfolio consisted of investments in 124 companies, 104 of which involved private equity sponsors. Fifth Street Finance Corp’s weighted average yield on debt investments at 30 September 2014 was 11.1 percent and included a cash component of 9.9 percent.

Fifth Street Finance Corp. is a specialty finance company managed by a subsidiary of Fifth Street Asset Management. The lender also runs another BDC, the Fifth Street Senior Floating Rate Corp.