Fifth Street senior loan fund invests $156.5 million in secured loans

By Susanna Moon

Chicago, July 2 – Fifth Street Finance Corp. said the Senior Loan Fund JV 1, LLC, a joint venture between Fifth Street and a subsidiary of Kemper Corp., has initially invested $156.5 million in a diversified portfolio of senior secured loans.

The expected investment capacity of the fund is about $300 million, according to a press release by Fifth Street.

The initial portfolio of assets, sourced through Fifth Street’s platform, is funded with leverage of $101.5 million provided by Deutsche Bank AG, New York Branch and equity of $55 million, with 87.5% funded by Fifth Street and 12.5% funded by Kemper.

The fund closed on a $200 million revolving credit facility with Deutsche Bank, which should allow the joint venture to use leverage up to a ratio of about 2 times debt to equity, the release noted.

Fifth Street said it expects to continue funding the fund to its target size of $300 million through the September quarter.

The company said it is in “active discussions with several other third parties about additional senior loan fund partnerships.”

Fifth Street is a White Plains, N.Y.-based specialty finance company that provides financing to small and mid-sized companies, primarily in connection with investments by private equity sponsors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.