Fifth Street, Trinity double Senior Loan Fund JV I to $200 million

By Tali Rackner

Norfolk, Va., Oct. 8 – Fifth Street Finance Corp. (FSC) announced an increase in the commitment to Senior Loan Fund JV I, LLC, its joint venture with Kemper Corp. subsidiary Trinity Universal Insurance Co., doubling the commitment to $200 million, according to a press release.

Fifth Street will continue to own 87.5% of SLF JV I alongside a 12.5% contribution from Kemper.

As previously reported, the joint venture is expected to invest primarily in middle-market and other corporate debt securities.

"The expansion of SLF JV I further demonstrates the strength of FSC's long-standing relationship with the investment team at Kemper. The additional capacity allows FSC to continue leveraging the Fifth Street origination platform to provide an array of financing solutions to support the needs of our private equity clients," Fifth Street chief executive officer Leonard M. Tannenbaum said in the release.

"Growing SLF JV I and other similar joint ventures should be a key component in driving future earnings growth. I am pleased that FSC is generating a mid-teens return on its investment in SLF JV I."

Fifth Street is a White Plains, N.Y.-based specialty finance company that originates and invests in one-stop financings and first-lien, second-lien and mezzanine debt and equity co-investments for small and mid-sized companies. Kemper is a Chicago-based insurance company.

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