Fifth Street Asset Management (NASDAQ: FSAM) shares fell 3% this morning on news that the company has signed a definitive asset purchase agreement with Oaktree Capital Management, L.P., an affiliate of Oaktree Capital Group, LLC (NYSE: OAK). Per the agreement, Oaktree will become the new investment adviser to two Business Development Companies (BDCs): Fifth Street Finance Corp. (NASDAQ: FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ: FSFR). Upon closing of the transaction, Oaktree will pay gross cash consideration of $320 million to Fifth Street Management LLC and replace FSM as the investment adviser to the BDCs. An Oaktree affiliate will become their administrator. “We believe this transaction combining FSAM’s established presence in the BDC space and Oaktree’s deep credit expertise offers a compelling value for FSAM’s assets and allows the FSC and FSFR stockholders to participate in the future growth potential of the portfolio under a larger, more diversified manager led by a highly experienced investment team,” FSAM chairman and chief executive officer Leonard M. Tannenbaum stated in the news release.
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About Fifth Street Asset Management
Fifth Street Asset Management Inc. (NASDAQ:FSAM) is a nationally recognized credit-focused asset manager. The firm has over $4 billion of assets under management across two publicly-traded business development companies, Fifth Street Finance Corp. (NASDAQ: FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ: FSFR), as well as multiple private investment vehicles. The Fifth Street platform provides innovative and customized financing solutions to small and mid-sized businesses across the capital structure through complementary investment vehicles and co-investment capabilities. With a nearly 20-year track record focused on disciplined credit investing across multiple economic cycles, Fifth Street is led by a seasoned management team that has issued billions of dollars in public equity, private capital and public debt securities. Fifth Street’s national origination strategy, proven track record and established platform have allowed the firm to surpass $10 billion of loan commitments since inception. For more information, please visit fsam.fifthstreetfinance.com.
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