Fifth Street Management‘s venture lending group Fifth Street Technology Partners has closed three new technology investments totaling $55 million. Fifth Street Finance Corp funded the transactions and received equity warrants for each, increasing the size of Fifth Street’s venture lending portfolio to $79 million.
Fifth Street Management LLC (“Fifth Street”) today announced that its venture lending group, Fifth Street Technology Partners, has closed three new technology investments totaling $55 million so far in the calendar year 2014, $40 million of which was funded at close. Fifth Street Finance Corp. (NASDAQ:FSC) (“FSC”) funded the transactions and received equity warrants for each, increasing the size of Fifth Street’s venture lending portfolio to $79 million.
“With the closing of these deals, we continue to build our brand with the venture capital community, along with a robust pipeline of pending opportunities,” said Michael David, Managing Director and Head of Fifth Street Technology Partners, adding, “We believe this momentum reflects the strong demand we are seeing for our venture debt products, as well as the strength of Fifth Street’s balance sheet and leading origination platform.”
The three recently completed transactions include the following:
• $30 million of second lien debt ($20 million of which was funded at close) to support the growth of Five9, Inc., a provider of cloud-based call center solutions. City National Bank provided a senior credit facility. Five9, Inc.’s current equity investors include Adams Street Partners, SAP Ventures, Partech International and Hummer Winblad Venture Partners.
• $10 million delayed-draw senior secured credit facility ($5 million of which was funded at close) to provide working capital and support the growth of a provider of an online video delivery optimization platform.
• $15 million of second lien debt to refinance and support the growth of ShareThis, Inc., a provider of social sharing solutions and analytics for publishers, advertisers, agencies and consumers. Silicon Valley Bank provided a revolver in conjunction with the transaction. The company’s current equity investors include Draper Fisher Jurvetson, Mercury Fund, Blue Chip Ventures and T-Venture.
About Fifth Street Management LLC
With over $3 billion in assets under management, Fifth Street Management LLC is a leading alternative asset manager and the SEC-registered investment adviser of two publicly-traded business development companies, Fifth Street Finance Corp. (NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR). With a track record of more than 15 years and offices across the country, Fifth Street’s nationally recognized platform was named 2013 “Lender Firm of the Year” by The M&A Advisor and provides custom-tailored financing solutions to small and mid-sized companies, primarily in connection with investments by private equity sponsors. Principally in the form of one-stop financings, first lien, second lien, mezzanine debt and equity co-investments, the Fifth Street platform has the ability to hold loans up to $150 million, commit up to $250 million and structure and syndicate transactions up to $500 million.
This press release may contain certain forward-looking statements, including statements with regard to the future performance of Fifth Street Finance Corp. Words such as “believes,” “expects,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and these factors are identified from time to time in FSC’s filings with the Securities and Exchange Commission. FSC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.