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Fifth Street Asset Management pulls IPO, cites choppy markets — Reuters

(Reuters) – Alternative asset manager Fifth Street Asset Management Inc withdrew its plan to go public, citing volatility for new issuers in equity markets.

Fifth Street Asset Management filed with the U.S. Securities and Exchange Commission last month for an IPO that was expected to raise up to $208 million.

The offering of 8 million Class A common stock was expected to be priced in a range of $24-$26, valuing the company at about $1.27 billion at the top end. (bit.ly/1otpt4G)

“While we received demand from potential investors, market conditions are not optimal for an IPO at this time,” Chief Executive Leonard Tannenbaum said in a statement on Wednesday.

About 95 percent of Fifth Street Asset Management’s managed assets are in publicly traded business development companies (BDCs) Fifth Street Finance Corp and Fifth Street Senior Floating Rate Corp.

They accounted for about 99 percent of the company’s revenue for the year ended December.

Shares of Ares Management LP, the alternative asset manager that went public in May, closed on Tuesday about 12 percent below their IPO price of $19.

Ares Management runs Ares Capital Corp and was the first U.S. private equity firm to go public in about two years.
Morgan Stanley, J.P. Morgan and Goldman Sachs were among the lead underwriters for Fifth Street’s IPO.