Update: The story was updated to report that one person from Fifth Street’s LA office was laid off, not two.
When we wrote about the storm of layoffs at mid-market lending houses last month, we had covered just about all of the main players. We forgot one, though.
Fifth Street Capital laid off a “small handful” of its staff in late February, the firm confirmed. The spokesperson attributed the layoffs to a “lack of deals and the current environment,” adding that the firm had hired analysts related to its IPO last year. The headcount reduction was four, leaving the New York-based BDC with an 18-person staff, according to its website. The spokesperson maintained that the firm continues to do origination out of its LA office, despite rumblings that that office, which saw one of its three employees cut, would close.
So let’s sum up the first quarter lender layoffs we’ve seen:
Churchill Financial cut one third of its employees.
Freeport Financial laid off most of its 23 employees.
Bank of Ireland laid off 10% of its staff, leaving it with 30 employees.
Orix Corporation shut down its Chicago office and consolidated much of its New York middle market leveraged lending staff in Dallas
NewStar Financial laid off a handful of originators who were working from their home offices in Chicago, South Carolina and San Diego.
National City laid off both originators and portfolio managers in Cleveland.
Madison Capital laid off 10% of its staff, or 7 employees.
Dymas Capital laid off ten staffers, leaving seven employees remaining.
And of course, heads rolled at GE Capital.
So who does that leave? Was any lender immune?