Updated: Aug 17, 2017 @ 12:47 pm

Fifth Street Finance (FSC) is an externally-managed BDC managed by Fifth Street Asset Management (FSAM). Fifth Street Asset Management’s primary clients are its two BDCs, FSC and Fifth Street Floating Rate (FSFR).

Meet the external manager

Employees: 87
Investment advisory employees: 38
Clients: BDCs, pooled investment vehicles, and seperately managed accounts.
Assets under management: $4.6 billion (a majority is in FSC and FSFR, its BDCs)
AUM per investment employee: $121 million

Source: FORM ADV filing.

Fifth Street Finance’s Board of Directors

Bernard D. BermanDirector and Chairman20092018
Ivelin M. DimitrovDirector, President and Chief Investment Officer20132017
Sandeep K. KhoranaDirector and Managing Director, Head of Sponsor Coverage20152018
Todd G. OwensDirector and Chief Executive Officer20142019
James Castro-BlancoDirector20142018
Brian S. DunnDirector20072017
Richard P. DutkiewiczDirector20102019
Byron J. HaneyDirector20072017
Douglas F. RayDirector20072019

Source: 2016 proxy filing and company IR site.

Potential conflicts and concerns

  1. Fifth Street Finance has previously fought off outside activists with greenmail.
  2. The company reached a settlement on a class-action shareholder suit, and agreed to make improvements to its Board of Directors.
  3. FSC’s staggered Board of Directors elections make outside influence difficult, if impossible.
  4. The external manager diluted investors of another one of its managed funds, Fifth Street Floating Rate, in order to inflate its AUM prior to the public listing of its external manager, Fifth Street Asset Management (FSAM).

C-Level Management summary

Chief Executive Officer: Todd G. Owens
Chief Investment Officer: Ivelin M. Dimitrov
Chief Financial Officer: Steven M. Noreika
PCM Chief Compliance Officer: Kerry S. Acocella