Fifth Street Asset Management Inc. Announces Reduction in Base Management Fee at Fifth Street Finance Corp.
January 20 2016 - 4:30PM
Fifth Street Asset Management Inc. (NASDAQ:FSAM) (“FSAM”) today
announced that on January 19, 2016, Fifth Street Management LLC
(“FSM”), a subsidiary of FSAM and the investment adviser to Fifth
Street Finance Corp. (NASDAQ:FSC) (“FSC”), recommended and, with
the approval of the FSC Board of Directors, agreed to an amendment
to the investment management agreement to permanently reduce base
management fees. Effective as of January 1, 2016, the base
management fee on FSC’s total gross assets (excluding cash and cash
equivalents) has been reduced from 2.00% to 1.75%.
“In light of the changing market environment and continued
pressure on fee structures, as the investment adviser to FSC, we
and the FSC Board of Directors made a decision to permanently
reduce the base management fees in line with FSC’s peers. We
believe that the permanent reduction in base management fees at FSC
is a prudent move, should increase FSC’s return on equity and
benefit all FSC stockholders,” said Leonard M. Tannenbaum, Chairman
and Chief Executive Officer of FSAM.
As previously announced in July 2015, the waiver reducing the
base management fee on new equity issuances to 1.00% remains in
place.
About Fifth Street Asset Management Inc.
Fifth Street Asset Management Inc. (NASDAQ:FSAM) is a nationally
recognized credit-focused asset manager. The firm has over $5
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 over a 17-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 are supported by approximately 80
professionals across locations in Greenwich, Chicago and San
Francisco. For more information, please visit
fsam.fifthstreetfinance.com
Forward-Looking Statements
This press release may contain, and certain oral statements made
by our representatives from time to time may contain,
forward-looking statements, because they relate to future events or
our future performance or financial condition. Forward-looking
statements may include statements as to the fees charged by FSAM to
FSC and FSFR, FSAM’s future operating results, dividends by FSAM
and business prospects of FSAM. Words such as “believes,”
“expects,” “seeks,” “plans,” “should,” “estimates,” “project,” and
“intend” indicate forward-looking statements, although not all
forward-looking statements include these words. These
forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those implied or expressed in
these forward-looking statements for any reason. Such factors
are identified from time to time in FSAM’s filings with the
Securities and Exchange Commission and include changes in the
economy, the financial markets and future changes in laws or
regulations, competitive conditions in the business development
company space and conditions in FSAM’s operating areas. FSAM
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
CONTACT:
Investor Contact:
Robyn Friedman, Senior Vice President, Head of Investor Relations
(203) 681-3720
ir-fsam@fifthstreetfinance.com
Media Contact:
Tom Becker
Sitrick And Company
(212) 573-6100
Tom_Becker@sitrick.com
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