This week we speak with Richard Petrocelli, CFO of FSC and FSFR, and Frederick Buffone, Head of Capital Markets, FSAM. Fifth Street Asset Management (FSAM) is a credit-focused asset manager with $6 billion of AUM across two public BDCs, Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), as well as multiple private investment vehicles.
The Lead Left: Rich, you’ve had success growing both your unitranche [FSC] and first lien [FSFR] businesses. How big are they today?
Rich Petrocelli: FSFR has $375 million of assets and mostly makes first lien investments. FSC is our unitranche business with an average yield of 10.7%. It has approximately $2.6 billion in assets and a $1.5 billion net asset value.
TLL: And you’ve been busy adding lending capacity. Where does that stand today?
RP: We have two publicly-traded BDCs, but our joint ventures are the big story. One of the benefits of our scale is the ability to create these vehicles with our equity and lending partners. FSC has a JV with Kemper and we’ve invested