Medley Capital Reports Joint Venture

Medley Capital Corporation ("MCC", or the "Company")

today announced that it has formed a joint venture with a premier U.S. provider of property and casualty insurance ("JV Partner"), creating MCC Senior Loan Strategy JV I LLC ("MCC SLS JV"). The joint venture is expected to invest primarily in middle market and other corporate debt securities, a natural extension of MCC's leading origination and underwriting franchise. MCC and the JV Partner have committed to provide an aggregate of $100 million of equity to the joint venture, with MCC providing $87.5 million and the JV Partner providing $12.5 million. In addition, MCC SLS JV is in discussions with third party financing providers to provide the joint venture with a credit facility. MCC and the JV Partner anticipate beginning to fun the joint venture with new investments in May 2015. "We are pleased to build this strategic partnership with a leader in the U.S. insurance industry with deep expertise in credit investing," said Brook Taube, MCC's Chief Executive Officer and Chairman of the Board of Directors. "We expect that this joint venture will be additive to MCC's return on equity as well as net investment income per share."