Fifth Street Finance Corporation was formed on February 15, 2007 in Delaware. The Company is a specialty finance company that is a closed-end, externally managed, non-diversified management investment company. The Company lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. Its investment objective is to maximize its portfolio's total return by generating income from its debt investments and capital appreciation from its equity investments. It also seeks to invest in companies that have proper incentives in place, including having equity interests, to motivate management to act in accordance with its interests. It makes its investment decisions only after consideration of a number of factors regarding the potential investment including, but not limited to; historical and projected financial performance; company and industry specific characteristics, such as strengths, weaknesses, opportunities and threats; composition and experience of the management team; and track record of the private equity sponsor of the transaction.
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