Fifth Street Finance Corp. announced a follow-on transaction in support of Riverside Partners’ portfolio company, Welocalize, Inc.

The $40.5 million expansion of the credit facility and commitment, which helped fund Welocalize’s combination with Park Translations LLC and supports future business expansion, demonstrates Fifth Street’s affinity for facilitating long term company growth. Fifth Street had previously provided a $43.4 million investment in a one-stop facility to support Riverside Partners’ initial acquisition of Welocalize in November 2010.

While Fifth Street served as the administrative agent and lead arranger on the deal, the firm also brought in two syndication partners as part of the transaction. Previously the sole lender in Welocalize’s one-stop senior credit facility, Fifth Street was awarded these titles in the follow-on transaction based on the firm’s performance as the incumbent lender.

“This transaction reflects the conscious path that Fifth Street has pursued over the past year. We have deliberately set out to participate in larger deals in order to take our well-earned reputation as a flexible, long-term lending partner to the next level,” said Leonard Tannenbaum, Fifth Street’s chief executive officer.

“From the outset, we regarded Welocalize as one of the best positioned players in the localization services marketplace and looked forward to assisting the company in its next phase of growth,” said David Belluck, a general partner at Riverside Partners. “In Fifth Street, we knew we had a reliable financing partner who shared our vision and had the wherewithal to help us execute a strategic, multi-year expansion plan.”

Welocalize, founded in 1997 and headquartered in Frederick, MD, is a technology-enabled translation provider to large multinational corporations. Park Translations, founded in 2005 and based in New York, NY, is a legal translation provider specifically focused on patent translations.

Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors.