Daily News: March 20, 2014

Fifth Street, GF Funding Announce Partnership

Fifth Street Senior Floating Rate announced that it and GF Funding 2014, an entity controlled by the Glick family, signed a letter of intent to form a strategic partnership to co-invest primarily in senior secured loans of middle market companies. The Glick family office manages a wide array of asset classes.

Among its better known investments is a greater than 25% stake in Songbird Estates, the holding company for Canary Wharf Group Plc, a business office district in London. The Glick family was an initial investor in FSFR’s IPO in July 2013 and owns almost 2% of the outstanding shares.

The new venture is expected to be structured as a limited liability company owned by FSFR and GF Funding 2014 with each party appointing two members to the company’s board. It is expected to be jointly capitalized with a structure similar to that of other senior loan funds in the Business Development Company sector.

“The Fifth Street platform has an over 10-year relationship with the Glick family. We are pleased to have them as an investor in FSFR, and now as a partner in this new venture, which should allow for accelerated growth and significant earnings accretion for FSFR,” stated CEO Leonard M. Tannenbaum.

Sam Levinson, managing partner of the Glick family office, added “We have invested with Len and the Fifth Street platform several times over our long-standing relationship. Through our new venture with FSFR, we expect to gain further access to their leading middle market loan origination and credit risk management platform to increase our exposure in this attractive asset class.”