Daily News: March 11, 2014

Fifth Street Technology Closes Three New Investments

Fifth Street Management announced that its venture lending group, Fifth Street Technology Partners, closed three new technology investments totaling $55 million so far in the calendar year 2014, $40 million of which was funded at close. Fifth Street Finance Corp. FSC funded the transactions and received equity warrants for each, increasing the size of Fifth Street’s venture lending portfolio to $79 million.

“With the closing of these deals, we continue to build our brand with the venture capital community, along with a robust pipeline of pending opportunities,” said Michael David, managing director and head of Fifth Street Technology Partners, adding, “We believe this momentum reflects the strong demand we are seeing for our venture debt products, as well as the strength of Fifth Street’s balance sheet and leading origination platform.”

The three recently completed transactions include:

  • $30 million of second lien debt ($20 million of which was funded at close) to support the growth of Five9, a provider of cloud-based call center solutions. City National Bank provided a senior credit facility. Five9’s current equity investors include Adams Street Partners, SAP Ventures, Partech International and Hummer Winblad Venture Partners.
  • $10 million delayed-draw senior secured credit facility ($5 million of which was funded at close) to provide working capital and support the growth of a provider of an online video delivery optimization platform.
  • $15 million of second lien debt to refinance and support the growth of ShareThis, a provider of social sharing solutions and analytics for publishers, advertisers, agencies and consumers. Silicon Valley Bank provided a revolver in conjunction with the transaction. The company’s current equity investors include Draper Fisher Jurvetson, Mercury Fund, Blue Chip Ventures and T-Venture.