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Ways to Invest

There are several ways to invest in Fifth Street, depending on your risk tolerance and desired reward potential

Fifth Street Finance Corp. Baby Bonds (NASDAQ:FSCFL and NYSE:FSCE):

Issued by FSC, these low-par value bonds still provide exposure to FSC's portfolio of private, growing companies. However, they are designed for investors with a lower tolerance for volatility—or who desire greater assurance of principal protection.

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Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR):

Over 90% of FSFR’s portfolio is invested in senior secured loans — loans that are usually secured with a lien against the borrower's assets and take priority over junior debt. By offering nearly 100% floating rate loan exposure, FSFR is ideally suited for investors who are seeking to benefit in a rising interest rate environment.

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about FSFR and FSC

Fifth Street Finance Corp. (NASDAQ:FSC):

While the majority of its investment portfolio is in senior secured loans (typically the safest loan category), FSC may also invest in junior debt and in some cases, equity. FSC aims to take advantage of floating rates, though not to the same extent as FSFR. Investors who are looking for higher yield potential and are comfortable assuming modestly higher risk than an investment in FSFR may prefer FSC.

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about FSFR and FSC


Note: This graph is for illustrative purposes only; risks and rewards for each investment option change from time to time and do not take into account current trading activity. Positioning along the spectrum reflects what we believe to be potential, not actual, risks and rewards. These assumptions are based on the annual dividend to trading price as of 3/7/17 for the BDCs (FSC and FSFR) and annual interest for the baby bonds (FSCE and FSCFL).

An Important Word About Risk

Business Development Companies ("BDCs") invest in private companies and thinly traded securities of public companies, including debt instruments of such companies. Generally, less public information exists for private and thinly traded companies and thus, there is a risk that investors may not be able to make fully informed investment decisions. Less mature and smaller private companies generally involve greater risk than well-established and larger publicly-traded companies. Investing in debt involves risk that the issuer may default on its payments or declare bankruptcy, and debt may not be rated by a credit rating agency. BDCs may not generate income at all times. Additionally, limitations on asset mix and leverage may prohibit the way that BDCs raise capital.

Investing involves substantial risks such as high volatility and/or potential loss of principal. An investor should consider the investment objectives, risks, charges and expenses carefully before investing.

This site may contain certain forward-looking statements, including statements with regard to the future performance of Fifth Street Asset Management Inc. ("FSAM"), Fifth Street Finance Corp. ("FSC") and/or Fifth Street Senior Floating Rate Corp. ("FSFR"). Words such as "believes," "expects," "projects," "anticipates," "estimates," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and such factors are identified from time to time in FSAM's, FSC's and FSFR's filings with the Securities and Exchange Commission. Neither FSAM, FSC nor FSFR undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This site is neither an offer to sell nor a solicitation of an offer to purchase securities of FSAM, FSC and/or FSFR. Such an offer or solicitation can only be made by way of an applicable company prospectus and otherwise in accordance with applicable securities laws.

The summary descriptions and other information included herein and any other materials provided to you by FSAM, FSC, FSFR or their representatives are intended only for informational purposes and convenient reference. The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. Before making an investment decision with respect to the applicable company, investors are advised to carefully review an applicable prospectus to review the risk factors described therein, and to consult with their tax, financial, investment and legal advisors. These materials do not purport to be complete, and are qualified in their entirety by reference to the more detailed disclosures contained in an applicable prospectus and the applicable company's related documentation.

No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained herein, and nothing shall be relied upon as a promise or representation as to the future performance of FSAM, FSC or FSFR.