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Fifth Street Finance Corp. (FSC)
UBS Global Financial Services Conference Call
May 9, 2012 2:20 am ET
Leonard M. Tannenbaum – Chairman and Chief Executive Officer
Alexander C. Frank – Chief Financial Officer
Abu Ramin – UBS Securities LLC
PresentationAbu Ramin – UBS Securities LLC
Good afternoon, everybody. Thank you for coming to our conference. My name is Abu Ramin, and I’m the Consumer and Specialty Finance team at UBS. I have the pleasure of introducing Fifth Street Finance Corp. Fifth Street Finance Corp. has been one of the fastest growing BDCs nearly doubling its investment portfolio in its fiscal 2011 year.
Here to present of behalf of Fifth Street is Len Tannenbaum, Chief Executive Officer and Chairman of the Board of Directors joined by Alex Frank, CFO.
Leonard M. Tannenbaum
Thank you, very much. I think – let me see if I can use those slides, roughly maybe that’s simple. Disclaimers, what a BDC is? For those of you who don’t know; quickly, a BDC is a vehicle where you can do passthrough without double taxation. And we can take 1:1 one leverage. We were created in 1980, allowing Small Business Act to invest in small businesses, and we are heavily regulated by the SEC. So we’re registered investment advisor.
I founded the firm in 1998, it’s just me, and we built the firm based upon a phenomenal track record. We had 30% compounded returns in the first fund, 20% compounded returns to the second fund. The first fund was to seven years before full realization, which allowed us to raise a third fund in 2007, eventually converting to the BDC going public in June of 2008.