WHITE PLAINS, N.Y., June 12, 2009 (GLOBE NEWSWIRE) -- Fifth Street Capital launched today its Fifth Street Small Business Index, which is intended to provide insight into the performance trends of small companies throughout the U.S. The Index is earnings-based and reflects the performance of an equally weighted basket of portfolio companies of Fifth Street Capital LLC and its affiliates. The Index will be updated monthly and is calculated by S&P Custom Indices.
"The underlying goal of creating this Index is to provide timely, useful insight into what has historically been a very private but important sector of the economy. Although the Index is based on a selected portfolio of small companies, changes in the Index should generally reflect fluctuations in small company performance overall," said Leonard Tannenbaum, the managing member of Fifth Street Capital LLC and the CEO and President of Fifth Street Finance Corp.
The Fifth Street Small Business Index tracks monthly changes in the trailing twelve-month EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of an equally weighted basket of qualifying companies. To qualify for inclusion in the Index, a company must be in the investment portfolio of Fifth Street Capital or its affiliates for at least thirteen months. The Index was developed with a base level of 1,000 as of January 2008 and its value will be published on the first of every month. As of March 31, 2009, the Index is composed of 30 companies representing 17 industries with operations in 34 different states.
For more information on the Fifth Street Index, please visit http://www.fifthstreetfinance.com/indexchart.html.
About Fifth Street Capital LLC
Fifth Street Capital LLC is a private investment firm founded and managed by Leonard Tannenbaum, who has led the investment of over $450 million in small and mid-sized companies since 1998. Mr. Tannenbaum and his respective private investment firms have acted as the lead (and often sole) first or second lien investor in over 50 investment transactions. The other investment funds managed by these private investment firms generally are fully committed and, other than follow-on investments in existing portfolio companies, are no longer making investments.
About Fifth Street Finance Corp.
Fifth Street Finance Corp. (NYSE:FSC) is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. Fifth Street Finance Corp.'s investment objective is to maximize its portfolio's total return by generating current income from its debt investments and capital appreciation from its equity investments.
The Fifth Street Finance Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5525
Important Information Regarding the Fifth Street Small Business Index
The Fifth Street Small Business Index is not sponsored, endorsed, sold or promoted by Standard & Poor's Financial Services LLC ("S&P") or its third party licensors. Neither S&P nor its third party licensors make any representation or warranty, express or implied, to the owners of the Fifth Street Small Business Index or any member of the public regarding any aspect of the Fifth Street Small Business Index, including its ability to provide insight into the performance trends of privately held companies throughout the U.S. S&P's and its third party licensor's only relationship to Fifth Street Capital is the licensing of certain trademarks, service marks and trade names of S&P and/or its third party licensors and for the providing of calculation and maintenance services related to the Fifth Street Small Business Index. S&P has no obligation or liability in connection with the Fifth Street Small Business Index. In addition, because the Index is composed of portfolio company investments made by entities other than Fifth Street Finance Corp., it should not be considered, nor is it intended to be, an indicator of the financial performance of the portfolio company investments held by Fifth Street Finance Corp. or of Fifth Street Finance Corp. Instead, the Index is intended to provide a barometer of the performance trends of privately held small businesses throughout the U.S.