Fifth Street Finance Corp. (Fifth Street) is a specialty finance company that lends to, and invests in small and mid-sized companies (with annual revenues between $25 million and $250 million) in connection with investments by private equity sponsors. It provides financing to support the acquisitions or recapitalizations of companies by private equity sponsors. The Company is externally managed and advised by Fifth Street Management LLC. Its 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. As of September 30, 2008, the Company’s portfolio totaled $279 million at fair value and was comprised of investments in 24 portfolio companies. Fifth Street Mezzanine Partners III, L.P., the Company’s predecessor fund, commenced operations as a private partnership on February 15, 2007.