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As expected, Fifth Street Finance (FSC) offered up a lower fee on new equity raised in future. We are underwhelmed and discuss the bigger picture of the mismatch of the BDC sector's misaligned incentives, and the long term impact on the industry. Unfortunately, greed is likely to win out in short term as the foxes run the hen house....

Phil Falcone's HCH Holdings (HCHC) has sweetened its revised $5.30 a share offer for MCG Capital (MCGC). We review and evaluate the economics of the sweeteners, and speculate on how this struggle for cash-heavy MCGC will turn out. We discuss the upside and the downside of investing in MCGC at this late date.