Fifth Street Finance: Insider Ownership Updated
- Fifth Street Finance (FSC) published a new presentation about the BDC.
- The presentation confirms insiders now own 15% of the Company, including shares owned by Leonard Tannenbaum.
- Tannenbaum is the CEO of the parent of FSC’s External Manager, Fifth Street Asset Management (FSAM).
- Presentation says 22mn shares owned by insiders demonstrates “shareholder alignment”.
- Not mentioned: many of shares purchased recently to retain control in (successful) Proxy fight against some shareholders.
- Last major purchase by Tannenbaum back on August 12th, as per BDC Activist Alert.
- BDC Activist says:” Whatever the reason for the insider purchases, we’d rather see the External Manager, directors and officers be invested in the stock than not”.
- Adds: “However, economics are not fully “aligned” given that key insiders like Tannenbaum still gain most of their economic return from FSC’s management fees.”