Fifth Street Technology Partners, the venture lending group of Fifth Street Management LLC, has closed three venture debt transactions for $55 million.
The debt was funded by Fifth Street Finance Corp. (Nasdaq: FSC) and increases Fifth Street's venture loan portfolio to $79 million. Fifth Street Management, headquartered in Greenwich, Conn., is an alternative asset manager with about $3 billion in assets under management.
The loans included $30 million in second lien debt for Five9 Inc., which provides cloud-based call center services. City National Bank provided the senior credit facility. The company's venture capital investors include eAdams Street partners, SAP Ventures, Partech International and Hummer Winblad Venture Partners.
An unnamed company that provides an online video service received a $10 million delayed=draw senior secured credit facility to provide working capital, and social sharing service ShareThis Inc. received $15 million in second lien debt to refinance. Silicon Valley Bank provided a revolver in conjunction with the ShareThis deal. Investors in the company include Draper Fisher Jurveston, Mercury Fund, Blue Chip Ventures and T-Venture.
"Venture debt is becoming increasingly attractive as traditional lenders retreat from smaller companies, and heightened scrutiny makes it unpalatable to raise another round of venture capital funding at lower valuations," chief information officer Ivelin Dimitrov. said in an interview in September, when Fifth Street entered the venture lending business. Fifth Street Technology is led by Michael David as CEO (pictured).