KCAP Financial, Inc. has commenced a public offering of 4 million shares of its common stock. KCAP intends to use the net proceeds of this public offering for general corporate purposes, which includes investing in portfolio companies and collateralized loan obligation funds in accordance with its investment objective and strategies.

Barclays Capital Inc. and Stifel, Nicolaus & Company, Incorporated are acting as joint book-running managers of this offering. JMP Securities LLC and Janney Montgomery Scott LLC and are acting as co-lead managers and Ladenburg Thalmann & Co. Inc. and Wunderlich Securities, Inc. are acting as co-managers for this offering. The offering is expected to close on February 8, 2013, subject to customary closing conditions. The company has granted the underwriters an option to purchase up to an additional 570,000 shares of its common stock.

Earlier this year, KCAP Financial announced that Jeff Knopping joined the firm as a managing director to lead the firm's origination activities as KCAP Financial continues to expand its platform.