Fifth Street Finance Corp. announced that its portfolio company, HFG Holdings, LLC ("Healthcare Finance Group" or "HFG"), a specialty lender providing asset-backed lending and term loan products to various segments of the healthcare industry, has been sold to MidCap Financial. FSC acquired HFG in June of 2013 and, together with management, expanded the company's suite of products and capabilities, positioning it for future growth.

"Over the course of our strategic review, we decided that it was important to refocus FSC on our core lending businesses, particularly middle market sponsor-backed lending as well as technology lending and aircraft leasing," stated Todd G. Owens, Chief Executive Officer, adding, "We see a tremendous opportunity in the middle market and believe that FSC's capital can be used to generate higher risk-adjusted returns in our core lending businesses by capitalizing on the strength of our brand name and the relationships we have built with our private equity clients over many years."

Fifth Street Finance Corp. is a leading specialty finance company that provides custom-tailored financing solutions to small and mid-sized companies, primarily in connection with investments by private equity sponsors.