Fifth Street Asset Management announced that it has signed a definitive asset purchase agreement with Oaktree Capital Management, L.P. (Oaktree), under which Oaktree will become the new investment adviser to two Business Development Companies (BDC): Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR).

The transaction is expected to be completed in the fourth quarter of 2017. At the closing of the transaction, all current FSC board members except Richard P. Dutkiewicz, and all current FSFR board members except Richard W. Cohen, will resign. Each BDC board has nominated Marc H. Gamsin, Craig Jacobson, Richard G. Ruben and Bruce Zimmerman as new independent directors and John Frank, Vice Chairman of Oaktree, as a new interested director of the board, each of whom would take office upon approval of the stockholders and closing of the transaction.

Mr. Frank is expected to serve as chairman of each BDC board. The executive officers of FSC and FSFR will resign and will be replaced with certain individuals affiliated with Oaktree at the closing of the transaction.