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Fifth Street Finance Corp sells Healthcare Finance Group to MidCap Financial

Fifth Street Finance Corp (FSC) has sold its portfolio company, HFG Holdings, a specialty lender providing asset-backed lending and term loan products to various segments of the healthcare industry, 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," says 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 capitalising on the strength of our brand name and the relationships we have built with our private equity clients over many years."

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