Todd Owens:
Thank you Ben, Fifth Street is one of a handful of leading market sponsored focus origination platforms that has been built over the past 16 years by investments in technologies infrastructure and employees. The size and scale of Fifth street provide us with significant competitive advantages including the ability to source, underwrite and manage almost all transactions in our portfolio as well as the ability to leverage our core focus and credit to develop complimentary product lines. We have a team of almost a hundred professionals located in Brinage, Chicago, Palo Alto and Dallas.
As one of the leading middle market lenders we see a tremendous amount of deal flow and we selectively invest in opportunity with favorable risk adjusted returns. During the September quarter, we received an exemptive order from the SCC to invest across multiple funds within the Fifth street platform. We can now hold up to 250 million dollars per transaction across the platform which is a key differentiating factor in the middle market. The sharing of deal flow should allow Fifth street to deploy capital effectively and efficiently while enhancing portfolio diversification and optimizing individual investment sizes within each of our vehicles. Our 2 BDCs provide a source of permanent capital accounting for over 90 % of our revenue and generated a consistent and predictable income stream for FSAM. Over the course of the fall stock prices of our BDCs declined and did many of their peers and trade well below book value.
As we have previously stated we do not intend to issue acuity at either BDC below book value. As a consequence we have not been able to raise equity capital of the 4th quarter in our ability to raise additional equity capital a future is dependent upon meaningful increases in our BDC stock prices.
Despite current trading values we remain very excited about the market opportunities for both of our BDCs, we are particularly enthusiastic about FSFR or Senior Floating Rate Vehicle because we are seeing very attractive opportunities in the senior secured market. Furthermore with a low 1% management fee we believe that these structures, once of the lowest in the industry become which are very attractive to investors. Finally, our portfolios are a 100% invested in floating rate loans which position the vehicle for any rise in interest rates. For both of our BDCs we believe there’s capacity to grow by utilizing the 30% non-qualifying asset basket to form joined ventures with long standing partners. Each of our BDCs have one JD which provide multiple benefits, the JD has expand each respective BDC investment capacity to originate and underwrite middle market loans and provide an efficient way to finance assets that enhance returns for our shareholders.
Senior loan fund JD 1 FSCs joint venture a subsidiary of term per corporation was closed in May of 2014. As of September 30 of 2014 the JD had a 186 million dollars of assets including investments in a range of one-stop in senior secured loans to 18 portfolio companies.
In November we announced the formation of FSFR, Glick, JV, LLC, a joint venture with an entity controlled by members of the Glick family. We expect to start allocating assets to the joint venture from FSFR balance sheet in the near term. We have ample capacities about these and other similar joint ventures. Ramping the joint venture at each BDC and forming other similar potential JVs represent an important driver of our future earnings both at FSC and FSFR. I would now like to turn the call over to Alex Frank our CFO to discuss the financial in more detail.
