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Activist investors claim Fifth Street Asset Management interfered with Fifth Street Senior shareholder vote

An activist investor group including Ironsides Partners LLC and its affiliates criticized theactions taken by Fifth Street AssetManagement, the parent of FifthStreet Senior Floating Rate Corp.'s external manager, before Fifth StreetSenior's annual meeting.

The investor group, which owns 6.4% of Fifth Street Senior'soutstanding shares, had proposedterminating Fifth Street Senior's investment advisory agreement with , whichis partially and indirectly owned by Fifth Street Asset Management. It previouslysent a letter to the companydisclosing plans to nominate Robert Knapp and Richard Cohen to the company's boardand its intention to propose the termination of the investment advisory agreement.

In an April 7 news release, Ironsides and its affiliates claimedthat Fifth Street Asset Management directed votes as Mangrove Partners agreed to vote about 932,000 shares togetherwith Fifth Street Senior's management as part of an agreement under which Nathaniel August, Mangrove's founderand President, would be appointed to Fifth Street Asset Management's board.

Fifth Street Senior disclosedearlier on April 7 that it believes, based on the preliminary voting results, thatthe proposal to terminate its investment advisory agreement with Fifth Street Managementwas not approved at its annual meeting of stockholders.

Fifth Street Senior and the investor group both stated that thevote on the election of the proposed board nominees was too close to call.

Previously, FifthStreet Finance Corp. entered into an agreement with activist investorRiverNorth Capital Management LLC.Under the terms of the agreement,RiverNorth said it would not contestFifth Street Finance's slate of director nominees at the 2016 annual stockholdermeeting. It also agreed to withdraw its binding proposal to terminate Fifth StreetFinance's investment advisory agreement with Fifth Street Management.