Revenue during the quarter dropped 21.94 percent to $17.89 million from $22.92 million in the previous year period. Operating margin for the quarter stood at negative 17.39 percent as compared to a positive 31.85 percent for the previous year period.

Operating loss for the quarter was $3.11 million, compared with an operating income of $7.30 million in the previous year period.

"During the December quarter, FSAM's results were impacted by volatility in the net asset values of our two business development companies, FSC and FSFR. As we previously stated, we are focused on increasing the return on equity at both BDCs to levels above the median for the industry. We have taken actions at both entities which we hope will stabilize net asset values and drive long-term value for shareholders of FSAM, as well as FSC and FSFR. We look forward to providing further updates on how we are improving the fundamentals of our business," stated Leonard M. Tannenbaum, chief executive officer of FSAM.

Debt increases substantially
Fifth Street Asset Management Inc. has witnessed an increase in total debt over the last one year. It stood at $116.97 million as on Dec. 31, 2016, up 34.90 percent or $30.26 million from $86.71 million on Dec. 31, 2015. Total debt was 65.42 percent of total assets as on Dec. 31, 2016, compared with 57.34 percent on Dec. 31, 2015.