<SEC-DOCUMENT>0001213900-19-009910.txt : 20190603
<SEC-HEADER>0001213900-19-009910.hdr.sgml : 20190603
<ACCEPTANCE-DATETIME>20190603060254
ACCESSION NUMBER:		0001213900-19-009910
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190603
DATE AS OF CHANGE:		20190603
EFFECTIVENESS DATE:		20190603

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Medley Capital Corp
		CENTRAL INDEX KEY:			0001490349
		IRS NUMBER:				274576073
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00818
		FILM NUMBER:		19872032

	BUSINESS ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		212-759-0777

	MAIL ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		6TH FLOOR EAST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Medley Capital BDC LLC
		DATE OF NAME CHANGE:	20100426
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>defa14a060319b_medleycapital.htm
<DESCRIPTION>DEFINITIVE ADDITIONAL MATERIALS
<TEXT>
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<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Proxy Statement Pursuant to Section 14(a)
of the Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant &#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by a Party other than the Registrant &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 0.25in; padding: 0; font-size: 10pt; text-align: justify">&#9744;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>

<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-align: justify">&#9744;</TD>
    <TD STYLE="padding: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-align: justify">&#9744;</TD>
    <TD STYLE="padding: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-align: justify">&#9746;</TD>
    <TD STYLE="padding: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-align: justify">&#9744;</TD>
    <TD STYLE="padding: 0; text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting Material Pursuant to &sect;240.14a-12</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>MEDLEY CAPITAL CORPORATION</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>(Name of Registrant as Specified In Its Charter)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding: 0; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Payment of Filing Fee (Check the appropriate
box):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt">&#9746;&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">No fee required</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt">&#9744;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; width: 0.25in; vertical-align: top"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Title of each class of securities to which transaction applies:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Aggregate number of securities to which transaction applies:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0; font-size: 10pt"><FONT STYLE="font-size: 10pt">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Proposed maximum aggregate value of transaction:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Total fee paid:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt">&#9744;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Fee paid previously with preliminary materials</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt">&#9744;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Amount Previously Paid:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Form, Schedule or Registration Statement No.:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Filing Party:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">Date Filed:</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MEDLEY CAPITAL CORPORATION URGES SHAREHOLDERS
TO VOTE THE <U>WHITE</U> PROXY CARD TODAY<BR>
&ldquo;FOR&rdquo; HIGHLY QUALIFIED DIRECTORS ARTHUR AINSBERG AND SETH TAUBE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ELECTION OF NEXPOINT&rsquo;S NOMINEES
IS NEITHER WARRANTED NOR </B><BR>
<B>IN SHAREHOLDERS&rsquo; BEST INTERESTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NEW YORK</B> &ndash; <B>June 1, 2019</B> - Medley Capital
Corporation (NYSE: MCC, &ldquo;MCC&rdquo; or the &ldquo;Company&rdquo;) (TASE: MCC) today urged MCC shareholders to vote on the
WHITE proxy card &ldquo;FOR&rdquo; its highly qualified directors Arthur Ainsberg and Seth Taube in connection with the election
of directors to MCC&rsquo;s Board of Directors at the Company&rsquo;s 2019 Annual Meeting of Shareholders on June 4, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Messrs. Ainsberg and Taube bring deep institutional knowledge
of the BDC space, financial services sector and credit markets, and have the required expertise and skill sets to drive long-term
shareholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ELECTION OF NEXPOINT&rsquo;S NOMINEES
IS NEITHER WARRANTED NOR </B><BR>
<B>IN SHAREHOLDERS&rsquo; BEST INTERESTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>NexPoint is highly conflicted: it has proposed to assume control of MCC&rsquo;s external management contract and capture value
that rightfully belongs to MCC and its shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>NexPoint and its affiliates have a concerning track record, which we believe would pose significant and unnecessary risks to
MCC shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>We believe NexPoint&rsquo;s nominees could prove disruptive to the pending Go-Shop sales process contemplated by the Settlement
Term Sheet.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 101.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ABOUT MEDLEY CAPITAL CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Medley Capital Corporation is a closed-end, externally managed
business development company (&ldquo;BDC&rdquo;) that trades on the New York Stock Exchange (NYSE: MCC) and the Tel Aviv Stock Exchange
(TASE:MCC). Medley Capital Corporation&rsquo;s investment objective is to generate current income and capital appreciation by lending
to privately-held middle market companies, primarily through directly originated transactions, to help these companies expand their
businesses, refinance and make acquisitions. Medley Capital Corporation&rsquo;s portfolio generally consists of senior secured first
lien loans and senior secured second lien loans. Medley Capital Corporation is externally managed by MCC Advisors LLC, which is
an investment adviser registered under the Investment Advisers Act of 1940, as amended. For additional information, please visit
Medley Capital Corporation at www.medleycapitalcorp.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ABOUT&nbsp;MCC ADVISORS LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">MCC Advisors LLC&nbsp;is a subsidiary of&nbsp;Medley Management
Inc.&nbsp;(NYSE: MDLY, &ldquo;Medley&rdquo;). Medley is an alternative asset management firm offering yield solutions to retail
and institutional investors. Medley&rsquo;s national direct origination franchise is a premier provider of capital to the middle
market in the U.S. Medley has&nbsp;$4.7 billion&nbsp;of assets under management in two business development companies,&nbsp;Medley
Capital Corporation&nbsp;(NYSE: MCC) (TASE: MCC) and&nbsp;Sierra Income Corporation, a credit interval fund,&nbsp;Sierra Total
Return Fund&nbsp;(NASDAQ:SRNTX) and several private investment vehicles. Over the past 17 years, we have provided capital to over
400 companies across 35 industries in&nbsp;North America.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT>&nbsp;For
additional information, please visit&nbsp;Medley Management Inc.&nbsp;at&nbsp;www.mdly.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>1</SUP></FONT>
Medley Management Inc. is the parent company of&nbsp;Medley LLC&nbsp;and several registered investment advisors (collectively,
&ldquo;Medley&rdquo;). Assets under management refers to assets of Medley&rsquo;s funds, which represents the sum of the net asset
value of such funds, the drawn and undrawn debt (at the fund level, including amounts subject to restrictions) and uncalled committed
capital (including commitments to funds that have yet to commence their investment periods). Assets under management are as of&nbsp;March
31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Medley LLC, the operating company of&nbsp;Medley Management
Inc., has outstanding bonds which trade on the&nbsp;New York Stock Exchange&nbsp;under the symbols (NYSE:MDLX) and (NYSE:MDLQ).&nbsp;Medley
Capital Corporation&nbsp;is dual-listed on the&nbsp;New York Stock Exchange&nbsp;(NYSE:MCC) and the&nbsp;Tel Aviv Stock Exchange&nbsp;(TASE:
MCC) and has outstanding bonds which trade on both the&nbsp;New York Stock Exchange under the symbols (NYSE:MCV), (NYSE:MCX) and
the&nbsp;Tel Aviv Stock Exchange&nbsp;under the symbol (TASE: MCC.B1).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NO OFFER OR SOLICITATION&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information in this communication is for informational purposes
only and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any
securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transactions
or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable
law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>IMPORTANT INFORMATION AND WHERE TO FIND IT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the proposed transactions, Sierra has filed
with the&nbsp;Securities and Exchange Commission&nbsp;(the &ldquo;SEC&rdquo;) a Registration Statement on Form N-14 that includes
a joint proxy statement of Sierra, the Company, and MDLY and, with respect to Sierra, constitutes a prospectus (collectively, the
&ldquo;Joint Proxy Statement/Prospectus&rdquo;). The Joint Proxy Statement/Prospectus, as applicable, was first mailed or otherwise
delivered to stockholders of Sierra, the Company, and MDLY on or about&nbsp;December 21, 2018. INVESTORS AND SECURITY HOLDERS ARE
URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND
IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT SIERRA, THE COMPANY, AND MDLY, THE PROPOSED TRANSACTIONS AND
RELATED MATTERS. Investors and security holders can obtain the Joint Proxy Statement/Prospectus and other documents filed with
the&nbsp;SEC&nbsp;by Sierra, the Company, and MDLY, free of charge, from the SEC&rsquo;s web site at&nbsp;www.sec.gov&nbsp;and
from Sierra&rsquo;s website (www.sierraincomecorp.com), the Company&rsquo;s website (www.medleycapitalcorp.com), or MDLY&rsquo;s
website (www.mdly.com). Investors and security holders may also obtain free copies of the Joint Proxy Statement/Prospectus and
other documents filed with the&nbsp;SEC&nbsp;from Sierra, the Company, or MDLY by contacting&nbsp;Sam Anderson, Medley&rsquo;s
Investor Relations contact, at 212-759-0777.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PARTICIPANTS IN THE SOLICITATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sierra, the Company, and MDLY and their respective directors,
executive officers, other members of their management, employees and other persons may be deemed to be participants in the solicitation
of proxies in connection with the proposed transactions. Information regarding the persons who may, under the rules of the&nbsp;SEC,
be considered participants in the solicitation of the Sierra, the Company, and MDLY stockholders in connection with the proposed
transactions is set forth in the Joint Proxy Statement/Prospectus filed with the&nbsp;SEC. More detailed information regarding
the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, is set forth
in the Joint Proxy Statement/Prospectus and in other relevant materials that may be with the&nbsp;SEC. These documents may be obtained
free of charge from the sources indicated above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This communication contains &ldquo;forward-looking&rdquo; statements,
including statements regarding the proposed transactions. Such forward-looking statements reflect current views with respect to
future events and financial performance, and the Company may make related oral forward-looking statements on or following the date
hereof. Statements that include the words &ldquo;should,&rdquo; &ldquo;would,&rdquo; &ldquo;expect,&rdquo; &ldquo;intend,&rdquo;
&ldquo;plan,&rdquo; &ldquo;believe,&rdquo; &ldquo;project,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;seek,&rdquo; &ldquo;will,&rdquo;
and similar statements of a future or forward-looking nature identify forward-looking statements in this material or similar oral
statements for purposes of the U.S. federal securities laws or otherwise. Because forward-looking statements, such as the date
that the parties expect the proposed transactions to be completed and the expectation that the proposed transactions will provide
sustainable and increased profits, greater likelihood of dividend growth, lower cost of capital and improved liquidity for the
Company&rsquo;s stockholders and will be accretive to net investment income for the Company, include risks and uncertainties, actual
results may differ materially from those expressed or implied and include, but are not limited to, those discussed in the Company&rsquo;s
filings with the&nbsp;SEC, and (i) the satisfaction or waiver of closing conditions relating to the proposed transactions described
herein, including, but not limited to, the requisite approvals of the stockholders of each of Sierra, the Company, and MDLY, Sierra
successfully taking all actions reasonably required with respect to certain outstanding indebtedness of the Company and MDLY to
prevent any material adverse effect relating thereto, certain required&nbsp; approvals of the&nbsp;SEC, the necessary consents
of certain third-party advisory clients of MDLY, and any applicable waiting period (and any extension thereof) applicable to the
transactions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, shall have expired or been terminated,
(ii) the parties&rsquo; ability to successfully consummate the proposed transactions, and the timing thereof, and (iii) the possibility
that competing offers or acquisition proposals related to the proposed transactions will be made and, if made, could be successful.
Additional risks and uncertainties specific to the Company include, but are not limited to, (i) the costs and expenses that the
Company has, and may incur, in connection with the proposed transactions (whether or not they are consummated), (ii) the impact
that any litigation relating to the proposed transactions may have on the Company, (iii) that projections with respect to dividends
may prove to be incorrect, (iv) the market performance of the combined portfolio, (v) the ability of portfolio companies to pay
interest and principal in the future; (vi) whether Sierra, as the surviving company, will trade with more volume and perform better
than the Company prior to the proposed transactions; and (vii) negative effects of entering into the proposed transactions on the
trading volume and market price of the Company&rsquo;s common stock. There can be no assurance of the level of any dividends to
be paid, if any, following consummation of the merger. Investors are cautioned that, as a result of a number of factors (including
those described above), there remains substantial uncertainty regarding the ability of MCC and Sierra to successfully consummate
MCC&rsquo;s proposed merger with Sierra.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing review of important factors should not be construed
as exhaustive and should be read in conjunction with the other cautionary statements included in each of the Company&rsquo;s, Sierra&rsquo;s
and MDLY&rsquo;s filings with the&nbsp;SEC, including the Joint Proxy Statement/Prospectus relating to the proposed transactions,
and in the &ldquo;Risk Factors&rdquo; sections of each of the Company&rsquo;s, Sierra&rsquo;s, and MDLY&rsquo;s most recent Annual
Report on Form 10-K and most recent Quarterly Report on Form 10-Q. The forward-looking statements in this communication represent
the Company&rsquo;s views as of the date of hereof. The Company anticipates that subsequent events and developments will cause
its views to change. However, while the Company may elect to update these forward-looking statements at some point in the future,
the Company has the current intention of doing so except to the extent required by applicable law. You should, therefore, not rely
on these forward-looking statements as representing the Company&rsquo;s views as of any date subsequent to the date of this material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investor Relations Contact:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sam Anderson</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Head of Capital Markets &amp; Risk Management</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Medley Management Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">212-759-0777</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Media Contacts:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jonathan Gasthalter/Nathaniel Garnick</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Gasthalter &amp; Co.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">212-257-4170</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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