NewStar Financial

Overview

NewStar Financial is a Boston-based financial services firm specializing in customized debt financing solutions for middle-market businesses and commercial real estate borrowers. The company focuses on direct origination of loans, targeting private equity sponsors, corporate executives, regional banks, real estate investors, and other financial intermediaries. Their lending groups include Middle Market Corporate, which originates and structures senior debt, and Commercial Real Estate, which originates and structures first mortgage debt. The firm's investment strategy involves providing senior debt and, to a lesser extent, second lien mezzanine and subordinated debt, as well as equity and other equity-linked products. They primarily target companies with annual EBITDA between $5 million and $50 million and real estate properties valued between $10 million and $50 million. NewStar Financial employs experienced professionals to identify and structure transactions, aiming to be the preferred lender for mid-sized borrowers. NewStar Financial was founded in June 2004 by a team of senior banking and capital markets executives from institutions such as FleetBoston Financial, Citigroup, and JP Morgan Chase. The company went public in December 2006, with its common stock trading on the NASDAQ Global Market.

Investment Focus

• Companies with annual EBITDA between $5 million and $50 million
• Real estate properties valued between $10 million and $50 million