NewStar combines the power of a proven alternative investment management platform with a market-leading direct lending franchise strategically aligned with world-class partners. As a result, we can do more to help our private equity clients achieve their investment objectives with a complete set of financing options and the capacity to underwrite or arrange large transactions. And, our fund investors benefit from proprietary access to a broad pipeline of lending opportunities with attractive risk-adjusted returns that are not generally available to investors without established origination and credit management capabilities.
Middle Market Direct Lending
NewStar is a leading provider of flexible financing options to private equity-backed companies in the middle market. We offer a complete range of financing alternatives used to fund acquisitions, working capital, growth strategies and recapitalizations.
The Company employs dedicated teams of highly seasoned bankers and credit professionals to source, structure and manage illiquid credit investments that are directly originated with private equity firms and mid-sized companies nationwide. Our team understands the unique dynamics of middle market M&A and brings a valuable perspective to every deal, informed by their industry expertise and decades of transaction experience.
Our team’s deal experience and industry expertise enable us to deliver quick market reads and transaction proposals that keep pace with clients who have time-sensitive, complex needs. And, our credit process was purpose-built for a fast-paced M&A environment and has proven time and again that we deliver what we promise. As a result, our clients can be confident in us as a responsive, reliable partner that executes with certainty.
With more than $6 billion of assets under management and $1.3 billion of long-term capital supporting our balance sheet lending activities, NewStar has the scale and capabilities to meet most needs. We also have the flexibility to provide solutions that make sense for us and our clients without the uncertainty of shifting regulatory priorities.
As a frequent issuer with a long track record and a global investor base, NewStar ranks among the leaders in the loan securitization market, having completed 21 transactions that represent approximately $8 billion of CLO issuance since inception.
NewStar has a long history of working in partnership with private equity firms and their portfolio companies to achieve shared goals and investment objectives. We have maintained a consistent approach to this market and have completed new deals in every quarter since our inception in 2004, including during the financial crisis when others either pulled back or lost their access to capital.
NewStar has earned a reputation as a smart, reliable lender by helping private equity firms achieve their investment objectives for more than a decade. So, we believe our single best endorsement is the amount of repeat business we do with our clients. More than a hundred different private equity firms have chosen us as a lender for multiple transactions, and we have done five or more deals with twenty-five different firms. It is that kind of track record that led to Mergers & Acquisitions magazine’s recognition of NewStar as Mid-Market Lender of the Year in 2015.EXPLORE MIDDLE MARKET DIRECT LENDING
Sophisticated, institutional investors increasingly recognize the relative value of floating-rate loans compared to other fixed income investment alternatives. These senior secured loans provide a natural hedge against rising rates. They also offer premium yields and tight deal structures with significant lender protections, as well as a priority claim on assets pledged as collateral.
As an alternative asset manager, NewStar leverages its credit management capabilities, strategic relationships and proprietary balance sheet lending activities to offer a range of investment strategies focused on middle market loans and liquid tradeable credit. With the approximately $3 billion we manage on behalf of investors, we employ a range of strategies with differing risk/return targets across various investment vehicles, including un-levered direct lending strategies through co-mingled funds, fully-levered strategies through CLOs and separate accounts with a spectrum of parameters tailored to investor preferences.
NewStar manages a series of private credit funds that co-invest in middle market loans originated through its established direct lending platform and its relationship with GSO Capital. NewStar’s interests are always clearly aligned with investors in accounts that employ this co-investment strategy because we systematically invest in the same loans alongside the funds we manage.
Through its wholly-owned subsidiary, NewStar Capital, the Company also manages assets across a series of CLOs that invest primarily in broadly syndicated loans, as well as other sponsored funds and managed accounts that invest across various liquid, non-investment grade asset classes, including broadly syndicated loans and bonds. Through a fundamental, bottom-up approach to credit analysis and active portfolio management, NewStar Capital’s investment team identifies attractive relative value opportunities across non-investment grade asset classes, industry sectors and issuers to generate attractive risk-adjusted returns for investors.
Our investment products attract interest from a range of institutional investors from around the world, including financial institutions, insurance companies, pensions, endowments, foundations, family offices and hedge funds among others.
NewStar Financial Inc. and its wholly-owned subsidiary, NewStar Capital LLC, are investment advisers registered with the U.S. Securities and Exchange Commission (“SEC”).EXPLORE ASSET MANAGEMENT