Boston, MA, September 16, 2005 - NewStar Financial Inc., a Boston-based commercial finance company, announced today that it has formed NewStar Credit Opportunities Fund, Ltd. (the "Fund") with $150 million of equity capital from Och-Ziff Capital Management Group ("Och-Ziff"), an existing NewStar investor, and Caisse de depot et placement du Quebec ("Caisse").
"The mid-cap credit markets are large and growing," stated Tim Conway, NewStar Chief Executive Officer. "NewStar has been well received in these markets across all of our business lines. The Fund will enable us to lead larger transactions and add more value for our customers."
The equity capital will be contributed to NewStar Credit Opportunities Fund, Ltd., a fund that will be managed by NewStar Financial, Inc. The Fund will invest in loans and other debt investments targeting the corporate middle market, commercial real estate and structured product sectors.
Paul-Henri Couture, Vice President of Investments at Caisse, added "we have been examining the U.S. middle market for over one year and view Tim Conway and his team at NewStar as one of the leading players in this market. In addition to this investment, we will also seek to partner with NewStar on individual transactions, with the hope of providing more capital to NewStar's customers and generating attractive returns for Caisse's depositors."
Following the completion of this offering and related debt facilities, NewStar will have approximately $2 billion of committed debt and equity capital from more than 20 financial institutions and institutional investors.
"Institutional investors are attracted to the middle market due to the ability to generate attractive returns with high current income and principal protection," noted Bharath Srikrishnan, NewStar's head of Corporate Strategy & Development. "We are excited to have broadened our relationships with Och-Ziff and Caisse and hope to further expand our relationships with leading institutional investors as our business grows."
About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital markets executives from leading financial institutions, including FleetBoston Financial, Citigroup and JP Morgan Chase, and leading institutional investors including Capital Z Partners, JP Morgan Corsair Capital Partners and Och-Ziff Capital Management Group. NewStar is focused exclusively on providing customized financing solutions to mid-sized borrowers in three lending groups: Middle Market Corporate, Commercial Real Estate, and Structured Products. For more information, please contact the appropriate individual below.
About Caisse de depot et placement du Quebec:
Caisse de depot et placement du Quebec is a financial institution that manages funds primarily for public and private pension and insurance plans. As of December 31, 2004, it held CA$102.4 billion of net assets. The leading institutional fund manager in Canada, Caisse invests in the main financial markets as well as in private equity and real estate.
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