NewStar Financial

NewStar Financial, Inc. was formed in June 2004 by a group of senior banking executives to capitalize on the opportunity to provide sophisticated financing alternatives to mid-sized companies and investors in the middle market. The Company was initially capitalized with $210 million provided by a group of investors led by Capital Z Partners and JP Morgan Corsair II, which included Och-Ziff Capital Management, Northwestern Mutual Life Insurance Company, and Shawmut Capital Partners. In December of 2006, NewStar raised another $235 million in gross proceeds in an Initial Public Offering of 13.8 million shares priced at $17.00 per share. The Company raised an additional $125 million in January 2008 through a follow-on offering of 12.5 million shares priced at $10.00 per share. NewStar's shares trade on the NASDAQ under the ticker symbol, NEWS. In November 2014, NewStar formed a strategic relationship with Blackstone's GSO Capital that included a long-term investment in the Company from funds managed by GSO to support the Company's strategy to accelerate growth in its direct lending and asset management activities. In addition to the investment, the scope of the relationship included an arrangement for co-lending in certain types of transactions and investing in the Company's middle market credit funds. Consistent with that strategy, NewStar announced the acquisition of a boutique, credit-oriented investment manager with $2.3 billion of assets under management in October 2015, increasing its total managed assets to $6.4 billion on a pro forma basis.
Company Growth (employees)
Type
Public
HQ
Boston, US
Founded
2004
Size (employees)
69 (est)
NewStar Financial was founded in 2004 and is headquartered in Boston, US

NewStar Financial Office Locations

NewStar Financial has offices in Boston, Chicago and Darien
Boston, US (HQ)
1250 500 Boylston St
Darien, US
9 Old Kings Hwy S
Chicago, US
612 101 N Upper Wacker Dr
Boston, US
699 Boylston St

NewStar Financial Data and Metrics

NewStar Financial Financial Metrics

USD

Net income (Q1, 2017)

1.4 m

EBIT (Q1, 2017)

14 m

Market capitalization (18-Aug-2017)

447.7 m

Cash (31-Mar-2017)

15.4 m
NewStar Financial's current market capitalization is $447.7 m.
USDFY, 2016

Sales and marketing expense

43.3 m

General and administrative expense

24.1 m

Operating expense total

67.4 m

EBIT

89.4 m

Interest expense

161.3 m

Interest income

250.7 m

Pre tax profit

48.7 m

Income tax expense

20.4 m

Net Income

28.2 m
USDQ2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017

Sales and marketing expense

7.8 m7.7 m6.7 m7.7 m9.6 m10.6 m8.8 m13.2 m7.4 m

General and administrative expense

3.9 m3.3 m3.5 m3.7 m3.8 m6.4 m4 m4.9 m4.2 m

Operating expense total

11.7 m11 m10.2 m11.4 m13.4 m17.1 m12.8 m18.1 m11.6 m

EBIT

19.7 m19.6 m17.4 m15.8 m23.2 m22.5 m20.9 m25.3 m14 m

Interest expense

13.9 m14.3 m22.3 m31.1 m31.3 m39.4 m38.5 m39.9 m41.1 m

Interest income

33.5 m33.9 m39.7 m46.9 m54.6 m62 m59.4 m65.2 m55.1 m

Pre tax profit

(3.2 m)8.5 m4.3 m8.6 m8.8 m6.9 m8.8 m14.6 m2.4 m

Income tax expense

(1.3 m)3.5 m1.8 m3.6 m3.7 m2.9 m3.6 m5.9 m971 k

Net Income

(1.9 m)5 m2.5 m5 m5.1 m4 m5.2 m8.6 m1.4 m
USDFY, 2013FY, 2014FY, 2015FY, 2016

Cash

43.4 m33 m35.9 m154.5 m

Accounts Receivable

7.4 m7.5 m13.9 m14.6 m

PP&E

833 k660 k638 k274 k

Goodwill

17.9 m17.9 m

Total Assets

2.6 b2.8 b4.1 b4 b

Accounts Payable

588 k6.6 m18.1 m4.2 m

Total Liabilities

3.4 b

Additional Paid-in Capital

655.1 m718.8 m743 m743.8 m

Retained Earnings

2.6 m14.5 m31.4 m59.6 m

Total Equity

616.2 m659.5 m647.4 m

Financial Leverage

4.2 x6.2 x6.2 x
USDQ2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017

Cash

53.3 m111.6 m28.7 m25.3 m57.5 m150.7 m34.6 m36.3 m15.4 m

Accounts Receivable

6.8 m5.2 m8.4 m10.6 m9.7 m13.3 m15.1 m14.8 m13.7 m

PP&E

748 k698 k613 k652 k624 k405 k366 k296 k254 k

Goodwill

17.9 m17.9 m17.9 m17.9 m

Total Assets

2.4 b2.4 b3.1 b3.5 b3.9 b4 b4 b4.4 b4 b

Accounts Payable

380 k615 k

Additional Paid-in Capital

672.7 m673.7 m742.7 m743.6 m745 m743 m743.9 m745.4 m744.9 m

Retained Earnings

8.2 m13.2 m17 m22 m27.1 m35.4 m40.6 m49.2 m60.1 m

Total Equity

609.1 m608.1 m657.4 m660.3 m659.4 m658.7 m671.7 m643 m

Financial Leverage

4 x4 x5.3 x5.9 x6.1 x6.1 x6.6 x6.2 x
USDFY, 2013FY, 2014FY, 2015FY, 2016

Net Income

24.6 m10.6 m16.9 m28.2 m

Cash From Operating Activities

56.8 m(110.8 m)(217.4 m)411.9 m

Purchases of PP&E

(771 k)(80 k)(218 k)(19 k)

Cash From Investing Activities

(504.4 m)(30.6 m)(967.7 m)(258.3 m)

Cash From Financing Activities

463.8 m131 m1.2 b(35 m)

Interest Paid

42.8 m57.5 m109.5 m158.1 m
USDQ2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017

Net Income

(1.9 m)5 m2.5 m5 m5.1 m4 m5.2 m8.6 m1.4 m

Accounts Receivable

6.8 m5.2 m8.4 m10.6 m9.7 m13.3 m15.1 m14.8 m13.7 m

Accounts Payable

380 k615 k10.7 m13.9 m28.3 m30.3 m19.7 m31 m32.7 m
Y, 2017

Financial Leverage

6.2 x

NewStar Financial Market Value History

Traffic Overview of NewStar Financial

NewStar Financial Company Life and Culture

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