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.