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.
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Employee Rating

3.0More
TypePublic
HQBoston, US
Founded2004
Size (employees)69 (est)
Websitenewstarfin.com
NewStar Financial was founded in 2004 and is headquartered in Boston, US
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Key People/Management at NewStar Financial

Mehdi Mahmud

Mehdi Mahmud

President and Chief Executive Officer
Frank A. Benevento

Frank A. Benevento

Managing Director, Product Specialist
Robert K. Brown

Robert K. Brown

Managing Director, Head of Corporate Development
Timothy Connolly

Timothy Connolly

Senior Vice President, Head of Technology and Operations
Michael J. Eisenstein

Michael J. Eisenstein

Managing Director and Treasurer, Lending and CLOs
Daniel D. McCready

Daniel D. McCready

Head of Credit Risk Management for Direct Lending
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NewStar Financial Office Locations

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

NewStar Financial Revenue

USD

Net income (Q3, 2017)

4.6m

EBIT (Q3, 2017)

15.6m

Market capitalization (22-Dec-2017)

488.6m

Cash (30-Sep-2017)

62.5m
NewStar Financial's current market capitalization is $488.6 m.
Annual
USDFY, 2013FY, 2015FY, 2016

Sales and marketing expense

32.7m35.9m43.3m

General and administrative expense

16.7m16.0m24.1m

Operating expense total

49.4m51.9m67.4m

EBIT

84.7m80.8m89.4m
Quarterly
USDQ3, 2013Q1, 2014Q2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017Q2, 2017Q3, 2017

Sales and marketing expense

7.4m7.8m7.8m7.7m6.7m7.7m9.6m10.6m8.8m13.2m7.4m6.7m7.5m

General and administrative expense

4.1m4.4m3.9m3.3m3.5m3.7m3.8m6.4m4.0m4.9m4.2m3.6m4.4m

Operating expense total

11.5m12.1m11.7m11.0m10.2m11.4m13.4m17.1m12.8m18.1m11.6m10.3m11.9m

EBIT

18.7m20.6m19.7m19.6m17.4m15.8m23.2m22.5m20.9m25.3m14.0m15.0m15.6m
Annual
USDFY, 2013FY, 2014FY, 2015FY, 2016

Cash

43.4m33.0m35.9m154.5m

Accounts Receivable

7.4m7.5m13.9m14.6m

PP&E

833.0k660.0k638.0k274.0k
Quarterly
USDQ3, 2013Q1, 2014Q2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017Q2, 2017Q3, 2017

Cash

88.0m24.1m53.3m111.6m28.7m25.3m57.5m150.7m34.6m36.3m15.4m49.7m62.5m

Accounts Receivable

10.0m7.1m6.8m5.2m8.4m10.6m9.7m13.3m15.1m14.8m13.7m13.5m15.5m

PP&E

323.0k765.0k748.0k698.0k613.0k652.0k624.0k405.0k366.0k296.0k254.0k239.0k212.0k

Goodwill

17.9m17.9m17.9m17.9m17.9m17.9m
Annual
USDFY, 2013FY, 2014FY, 2015FY, 2016

Net Income

24.6m10.6m16.9m28.2m

Cash From Operating Activities

56.8m(110.8m)(217.4m)411.9m
Quarterly
USDQ3, 2013Q1, 2014Q2, 2014Q3, 2014Q1, 2015Q2, 2015Q3, 2015Q1, 2016Q2, 2016Q3, 2016Q1, 2017Q2, 2017

Net Income

6.4m6.2m(1.9m)5.0m2.5m4.3m9.4m4.0m7.5m12.7m1.4m5.5m

Depreciation and Amortization

(6.3m)

Accounts Payable

380.0k615.0k10.7m13.9m28.3m30.3m19.7m31.0m32.7m

Cash From Operating Activities

13.6m(135.6m)(220.3m)
USDY, 2017

Financial Leverage

6.2 x
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NewStar Financial Operating Metrics

NewStar Financial's Total Loans was reported to be $3.1b in Q2, 2017. NewStar Financial's Assets Under Management was reported to be $6.7b in FY, 2016.
FY, 2014Q1, 2015Q2, 2015Q3, 2015FY, 2015Q1, 2016Q2, 2016Q3, 2016FY, 2016Q1, 2017Q2, 2017

Assets Under Management

$3.38 b$6.95 b$6.74 b

Non-accrual Loans

$87.81 m$100.30 m$101.95 m$107.66 m$11.27 m$114.46 m$95.93 m$87.29 m$92.86 m$96.39 m$88.67 m

Total Loans

$2.37 b$2.57 b$2.77 b$3.09 b$3.24 b$3.16 b$3.23 b$3.28 b$3.32 b$3.23 b$3.11 b
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NewStar Financial Company Life and Culture

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NewStar Financial Frequently Asked Questions

  • When was NewStar Financial founded?

    NewStar Financial was founded in 2004.

  • Who are NewStar Financial key executives?

    NewStar Financial's key executives are Mehdi Mahmud, Frank A. Benevento and Robert K. Brown.

  • How many employees does NewStar Financial have?

    NewStar Financial has 69 employees.

  • Who are NewStar Financial competitors?

    Competitors of NewStar Financial include First Interstate BancSystem, First Investment Bank and Standard Life Investments.

  • Where is NewStar Financial headquarters?

    NewStar Financial headquarters is located at 1250 500 Boylston St, Boston.

  • Where are NewStar Financial offices?

    NewStar Financial has offices in Boston, Darien and Chicago.

  • How many offices does NewStar Financial have?

    NewStar Financial has 4 offices.