Daily News: May 15, 2013

Babson Launches Babson Capital Finance

Babson Capital Management announced the formation of Babson Capital Finance (BCF) as an operating subsidiary that will provide financing to middle-market companies and specialized industries globally. Mike Hermsen, managing director of Babson Capital Management, was named CEO of BCF, and will report to Tom Finke, CEO and Chairman of Babson Capital Management. Finke will also serve as chairman of BCF’s board of directors.

Babson Capital Management has a 25-year history of providing capital solutions to middle-market companies, and the formation of BCF consolidates the firm’s existing global middle-market leveraged finance and energy finance investment teams into one unified platform.

“We plan on establishing Babson Capital Finance as a leading global finance company serving middle market companies, especially those backed by financial sponsors and in certain specialized industries,” said Finke.

Hermsen said, “As these traditional providers reduce their footprint in the leveraged finance market it presents a unique opportunity for Babson Capital Finance. As a global business with teams located in the U.S., Europe, Asia and Australia, we are well positioned to fill that void.”

Babson Capital Management is a global investment management firm.