First Eagle Investment Management will acquire NewStar Financial. In a related transaction, NewStar will sell a portfolio of assets, including $2.4 billion of middle-market loans, to a fund sponsored by GSO Capital Partners. To support the transaction, Wells Fargo is providing an up to $1.85 billion ABL revolver to GSO.
NewStar Financial sold its equipment finance business and related assets to Boston-based Radius Bank for approximately $140 million in cash.
Peter Schmidt-Fellner is retiring from NewStar Financial as CIO and member of the company’s board. Dan McCready, currently CCO, will succeed him as CIO and assume his role on the company’s investment committee.
NewStar Financial completed its first CLO in 2016, bringing cumulative CLO issuance to 13 transactions totaling more than $5.4 billion since inception.
NewStar Financial reported Q3/15 new funded credit investments exceeded $720 million, up 76% from $409 million in the same quarter last year.
NewStar said it completed the acquisition of Feingold O’Keeffe Capital, DBA FOC Partners, a private alternative asset management firm. FO will operate as NewStar Capital.
NewStar Financial completed a $398 million term debt securitization known as NewStar Commercial Loan Funding 2015-2, marking the company’s 12th securitization since inception and third this year.
NewStar Financial has agreed to acquire private alternative asset management firm Feingold O’Keeffe Capital. The acquisition will add $2.3 billion to NewStar’s assets under management.
NewStar Business Credit provided a $10.5 million credit facility to a northeast-based manufacturer of nonlethal tactical munitions and crowd control devices.
NewStar Financial announced Q2/15 net income of $5.0 million compared to a net loss of $1.9 million in Q2/14. NewStar noted pretax operating income was $8.6 million compared to a loss of $3.1 million in Q2/14.