NewStar Financial

What is NewStar Financial?

NewStar Financial, established in 2004 and based in Boston, Massachusetts, operates as a commercial finance company delivering customized debt financing solutions. They mainly engage in the direct origination of loans and other debt products targeted toward middle-market clients.

With specialties in Acquisition, NewStar provides a suite of financial products that include senior secured and senior subordinated debt products, revolving warehouse facilities, amortizing loans, term loans, debt securities, second lien, mezzanine and subordinated debt, along with equity and equity-linked products.

Their investment focus predominantly spans media, healthcare, financial services, consumer, retail and restaurants, business services, and manufacturing and industrial sectors. The firm is committed to strategic acquisitions, mergers, and investments as a means of expansion and industry consolidation.

Their minimum and maximum investment size is reflective of a focused strategy, amounting to $16,100,000 for targeted transactions. It's now identified as First Eagle Alternative Credit (FEAC) which indicates a rebranding from NewStar Financial.

FEAC positions itself as an experienced alternative credit manager specializing in direct lending and tradable credit strategies. The firm manages $18 billion in assets across its platforms and employs over 150 investment professionals.

It boasts top 27 rankings as a CLO manager and takes pride in its sizable investment in private companies. FEAC's direct lending arm offers flexible financing solutions to the US middle market, leveraging considerable institutional expertise and a recognized brand among private equity sponsors.

This strategy rests on proactive deal sourcing, comprehensive due diligence, underwriting expertise, and ongoing active portfolio management. Their tradable credit team, with around $13 billion AUM, takes a research-driven approach to invest in non-investment grade credit markets, focusing on secured bank loans, structured credit, and high-yield securities and is executed through CLOs and total return strategies.