Growth Capital • Financial Services

Corsair Capital and Capital Z Partners Invest In NewStar Financial

On July 21, 2004, private equity firms Corsair Capital and Capital Z Partners invested in financial services company NewStar Financial

Investment Context
  • This is Corsair Capital’s 4th and Capital Z Partners’ 2nd transaction in the Financial Services sector.
  • This is Corsair Capital’s 1st and Capital Z Partners’ 2nd transaction in the United States.
  • This is Corsair Capital’s 1st and Capital Z Partners’ 1st transaction in Massachusetts.
Investment Fate
  • NewStar Financial went public in 2006.
  • NewStar Financial was sold to a strategic buyer in 2017.

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Investment Summary

Date July 21, 2004
Target NewStar Financial
Sector Financial Services
Investor(s) Corsair Capital
Capital Z Partners
Deal Type Growth Capital

Target Company

NewStar Financial

Boston, Massachusetts, United States
NewStar Financial, Inc. is an internally-managed, commercial finance company with $7.3 billion of assets managed across two complementary business lines — middle market direct lending and asset management. The Company's direct lending activities are focused on meeting the complex financing needs of companies and private investors in the middle markets through specialized lending groups that offer a range of flexible debt financing options. Credit investments are originated directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. Through its asset management platforms, NewStar offers a range of investment products employing credit-oriented strategies focused on middle market loans and liquid, tradeable credit.
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Investors Overview 2

Investor

Corsair Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 9.9B USD
Size Mega
Type Sector Focused
DESCRIPTION

Corsair Capital is a private investment firm focused on investments in the financial services industry. Specific areas of interest include banks, insurance companies, credit card specialists, asset managers, private banks, mortgage lenders, financial technology firms, and finance companies. The Firm looks to invest between $50 to $100 million in companies with proven business models and 'meaningful' barriers to entry. Corsair will consider opportunities around the world, including the US, Europe, Latin America, and Asia. Prospective transactions include recapitalizations, growth capital financings, management buyouts, and special/distressed situations. Corsair Capital was originally established in 1992 and is based in New York City. Corsair has an additional office in London.


Deal Context for Investor #
Overall 5 of 29
Sector: Financial Services 4 of 11
Type: Growth Capital 1 of 3
State: Massachusetts 1 of 1
Country: United States 1 of 13
Year: 2004 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-04-01 Catlin Group

Hamilton, Bermuda

Catlin Group Ltd. is a specialty insurance and reinsurance provider . Areas of expertise include Marine, Professional Indemnity, Aviation, Energy, and Industrial. Catlin's property catastrophe reinsurance and marine businesses are viewed as 'Best in Class' at Lloyd's.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Powszechny Zakland Ubezpieczen S.A.

Warsaw, Poland

Powszechny Zakład Ubezpieczeń Spółka Akcyjna provides various insurance products for retail and corporate customers in Poland, Lithuania, and Ukraine. Its products include group and individual life, dowry, annuity, accident, unit-linked, property, motor, casualty, agricultural, and financial insurance products.

Buy -
Investor

Capital Z Partners

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 3.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Capital Z Partners is a private equity firm focused on the financial services sector. The Firm targets companies in the US, Bermuda, and the UK and looks to commit $25 to $100 million as a primary or co-investor partner. Specific areas of interest include insurance (property, life, health, reinsurance, and specialty markets), services (insurance distribution, claims management, asset servicing, and outsourced service providers), specialty finance (commercial finance, consumer finance, banks, and leasing), and securities (fund management, broker-dealers, and wealth management). Capital Z Partners was established in 1990 and is headquartered in New York City.


Deal Context for Investor #
Overall 2 of 14
Sector: Financial Services 2 of 6
Type: Growth Capital 2 of 5
State: Massachusetts 1 of 1
Country: United States 2 of 8
Year: 2004 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-02-01 Aames Investment

Los Angele, United States

Aames originates mortgage loans in 47 states. Aames Financial is a 50-year-old national mortgage banking company focused primarily on originating non-prime residential mortgage loans through wholesale and retail channels under the name "Aames Home Loan

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-25 Aames Investment

Los Angele, United States

Aames originates mortgage loans in 47 states. Aames Financial is a 50-year-old national mortgage banking company focused primarily on originating non-prime residential mortgage loans through wholesale and retail channels under the name "Aames Home Loan

Sell -