Babson Capital Management said Tuesday that it has formed Babson Capital Finance, which will provide loans to middle-market companies and specialized industries globally. Mike Hermsen, Managing Director of Babson Capital Management, was named CEO of BCF.
CHARLOTTE, N.C.–(BUSINESS WIRE)–Babson Capital Management, a global investment management firm with over $180 billion in assets under management, today 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, has been named as CEO of BCF, and will report to Tom Finke, CEO and Chairman of Babson Capital Management. Mr. Finke will also serve as chairman of BCF’s Board of Directors.
Babson Capital Management has a proven 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. This strategic realignment, combined with a balance sheet backed by its parent corporation, Massachusetts Mutual Life Insurance Company (MassMutual), enables the firm to expand its origination and investments in a broad range of products, including middle-market senior and second-lien loans, unitranche, subordinated debt and private equity co-investments. In addition, BCF will manage funds and customized separate accounts for clients seeking private finance solutions for their investment portfolios.
“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 Mr. Finke, who notes that many regional banks and other traditional financiers have either reduced their activity levels or withdrawn completely from the leveraged finance market in recent years due to increasing financial regulations and changing economic conditions. According to Mr. Hermsen, “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.”
About Babson Capital Management LLC
Babson Capital Management LLC is a leading global investment management firm with over $180 billion in assets under management as of March 31, 2013. Through proprietary research, analysis and a focus on investment fundamentals, the firm and its subsidiaries develop products and strategies that leverage our broad expertise in global fixed income, equities, alternatives, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City, Chicago, and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn. Babson Capital is a member of the MassMutual Financial Group. Learn more at www.BabsonCapital.com.