Looks like headcount reduced by another 29, brining total company employees down to 60...

http://www.pehub.com/51389/newstar-finan...

"NewStar Financial has laid off 29 of its employees, bringing the struggling lender’s headcount to less than 60, peHUB has learned. A result of the shriveling M&A market, this round follows the layoff of 15 professionals in February.

NewStar is a Boston-based business development corporation (BDC) that lends to middle-market companies, typically in support of leveraged buyouts. The drop-off in deal value combined with the difficulty accessing long term capital has led to serious problems for a number of BDCs this year.

NewStar’s first round of layoffs happened in tandum with many of its peers. In February, NewStar, Orix Corporation, National City, Madison Capital, Churchill Financial and Freeport Financial all trimmed headcount. The majority of cuts came from origination teams, which had less work to do when M&A dried up. Industry sources said NewStar did not cut deep enough at the time and carried too much overhead to sustain its model.

Yesterday’s cuts included 11 from its origination team, a group that has shrunk from more than 15 senior professionals to a mere handful. The firm also eliminated its health care team and reduced its media team.

By eliminating deal origination professionals, lenders have essentially transformed themselves from debt arrangers to asset managers, meaning they rely on slower-growth fee-based income. Earlier this year, NewStar agreed to purchase Southern Commerce Bank in a play to become a more-stable bank holding company. That deal was terminated in August when regulators indicated the newly formed entity would not be permitted to make leveraged loans from the bank’s balance sheet.

The firm did not respond to requests for comment."