First Eagle Private Credit (NEWS) 8-K Newstar Reports Second Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

NEWSTAR REPORTS SECOND QUARTER RESULTS

Core Lending Business Drives Solid Operating Performance

• $7.7 million of adjusted net income in the second quarter or $0.21 adjusted earnings per diluted share

• $3.4 million net income in the second quarter or $0.09 net income per diluted share on a GAAP basis

• $2.5 billion of assets in the managed loan portfolio, up 18% from the first quarter

• Credit quality stable, no loan charge offs as of June 30, 2007

• $900 million of committed incremental funding capacity and $190 million of liquidity

Boston – August 8, 2007 – NewStar Financial, Inc. (NASDAQ: NEWS), today reported adjusted net income for the second quarter of 2007 of $7.7 million, or adjusted earnings of $0.21 per diluted share. On a GAAP basis, the company reported net income of $3.4 million, or $0.09 per diluted share, including the $2.7 million after-tax loss on the previously announced sale of securities and loan assets.

“Adjusted net income” and other non-GAAP financial measures used in this release are defined under “Non-GAAP Financial Measures” on page 4. We have provided a reconciliation between GAAP and adjusted (non-GAAP) measures in the attached financial tables.

“The strength of our second quarter earnings was driven by the solid performance in our core lending business. I believe the value of our direct origination platform will be even more evident in this challenging market environment,” said Tim Conway, Chairman and Chief Executive Officer. “With a liquid balance sheet and significant funding capacity we are well-positioned to capitalize on opportunities in the second half of 2007.”

Strong Origination Volume

• Overall origination volume for the quarter was $685 million, of which $121 million was syndicated to others, $143 million was sold to the NewStar Credit Opportunities Fund (NCOF), $52 million was originated for the managed ArcTurus CLO and $369 million was retained on NewStar’s balance sheet.

• Middle Market Corporate generated approximately 75% of the new volume in the quarter, while Commercial Real Estate and Structured Products produced 17% and 8%, respectively.

• We continued to grow our proprietary direct origination platform, adding two new senior bankers in the second quarter.

Growth in Managed Loan Portfolio

• Managed loan portfolio increased to $2.5 billion as of June 30, 2007, up 18% or $380 million from $2.1 billion at March 31, 2007, which excludes the assets sold. Assets managed for the NCOF increased by $67 million, or 17%, from $382 million as of March 31, 2007 to $449 million at June 30, 2007.

• Our business continues to be balanced across industry sectors and highly diversified across issuers. As of June 30, 2007, no single issuer represented more than 1% of our total assets excluding loans held-for-sale and the ten largest issuers comprised approximately 10% of the loan portfolio.

• We continue to be highly selective and focused on senior debt products, with 88% of the loan portfolio invested in senior secured loans and senior debt investments, up from 78% in the first quarter 2007.

Net Interest Income / Margin

• Net interest income before provision for credit losses was $23.3 million for the second quarter 2007 compared to $22.0 million for the first quarter 2007 and $10.3 million for the second quarter 2006.

• Net interest margin was 4.22% for the second quarter 2007 compared to 4.50% for the first quarter 2007 and 3.81% for the second quarter 2006. Adjusted net interest margin was 4.29% for the second quarter 2007 compared to 4.51% for the first quarter 2007 and 4.20% for the second quarter 2006.

Non-Interest Income

• Non-interest income was $0.4 million for the second quarter 2007, up from the $10.7 million loss for the first quarter 2007, reflecting the impairment in the RMBS portfolio and the loss on securities sold during the second quarter 2007. Non-interest income was $2.0 million for the second quarter 2006.

• Adjusted non-interest income was $4.8 million for the second quarter 2007 compared to $2.1 million for the first quarter 2007 and $2.0 million for the second quarter 2006.

Stable Commercial Loan Credit Quality

• As of June 30, 2007, we did not have any impaired loans and had not experienced any loan charge offs.

• As of June 30, 2007, we had an allowance for credit losses of $25.4 million, or 1.40% of loans compared to $22.9 million, or 1.40%, at March 31, 2007 and $12.3 million or 1.27% at June 30, 2006.

• Provision expense was $2.5 million in the second quarter 2007 compared to $2.3 million in the first quarter 2007 and $2.8 million in the second quarter of 2006.

Funding/Capital

• During the second quarter, we diversified our funding through a $600 million term debt securitization and added $400 million of new warehouse line capacity.

• Total cash and equivalents as of June 30, 2007 were $245 million, of which $79 million was unrestricted.

• Committed funding capacity exceeded $900 million as of June 30, 2007 and liquidity was approximately $190 million, including unrestricted cash and restricted cash available in CLOs for reinvestment in new loan production.

• Total stockholders’ equity increased by 4% to $434 million over first quarter levels, which included the reversal of unrealized losses previously recorded as temporary impairment on the assets sold.

• Book value per share of $11.99 increased by 4% from $11.50 for the first quarter 2007.

2

Expenses

• Operating expenses were $15.6 million in the second quarter 2007 compared to $13.0 million in the first quarter 2007, due primarily to an increase in compensation and benefits as a result of higher incentive accruals and continued build out of our direct origination and asset platforms. Operating expenses were $7.1 million for the second quarter 2006.

• Our adjusted efficiency ratio was 45% in the second quarter 2007.

Conference Call and Webcast

We will host a webcast/conference call to discuss the results today at 10:00 am Eastern Time. All interested parties are invited to participate via telephone or webcast, which will be hosted through the Investor Relations section of our website at www.newstarfin.com. Please visit the website to register for the webcast and test your connection prior to the call. You can also access the conference call by dialing (866) 316-1368 approximately 5-10 minutes prior to the call. International callers should dial (913) 312-6678. All callers should reference “NewStar Financial.”

For convenience, an archived replay of the call will be available through August 15, 2007 by dialing (888) 203-1112. International callers should call (719) 457-0820. For all replays, please use the passcode # 7734185. The audio replay will also be available through the Investor Relations section of our website at www.newstarfin.com.

About NewStar Financial

NewStar Financial is a specialized commercial finance company focused principally on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target ‘hold’ positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders.

We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company’s shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at www.newstarfin.com for more detailed transaction and contact information.

Contact:

Robert K. Brown

500 Boylston Street, Suite 1600

Boston, MA 02116

P 617.848.2558

F 617.848.4399

rbrown@newstarfin.com

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. As such, they are subject to material risks and uncertainties.

More detailed information about these factors is described in NewStar’s filing with Securities and Exchange Commission (the “SEC”), including Item 1A (“Risk Factors”) of our 2006

3

Form 10-K. NewStar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. NewStar plans to file its Form 10-Q with the SEC on or before August 14, 2007 and urges its shareholders to refer to that document for more complete information concerning NewStar’s financial results.

Non-GAAP Financial Measures

References to “adjusted net income” and “adjusted earnings per share” mean net income or earnings per diluted share, respectively, as determined under GAAP, excluding the following items: i) compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering; ii) earnings generated from the assets sold in the second quarter of 2007; and iii) the loss on the asset sale in the second quarter of 2007. GAAP requires that these items be included in net income. NewStar management uses “adjusted net income” and “adjusted earnings per share” to make operational and investment decisions, and NewStar believes that they provide useful information to investors in their evaluation of our financial performance and condition. Excluding the financial results of the assets sold during the second quarter and the compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering, eliminates unique amounts that make it difficult to assess our core performance and compare our period-over-period results. A reconciliation of adjusted net income to net income is included on pages 6 and 7 of this release.

References to “adjusted net interest margin” mean annualized interest income as determined under GAAP (excluding interest income generated from the assets sold in the second quarter 2007 and annualized interest expense as determined under GAAP) less i) excluding interest and amortization of deferred financing costs on corporate debt and ii) interest expense incurred from the assets sold in the second quarter of 2007, divided by average interest earning assets excluding the assets sold in the second quarter for the period.

Adjusted return on average assets means adjusted net income divided by average assets for the period excluding the assets sold in the second quarter. Adjusted return on average equity means adjusted net income divided by average equity for the period. Adjusted efficiency ratio means operating expenses determined in accordance with GAAP less i) compensation expense related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering; ii) earnings generated from the assets sold in the second quarter of 2007; and iii) the loss on the asset sale in the second quarter of 2007. Adjusted cost of funds means adjusted interest expense divided by average interest bearing liabilities for the period less the average corporate debt outstanding for the period and the credit facility funding for the assets sold in the second quarter of 2007. The adjusted ratios exclude unique expenses that make it difficult to assess our core performance and compare our period-over-period results.

A reconciliation of our adjusted financial measures to their GAAP equivalents is included on pages 10 and 11 of this release. NewStar’s adjusted financial measures should not be considered as alternatives to financial measures determined in accordance with GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

4

NewStar Financial, Inc.

Consolidated Balance Sheets

(unaudited)

($ in thousands)	June 30, 2007		March 31, 2007		December 31, 2006		June 30, 2006
Assets:
Cash and cash equivalents	$	79,297	$	131,391	$	103,269	$	4,325
Restricted cash		166,120		66,501		40,174		153,012
Residual interest in securitization		29,677		—		—		—
Investments in debt securities, available-for-sale		41,446		183,032		203,121		142,206
Loans held-for-sale		132,908		52,270		62,620		54,058
Loans, net		1,778,437		1,600,821		1,437,832		944,117
Deferred financing costs, net		15,956		10,989		11,614		14,947
Interest receivable		12,967		18,343		19,849		12,133
Property and equipment, net		1,683		1,051		961		1,044
Deferred income taxes, net		8,531		15,965		14,705		6,770
Income tax receivable		7,683		7,460		—		—
Other assets		15,086		31,107		21,047		11,236
Total assets	$	2,289,791	$	2,118,930	$	1,915,192	$	1,343,848
Liabilities:
Repurchase agreements	$	6,448	$	26,856	$	34,535	$	33,990
Credit facilities		604,172		852,410		625,910		332,910
Term debt		1,198,225		784,725		774,225		757,264
Corporate debt		—		—		—		37,500
Accrued interest payable		20,014		11,263		23,200		9,134
Accounts payable		285		403		4,315		745
Income tax payable		—		—		4,166		714
Other liabilities		26,180		26,394		25,426		16,252
Total liabilities		1,855,324		1,702,051		1,491,777		1,188,509
Total stockholders’ equity		434,467		416,879		423,415		155,339
Total liabilities and stockholders’ equity	$	2,289,791	$	2,118,930	$	1,915,192	$	1,343,848

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NewStar Financial, Inc.

Consolidated Statements of Operations

(unaudited)

	Three Months Ended
($ in thousands, except per share amounts)	June 30, 2007			March 31, 2007			December 31, 2006			June 30, 2006
Net interest income:
Interest income	$	50,575		$	45,488		$	39,243		$	25,164
Interest expense		27,269			23,537			23,766			14,874
Net interest income		23,306			21,951			15,477			10,290
Provision for credit losses		2,490			2,312			5,941			2,841
Net interest income after provision for credit losses		20,816			19,639			9,536			7,449
Non-interest income:
Fee income		4,290			2,553			3,006			933
Asset management income		1,251			964			692			206
Gain on derivatives		270			84			73			465
Loss on investments in debt securities		(1,486	)		(14,862	)		(846	)		—
Gain (loss) on sale of loans and debt securities		(4,342	)		75			695			24
Other income		449			469			483			355
Total non-interest income		432			(10,717	)		4,103			1,983
Operating expenses:
Compensation and benefits		12,494			10,532			47,738			5,096
Occupancy and equipment		610			492			486			416
General and administrative expenses		2,497			1,939			3,380			1,592
Total operating expenses		15,601			12,963			51,604			7,104
Income (loss) before income taxes		5,647			(4,041	)		(37,965	)		2,328
Income tax expense (benefit)		2,229			(1,595	)		(5,911	)		989
Net income (loss)		3,418			(2,446	)		(32,054	)		1,339
After tax adjustments:
Extinguishment of corporate debt expense (1)		—			—			2,805			760
IPO related compensation and benefits expense (2)		2,684			2,682			33,202			—
IPO related general and administrative expense (3)		—			—			621			5
Loss on assets sold(4)		2,662			7,736			—			—
Net interest income earned on assets sold(5)		(1,037	)		(1,274	)		(2,258	)		(1,188	)
Adjusted net income	$	7,727		$	6,698		$	2,316		$	916
Net income (loss) per share:
Basic	$	0.09		$	(0.07	)	$	(1.26	)	$	0.09
Diluted	$	0.09		$	(0.07	)	$	(1.26	)	$	0.09
Weighted average shares outstanding:(6)
Basic		36,258,021			36,257,589			25,376,446			14,699,530
Diluted		36,677,437			36,257,589			25,376,446			15,220,812
Adjusted net income per share:
Basic	$	0.21		$	0.18		$	0.09		$	0.06
Diluted	$	0.21		$	0.18		$	0.09		$	0.06
Adjusted weighted average shares outstanding:(6)
Basic		36,258,021			36,257,589			25,376,446			14,699,530
Diluted		36,677,437			36,841,994			25,910,522			15,220,812

(1) Includes interest expense, call premium, termination fee and deferred finance costs associated with the Company’s corporate debt which was repaid on December 20, 2006.

(2) Non-cash compensation charge related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering.

(3) General and administrative expense related to the Company’s initial public offering.

(4) Loss incurred in connection with the sale of assets comprised of 50 debt securities and two loans during Q2 2007, and permanent impairments on these assets. The Company retained a 14.3% residual interest in these financial assets.

(5) Net interest income earned on the assets sold during Q2 2007.

(6) Weighted average shares for all periods reflect the conversions and reverse split that occurred at the IPO.

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NewStar Financial, Inc.

Consolidated Statements of Operations

(unaudited)

	Six Months Ended June 30,
($ in thousands, except per share amounts)	2007			2006
Net interest income:
Interest income	$	96,063		$	44,080
Interest expense		50,806			25,840
Net interest income		45,257			18,240
Provision for credit losses		4,802			4,244
Net interest income after provision for credit losses		40,455			13,996
Non-interest income:
Fee income		6,843			1,743
Asset management income		2,215			273
Gain on derivatives		354			722
Loss on investments in debt securities		(16,348	)		—
Gain (loss) on sale of loans and debt securities		(4,267	)		28
Other income		918			790
Total non-interest income		(10,285	)		3,556
Operating expenses:
Compensation and benefits		23,026			10,450
Occupancy and equipment		1,102			796
General and administrative expenses		4,436			2,864
Total operating expenses		28,564			14,110
Income before income taxes		1,606			3,442
Income tax expense		634			1,462
Net income		972			1,980
After tax adjustments:
Extinguishment of corporate debt expense(1)		—			1,490
IPO related compensation and benefits expense(2)		5,366			—
IPO related general and administrative expense(3)		—			76
Loss on assets sold(4)		10,398			—
Net interest income earned on assets sold(5)		(2,311	)		(2,001	)
Adjusted net income	$	14,425		$	1,545
Net income per share:
Basic	$	0.03		$	0.16
Diluted	$	0.03		$	0.15
Weighted average shares outstanding:(6)
Basic		36,257,806			12,622,329
Diluted		36,765,552			13,143,612
Adjusted net income per share:
Basic	$	0.40		$	0.12
Diluted	$	0.39		$	0.12
Adjusted weighted average shares outstanding:(6)
Basic		36,257,806			12,622,329
Diluted		36,765,552			13,143,612

(1) Includes interest expense, call premium, termination fee and deferred finance costs associated with the Company’s corporate debt which was repaid on December 20, 2006.

(2) Non-cash compensation charge related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering.

(3) General and administrative expense related to the Company’s initial public offering.

(4) Loss incurred in connection with the sale of a portfolio of 50 debt securities and two loans during Q2 2007, and permanent impairments on these assets. The Company retained a 14.3% residual interest in these financial assets.

(5) Net interest income earned on the portfolio of financial assets sold during Q2 2007.

(6) Weighted average shares for all periods reflect the conversions and reverse split that occurred at the IPO.

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NewStar Financial, Inc.

Selected Financial Data

(unaudited)

	Three Months Ended
($ in thousands)	June 30, 2007			March 31, 2007			December 31, 2006			June 30, 2006
Performance Ratios:
Return on average assets		0.62	%		(0.50	)%		(7.83	)%		0.49	%
Return on average equity		3.22			(2.34	)		(50.91	)		3.62
Net interest margin, before provision		4.22			4.50			3.82			3.81
Efficiency ratio		65.73			115.40			263.57			57.88
Credit Quality and Leverage Ratios:
Delinquent loan rate (at period end)		—			0.51			0.57			—
Non-accrual loan rate		—			—			—			—
Net charge off rate		—			—			—			—
Allowance for credit losses ratio (at period end)		1.40			1.40			1.40			1.27
Equity to assets (at period end)		18.97			19.67			22.11			11.56
Debt to equity (at period end)		4.16	x		3.99	x		3.39	x		7.48	x
Average Balances:
Loans and other debt products, gross	$	2,018,218		$	1,816,412		$	1,525,105		$	1,020,126
Interest earning assets		2,214,635			1,978,370			1,606,785			1,083,706
Total assets		2,187,828			1,988,910			1,623,952			1,098,540
Interest bearing liabilities		1,746,340			1,519,470			1,328,178			932,242
Equity		426,211			424,063			249,773			148,542
Allowance for credit loss activity:
Balance as of beginning of period	$	22,882		$	20,570		$	14,629		$	9,438
Provision for credit losses		2,490			2,312			5,941			2,841
Net charge offs		—			—			—			—
Balance as of end of period	$	25,372		$	22,882		$	20,570		$	12,279
Supplemental Data (at period end):
Investments in debt securities, gross	$	45,556		$	210,634		$	217,314		$	152,727
Loans held-for-sale, gross		133,337			52,698			63,277			54,484
Loans held-for-investment, gross		1,812,361			1,632,105			1,467,038			963,491
Loans and investments in debt securities, gross		1,991,254			1,895,437			1,747,629			1,170,702
Unused lines of credit		442,330			336,978			302,856			229,534
Standby letters of credit		11,770			8,719			6,990			4,052
Total funding commitments	$	2,445,354		$	2,241,134		$	2,057,475		$	1,404,288
Loan portfolio	$	1,991,254		$	1,895,437		$	1,747,629		$	1,170,702
Loans owned by NewStar Credit Opportunities Fund		449,147			382,354			283,378			79,999
Loans owned by ArcTurus		15,430			—			—			—
Less: assets sold(1)		—			201,726			179,979			115,700
Managed loan portfolio	$	2,455,831		$	2,076,065		$	1,851,028		$	1,135,001
Loans held-for-sale, gross	$	133,337		$	52,698		$	63,277		$	54,484
Loans held-for-investment, gross		1,812,361			1,632,105			1,467,038			963,491
Total loans, gross		1,945,698			1,684,803			1,530,315			1,017,975
Deferred fees, net		(10,771	)		(10,182	)		(10,468	)		(8,269	)
Allowance for loan losses		(23,581	)		(21,530	)		(19,395	)		(11,531	)
Total loans, net	$	1,911,346		$	1,653,091		$	1,500,452		$	998,175
Book value per share	$	11.99		$	11.50		$	11.68		$	10.16

(1) Outstanding par value of the assets sold on June 29, 2007.

8

NewStar Financial, Inc.

Selected Financial Data

(unaudited)

	Six Months Ended
($ in thousands)	June 30, 2007			June 30, 2006
Performance Ratios:
Return on average assets		0.09	%		0.41	%
Return on average equity		0.46			3.08
Net interest margin, before provision		4.35			3.84
Efficiency ratio		81.68			64.74
Credit Quality and Leverage Ratios:
Delinquent loan rate (at period end)		—			—
Non-accrual loan rate		—			—
Net charge off rate		—			—
Allowance for credit losses ratio (at period end)		1.40			1.27
Equity to assets (at period end)		18.97			11.56
Debt to equity (at period end)		4.16	x		7.48	x
Average Balances:
Loans and other debt products, gross	$	1,917,872		$	914,227
Interest earning assets		2,097,162			957,509
Total assets		2,073,259			971,929
Interest bearing liabilities		1,633,532			825,097
Equity		424,984			129,477
Allowance for credit loss activity:
Balance as of beginning of period	$	20,570		$	8,035
Provision for credit losses		4,802			4,244
Net charge offs		—			—
Balance as of end of period	$	25,372		$	12,279
Supplemental Data (at period end):
Investments in debt securities, gross	$	45,556		$	152,727
Loans held-for-sale, gross		133,337			54,484
Loans held-for-investment, gross		1,812,361			963,491
Loans and investments in debt securities, gross		1,991,254			1,170,702
Unused lines of credit		442,330			229,534
Standby letters of credit		11,770			4,052
Total funding commitments		2,445,354		$	1,404,288
Loan portfolio	$	1,991,254		$	1,170,702
Loans owned by NewStar Credit Opportunities Fund		449,147			79,999
Loans owned by ArcTurus		15,430			—
Less: assets sold(1)		—			115,700
Managed loan portfolio	$	2,455,831		$	1,135,001
Loans held-for-sale, gross	$	133,337		$	54,484
Loans held-for-investment, gross		1,812,361			963,491
Total loans, gross		1,945,698			1,017,975
Deferred fees, net		(10,771	)		(8,269	)
Allowance for loan losses		(23,581	)		(11,531	)
Total loans, net	$	1,911,346		$	998,175
Book value per share	$	11.99		$	10.16

(1) Outstanding par value of the assets sold on June 29, 2007.

9

NewStar Financial, Inc.

Non-GAAP Data

(unaudited)

	Adjusted Three Months Ended
($ in thousands)	June 30, 2007			March 31, 2007			December 31, 2006			June 30, 2006
Performance Ratios:
Return on average assets		1.55	%		1.51	%		0.63	%		0.36	%
Return on average equity		7.27			6.41			3.68			2.47
Efficiency ratio		44.50			41.62			49.01			57.19
Net interest margin, before provision		4.29			4.51			4.37			4.20
Yield on interest earning assets		9.24			9.34			9.63			9.27
Cost of funds		6.27			6.29			6.48			6.09
Credit Quality and Leverage Ratios:
Equity to assets (at period end)		18.97			21.74			24.40			12.65
Debt to equity (at period end)		4.16			3.51			2.98			6.56
Consolidated Statement of Operations Adjustments(1):
Interest income	$	50,575		$	45,488		$	39,243		$	25,164
Less: interest income on assets sold (2)		4,038			4,401			4,136			2,181
Adjusted interest income	$	46,537		$	41,087		$	35,107		$	22,983
Interest expense	$	27,269		$	23,537		$	23,766		$	14,874
Less:
Interest expense related to assets sold(2)		2,324			2,296			1,878			993
Interest & amortization related to corporate debt		—			—			2,728			1,322
Adjusted interest expense	$	24,945		$	21,241		$	19,160		$	12,559
Non-interest income	$	432		$	(10,717	)	$	4,103		$	1,983
Plus: loss on assets sold(2)		4,400			12,787			522			—
Adjusted non-interest income	$	4,832		$	2,070		$	4,625		$	1,983
Operating expenses	$	15,601		$	12,963		$	51,604		$	7,104
Less:
Corporate debt prepayment fees		—			—			1,425			—
IPO related compensation and benefits expense(3)		3,843			3,841			39,129			—
IPO related general and administrative expense(4)		—			—			968			8
Adjusted operating expenses	$	11,758		$	9,122		$	10,082		$	7,096
Average Balances:
Interest earning assets	$	2,214,635		$	1,978,370		$	1,606,785		$	1,083,706
Less: assets sold(2)		193,795			192,949			160,083			89,152
Adjusted interest earning assets	$	2,020,840		$	1,785,421		$	1,446,702		$	994,554
Interest bearing liabilities	$	1,746,340		$	1,519,470		$	1,328,178		$	932,242
Less:
Credit facility funding for assets sold(2)		150,323			150,524			121,650			68,138
Corporate debt		—			—			33,016			37,500
Adjusted interest bearing liabilities	$	1,596,017		$	1,368,946		$	1,173,512		$	826,604

(1) Adjustments are pre-tax.

(2) On June 29, 2007, the Company completed the sale of assets comprised of 50 debt securities and two loans. The adjustment represents the financial impact of the sold assets.

(3) Non-cash compensation charge related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering.

(4) General and administrative expense related to the Company’s initial public offering.

10

NewStar Financial, Inc.

Non-GAAP Data

(unaudited)

	Adjusted Six Months Ended
($ in thousands)	June 30, 2007			June 30, 2006
Performance Ratios:
Return on average assets		1.55	%		0.35	%
Return on average equity		6.84			2.41
Efficiency ratio		43.19			62.44
Net interest margin, before provision		4.39			4.32
Yield on interest earning assets		9.28			9.30
Cost of funds		6.28			5.96
Credit Quality and Leverage Ratios:
Equity to assets (at period end)		18.97			12.65
Debt to equity (at period end)		4.16			6.56
Consolidated Statement of Operations Adjustments(1):
Interest income	$	96,063		$	44,080
Less: interest income on assets sold(2)		8,439			3,558
Adjusted interest income	$	87,624		$	40,522
Interest expense	$	50,806		$	25,840
Less:
Interest expense related to assets sold(2)		4,620			1,557
Interest & amortization related to corporate debt		—			2,590
Adjusted interest expense	$	46,186		$	21,693
Non-interest income	$	(10,285	)	$	3,556
Plus: loss on assets sold(2)		17,187			—
Adjusted non-interest income	$	6,902		$	3,556
Operating expenses	$	28,564		$	14,110
Less:
Corporate debt prepayment fees		—			—
IPO related compensation and benefits expense (3)		7,684			—
IPO related general and administrative expense(4)		—			133
Adjusted operating expenses	$	20,880		$	13,977
Average Balances:
Interest earning assets	$	2,097,162		$	957,509
Less: assets sold(2)		192,725			78,692
Adjusted interest earning assets	$	1,904,437		$	878,817
Interest bearing liabilities	$	1,633,532		$	825,097
Less:
Credit facility funding for assets sold(2)		150,422			54,138
Corporate debt		—			37,500
Adjusted interest bearing liabilities	$	1,483,110		$	733,459

(1) Adjustments are pre-tax.

(2) On June 29, 2007, the Company completed the sale of assets comprised of 50 debt securities and two loans. The adjustment represents the financial impact of the sold assets.

(3) Non-cash compensation charge related to restricted stock grants made since our inception as a private company, including equity awards made in connection with the initial public offering.

(4) General and administrative expense related to the Company’s initial public offering.

11

NewStar Financial, Inc.

Portfolio Data

(unaudited)

($ in thousands)	June 30, 2007				March 31, 2007				December 31, 2006				June 30, 2006
Portfolio Data:
First mortgage	$	304,596	15.3	%	$	243,637	12.9	%	$	216,888	12.4	%	$	141,321	12.1	%
Senior secured asset-based		80,431	4.0			56,449	3.0			50,566	2.9			43,468	3.7
Senior secured cash flow		1,375,165	68.9			1,162,643	61.3			1,082,048	61.9			719,441	61.5
Senior subordinated asset-based		121,321	6.1			279,941	14.8			247,456	14.2			152,157	13.0
Senior subordinated cash flow		33,126	1.7			55,782	2.9			35,161	2.0			33,286	2.8
Second lien		65,585	3.3			64,731	3.4			70,875	4.1			37,000	3.2
Subordinated		10,307	0.7			31,533	1.7			43,916	2.5			43,315	3.6
Mezzanine		723	—			721	—			719	—			714	0.1
Total	$	1,991,254	100.0	%	$	1,895,437	100.0	%	$	1,747,629	100.0	%	$	1,170,702	100.0	%
Middle Market Corporate	$	1,488,819	74.8	%	$	1,286,088	67.9	%	$	1,183,107	67.7	%	$	785,622	67.1	%
Structured Products		170,776	8.6			341,894	18.0			333,787	19.1			229,860	19.6
Commercial Real Estate		331,659	16.6			267,455	14.1			230,735	13.2			155,220	13.3
Total	$	1,991,254	100.0	%	$	1,895,437	100.0	%	$	1,747,629	100.0	%	$	1,170,702	100.0	%

12