Babson Moves into Middle Market

Babson Moves into Middle Market

Babson Capital Management has formed Babson Capital Finance (BCF) as a new operating subsidiary to provide financing to middle-market companies and specialized industries.

“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 Tom Finke, CEO and Chairman of Babson Capital Management, who notes that many regional banks and other traditional financiers have either reduced their activity levels or withdrawn completely from the leveraged finance market in recent years due to increasing financial regulations and changing economic conditions.

“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,” said Mr. Finke.

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 has $180 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA, New York, Chicago, Charlotte and Los Angeles and nine other offices in Europe, Asia and Australia (

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-15-13

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