This week we continue our conversation with Timothy J. Conway, chairman and chief executive officer of NewStar Financial. Founded by Mr. Conway in 2004, NewStar is focused exclusively on providing sophisticated financing options to mid-sized companies through four national lending groups: leverage finance, business credit, equipment finance, and real estate. Second of two parts – View part one

The Lead Left: So are you seeing banks retreat from leveraged financings?

Timothy Conway: Yes. This is the big macro trend in our market. Until recently, banks were still the largest providers of senior debt in the leveraged middle market. That has changed significantly in the last 18 months and we expect that trend to continue due to enforcement of the regulatory guidelines. The landscape in our target market is shaped by a handful of sophisticated, reliable, relationship-oriented non-banks including Antares, Golub, Madison and NXT, and of course, NewStar.