NewStar to buy Fifth Street CLO arm in latest consolidation

The transaction comes as Fifth Street is in talks to sell management of its two business development companies.

NewStar Financial has broadened its operations with the purchase of Fifth Street Asset Management’s collateralised loan obligation arm in a deal valued at $29 million.

Boston-based NewStar said it would add an additional $726 million assets under management by purchasing the CLO department, bringing pro forma AUM to $7.3