RLPC: Babson Capital Finance expands management team

NEW YORK Fri Nov 1, 2013 11:16am EDT

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NEW YORK (Reuters) - Babson Capital Finance, the operating subsidiary of Babson Capital Management that provides financing to middle market companies and specialized industries globally, announced two additions to its management team as the unit expands the depth and reach of its middle market platform.

Eric Lloyd, former head of market and institutional risk at Wells Fargo, has joined Babson Capital Finance as head of capital markets. Terry Harris, former managing partner and co-founder of Certus Capital Partners, has joined as head of portfolio management.

"These seasoned industry veterans will play critical roles as we continue to expand our capabilities and build Babson Capital Finance into a leading global finance company serving middle-market companies worldwide," said Mike Hermsen, chief executive officer of Babson Capital Finance, in a statement.

Babson Capital Finance, a wholly owned subsidiary of Babson Capital Management, was formed in May to provide financing to middle market companies. As reported, the formation of the subsidiary consolidated the firm's existing global middle market leveraged finance and energy finance investment teams into one unified platform.

In his role as head of capital markets, Lloyd is tasked with expanding and streamlining Babson Capital Finance's capital raising efforts across the platform to build balance sheets around the globe, Hermsen told Thomson Reuters LPC in an interview Thursday.

As head of portfolio management, Harris, a credit expert, will oversee investment selection and asset quality, as well as manage portfolio diversification with underlying investors in mind, Hermsen added.

Babson Capital Finance's origination efforts and investment offerings focus on middle market and lower middle market companies globally. Investment products include senior and second-lien loans, unitranche, mezzanine debt and private equity co-investments. The unit provides financing to mid-sized companies in the U.S., Europe, Asia and Australia.

The subsidiary's business is distinct from Babson Capital's global high-yield loan business, which focuses on broadly syndicated and generally more liquid loans to larger U.S. and European corporate borrowers.

Massachusetts Mutual Life Insurance Company (MassMutual) is the parent corporation of Babson Capital Management, a global investment management firm.

(Editing By Jon Methven)

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