Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Capital Z Partners III GP, Ltd.
  2. Issuer Name and Ticker or Trading Symbol
NewStar Financial, Inc. [NEWS]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
_____ Officer (give title below) __X__ Other (specify below)
See Remarks Section
(Last)
(First)
(Middle)
142 WEST 57TH STREET, 
3. Date of Earliest Transaction (Month/Day/Year)
09/28/2011
(Street)

NEW YORK, NY 10019
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, $0.01 par value               4,000,000 I (1) See Footnote (1)
Common Stock, $0.01 par value 09/28/2011   J(3)   4,945 A $ 0 5,529,743 I (2) (3) See Footnotes (2) (3)

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy) $ 10.11 09/28/2011   J(3)   5,000     (4) 05/11/2018 Common Stock 5,000 $ 0 5,000 I (3) See Footnote (3)

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Capital Z Partners III GP, Ltd.
142 WEST 57TH STREET
NEW YORK, NY 10019
      See Remarks Section
Capital Z Partners III, L.P.
230 PARK AVENUE SOUTH
11TH FLOOR
NEW YORK, NY 10003
      See Remarks Section
Capital Z Partners III GP, L.P.
230 PARK AVENUE SOUTH
11TH FLOOR
NEW YORK, NY 10003
      See Remarks Section
CAPITAL Z FINANCIAL SERVICES FUND II LP
ONE CHASE MANHATTAN PLAZA
NEW YORK, NY 10005
      See Remarks Section
CAPITAL Z FINANCIAL SERVICES PRIVATE FUND II, L.P.
54 THOMPSON ST.
NEW YORK, NY 10012
      See Remarks Section
CAPITAL Z PARTNERS LP
ONE CHASE MANHATTAN PLAZA
NEW YORK, NY 10005
      See Remarks Section
CAPITAL Z PARTNERS LTD
ONE CHASE MANHATTAN PLAZA
NEW YORK, NY 10005
      See Remarks Section
Capital Z Management, LLC
142 WEST 57TH STREET
3RD FLOOR
NEW YORK, NY 10019
      See Footnote (1)

Signatures

 /s/ Craig Fisher, Authorized Signatory for Capital Z Partners III GP, Ltd.   09/29/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Due to the limitation on the amount of characters used, please see Item 1 of Exhibit 99.2 Explanation of Response.
(2) Due to the limitation on the amount of characters used, please see Item 2 of Exhibit 99.2 Explanation of Response.
(3) Due to the limitation on the amount of characters used, please see Item 3 of Exhibit 99.2 Explanation of Response.
(4) Due to the limitation on the amount of characters used, please see Item 4 of Exhibit 99.2 Explanation of Response.

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