Newtek Business Services Corp. (NEWT): History, Ownership, Mission, How It Works & Makes Money

Ever wonder how small to medium-sized businesses thrive? Newtek Business Services Corp. (NEWT), now known as NewtekOne, Inc., has been a pivotal player since 1999, offering a suite of financial and business solutions. But how exactly does this financial holding company operate, who owns it, and what's its mission? Keep reading to discover how NewtekOne empowers SMBs across all 50 U.S. states with solutions ranging from banking and lending to technology and payment processing, helping them grow their sales, control expenses, and reduce risk.

Newtek Business Services Corp. (NEWT) History

Founding Timeline

Year established

The company was initially established in 1998.

Original location

The company's original location was in New York, NY.

Founding team members

The founder and current Chairman, President, and Chief Executive Officer is Barry Sloane.

Initial capital/funding

Information regarding the specific initial capital or funding for the company is not readily available in the provided search results.

Evolution Milestones

Transformative Moments

• Becoming a BDC (2014): This was a significant shift, allowing the company to invest directly in small businesses and offer financing solutions.
• Internalizing Management (2017): This move streamlined operations and reduced costs, improving overall efficiency.
• Conversion to an FHC (2022): This transformation broadened the company's scope, enabling it to provide a more comprehensive suite of financial services.
• Acquisition by BGC Group, Inc. (2023): The acquisition provided the company with additional resources and support, positioning it for continued growth and expansion within a larger financial ecosystem.

To gain more insights into the investors and motivations behind investing in the company, check out this detailed profile: Exploring Newtek Business Services Corp. (NEWT) Investor Profile: Who’s Buying and Why?

As of February 16, 2024, the company’s common stock is no longer trading on the NASDAQ Stock Market.

In January 2023, the company was acquired by BGC Group, Inc. for $12.83 per share in cash.

Newtek Business Services Corp. (NEWT) Ownership Structure

Understanding a company's ownership structure is crucial for investors as it reveals who has control and influence over its decisions. The ownership structure of a company can provide insights into its stability, strategic direction, and potential alignment of interests between management and shareholders.

Newtek Business Services Corp.'s Current Status

Newtek Business Services Corp. is now publicly traded under the ticker symbol 'NEWT'. This transition impacts its ownership structure, regulatory requirements, and financial reporting practices.

Newtek Business Services Corp.'s Ownership Breakdown

The ownership of Newtek Business Services Corp. is distributed among various types of shareholders. Institutional investors, mutual funds, and individual shareholders all hold significant portions of the company's stock. Here's an overview:

Newtek Business Services Corp.'s Leadership

The leadership team plays a vital role in guiding the company's strategic direction and operational execution. Key members of the leadership team include:

• Barry Sloane: Chairman, President, and Chief Executive Officer
• Nicholas Leger: Chief Accounting Officer

These individuals, along with other members of the executive team, are responsible for the day-to-day management and strategic planning of Newtek Business Services Corp.

For more detailed insights into Newtek Business Services Corp.'s financial standing, consider exploring this resource: Breaking Down Newtek Business Services Corp. (NEWT) Financial Health: Key Insights for Investors

Newtek Business Services Corp. (NEWT) Mission and Values

Newtek Business Services Corp. focuses on providing a comprehensive range of business and financial solutions, underpinned by a commitment to fostering the growth and success of small to medium-sized businesses (SMBs). The company's values emphasize innovation, client service, and integrity in delivering tailored solutions.

Newtek's Core Purpose

Official mission statement

Newtek's mission is to be a premier provider of business and financial solutions, enabling the success of small and medium-sized businesses (SMBs) across the United States. This is achieved through a comprehensive suite of products and services, delivered with expertise and a commitment to client success. Newtek aims to empower entrepreneurs and business owners by providing them with the tools, resources, and support they need to thrive in today's competitive market.

Key elements of Newtek's mission include:

• Comprehensive Solutions: Offering a wide array of services, from financial solutions like lending and insurance to business solutions such as technology and marketing support.
• Empowering SMBs: Focusing on the unique needs of small and medium-sized businesses, providing them with tailored solutions that address their specific challenges and opportunities.
• Expertise and Support: Delivering services through a team of experienced professionals who are dedicated to helping clients achieve their business goals.
• Commitment to Success: Measuring success by the success of its clients, fostering long-term relationships built on trust and mutual growth.

Vision statement

While a specific, formally declared vision statement may not be publicly highlighted, Newtek's vision is evident in its strategic objectives and long-term goals. The company aspires to be the leading provider of integrated business solutions for SMBs, recognized for its innovation, client satisfaction, and positive impact on the small business community.

This vision is supported by:

• Innovation: Continuously developing and adopting new technologies and service offerings to meet the evolving needs of SMBs.
• Client Satisfaction: Prioritizing the client experience, ensuring that businesses receive exceptional service and support.
• Market Leadership: Expanding its reach and influence in the SMB market, becoming the go-to resource for businesses seeking comprehensive solutions.
• Positive Impact: Contributing to the growth and prosperity of the small business sector, driving economic development and job creation.

Company slogan/tagline

Newtek employs various taglines and marketing messages that underscore its commitment to small business success. These slogans often highlight the company's comprehensive solutions and client-focused approach.

Examples of taglines and themes associated with Newtek include:

• Your Business Solutions Provider: Emphasizing the company's role as a one-stop-shop for all business needs.
• Empowering Small Business: Highlighting the company's dedication to supporting the growth and success of SMBs.
• Integrated Solutions for Growth: Positioning Newtek as a provider of comprehensive, integrated services that drive business growth.

To delve deeper into Newtek's financial stability and strategic positioning, consider exploring: Breaking Down Newtek Business Services Corp. (NEWT) Financial Health: Key Insights for Investors

Newtek Business Services Corp. (NEWT) How It Works

Newtek Business Services Corp., now known as InfraCap REIT, is internally managed real estate investment trust. It used to operate as a business development company (BDC) providing financial and business solutions to small and medium-sized businesses (SMBs).

InfraCap REIT's Product/Service Portfolio

InfraCap REIT operates primarily in the real estate sector, focusing on infrastructure-related assets.

InfraCap REIT's Operational Framework

InfraCap REIT operates by strategically investing in real estate and infrastructure assets and offering financing solutions. Key aspects of its operational framework include:

• Investment Strategy: InfraCap REIT identifies and invests in properties and infrastructure projects with strong growth potential and stable cash flows.
• Asset Management: The company actively manages its portfolio to optimize performance, increase occupancy rates, and reduce operating expenses.
• Financing Activities: InfraCap REIT provides debt and equity financing to real estate developers and infrastructure companies, generating income through interest and capital gains.
• Partnerships: The company collaborates with industry partners to source deals, share expertise, and enhance its market presence.

InfraCap REIT's Strategic Advantages

InfraCap REIT possesses several strategic advantages that enable it to succeed in the competitive real estate market:

• Experienced Management Team: The company is led by a team of seasoned professionals with extensive experience in real estate, finance, and infrastructure.
• Strong Market Position: InfraCap REIT has established a strong presence in key markets, allowing it to capitalize on emerging opportunities and generate attractive returns.
• Diversified Portfolio: The company's diversified portfolio of assets reduces risk and provides a stable income stream.
• Access to Capital: InfraCap REIT has access to various funding sources, enabling it to pursue growth opportunities and meet its financial obligations.

To gain more insights into the company's historical financial performance, consider exploring: Breaking Down Newtek Business Services Corp. (NEWT) Financial Health: Key Insights for Investors

Newtek Business Services Corp. (NEWT) How It Makes Money

The company primarily generates revenue by offering a suite of business and financial solutions to small and medium-sized businesses (SMBs), including business lending, electronic payment processing, managed technology solutions, and insurance services.

Newtek Business Services Corp.'s Revenue Breakdown

Newtek Business Services Corp.'s Business Economics

The company operates under an economic model that leverages both interest income from its lending activities and fee-based income from its service offerings. Here are some key aspects of its business economics:

• Pricing Strategy: The pricing varies across its services. Loan pricing depends on factors such as credit risk, loan size, and prevailing interest rates. For payment processing and managed technology solutions, pricing is typically subscription-based or transaction-based.
• Economic Fundamentals: The overall economic health and the small business sector significantly influence the company's performance. During economic expansions, demand for loans and business services typically increases.
• Cost Structure: A significant portion of the cost structure includes the cost of revenue (primarily related to payment processing and technology solutions), salaries, and administrative expenses.

Newtek Business Services Corp.'s Financial Performance

Here's a look at the company's financial performance:

• Total Investment Income: For the year 2024, the company reported total investment income of $165.8 million.
• Net Investment Income: The net investment income for the same period was $72.5 million.
• Earnings Per Share: The basic earnings per share stood at $2.27, while the diluted earnings per share were $2.17.
• Total Expenses: The company's total expenses amounted to $93.3 million for the year 2024.

Learn more about the company's investors and their motivations: Exploring Newtek Business Services Corp. (NEWT) Investor Profile: Who’s Buying and Why?

Newtek Business Services Corp. (NEWT) Market Position & Future Outlook

As of April 2025, is strategically positioned to leverage its technology and service platform to capitalize on the growing demand for comprehensive business solutions among small and medium-sized businesses (SMBs). However, it faces competition and market risks that could impact its growth trajectory.

Competitive Landscape

The competitive landscape for business services is diverse and includes companies with varying market shares and key advantages.

Opportunities & Challenges

faces numerous opportunities and challenges that will shape its future performance.

Industry Position

stands as a key player in the business and financial services industry, particularly focused on serving the SMB market. Its industry position can be further understood through the following points:

• Focus on SMBs: specifically targets small and medium-sized businesses, offering tailored solutions that address their unique needs.
• Integrated Platform: The company provides an integrated platform of services, including lending, payment processing, insurance, and technology solutions, aiming to be a one-stop-shop for SMBs.
• Technology-Driven: emphasizes its technology platform to deliver efficient and scalable services, differentiating itself from competitors with more traditional approaches.

To gain more insight into the company's guiding principles, refer to: Mission Statement, Vision, & Core Values of Newtek Business Services Corp. (NEWT).