CapitalSource Inc. / CSE

About CapitalSource Inc.

4445 Willard Ave., 12th Floor, Chevy Chase, Md. 20815
www.capitalsource.com | 800-370-9431 | Founded: 2000

Industry: Financial Services | Category: Top 100 Companies

CapitalSource, which is primarily a corporate finance firm, began operating as a real estate investment trust on Jan. 1, 2006, a structure the company says will significantly cut its taxes. It now has two main businesses: its commercial lending and investment activities and its residential mortgage investments, which include home loans and mortgage-backed securities.
As of Dec. 31, 2006, CapitalSource managed a $17 billion portfolio, including $8.6 billion in its commercial lending and investing business, $5.8 billion in its residential mortgage investment business, and $2.4 billion managed on behalf of third parties.
The company has expanded into the real estate lease-finance business and into asset-management services by acquiring health properties, including 37 skilled-nursing facilities and one assisted-living facility, all of which are leased back to CapitalSource clients.
Since 2000, when it was started by John K. Delaney and Jason M. Fish, the company has become a key player in middle-market leveraged-buyout finance and specialty lending in the United States. Last year, it opened an office in London, establishing its first international base. It also formed a Canadian subsidiary in November to provide financing to middle-market companies there.
Delaney previously founded Healthcare Financial Partners, which sold for $482.3 million in 1999. Fish, formerly a partner at Farallon Capital Management, stepped down as chief investment officer earlier this year and will remain as vice chairman.
In February, CapitalSource reported that adjusted earnings for 2006, a widely followed measure of the company's operating performance, were up 62 percent for the year, to $425.7 million, or $2.51 per diluted share, compared with $263.6 million, or $2.14 per diluted share, for 2005. CapitalSource defines adjusted earnings as profit minus certain non-cash items, such as real estate depreciation.

2007 Financial Data

Total employees: 548 | Local employees: 327