NewSpring has held a final and oversubscribed close of NewSpring Mezzanine Capital V LP with $390 million of capital commitments.
NewSpring’s new mezzanine fund (NSM V) was backed by both existing and new limited partners including banks, insurers, public pension plans, financial institutions, and individuals.
Like its earlier mezzanine funds, NSM V is organized as a Small Business Investment Company (SBIC) fund and is the firm’s fifth SBIC license since its founding in 1999. NewSpring’s fourth mezzanine fund closed in August 2021 with $364 million of capital, at that time the largest mezzanine fund the firm had ever raised.
NewSpring Mezzanine invests from $5 million to $25 million in companies with at least $20 million of revenue and $2 million of EBITDA. NewSpring’s transaction types include unitranche, second lien, preferred equity, and equity co-investment. The group’s sectors of interest are wide and varied, effectively making it industry agnostic. However, sectors where NewSpring Mezzanine has specific experience include business and consumer services, niche manufacturing, distribution, and tech-enabled services.
“Our goal at NewSpring Mezzanine is to build great companies through strong partnerships. We pride ourselves on building close relationships with financial sponsors, intermediaries, and portfolio company management teams to form strategic alliances that produce lasting value for all stakeholders,” said Greg Barger, a general partner at NewSpring. “We’re thrilled with the support of our investors as the number of attractive opportunities in the lower-middle market continues to rise and look forward to continuing to expand our portfolio.”
Over the past 18 months, NSM V has been active with total investments of $273 million in 19 companies that operate in the business and consumer services, niche manufacturing, distribution, and healthcare sectors. Earlier this month, NSM V closed a subordinated debt and equity investment in Braner USA, a Chicago-headquartered designer and producer of flat rolled metal coil processing and automated metal coil handling systems. NSM V’s investment backed the acquisition of Braner USA by Holleway Capital Partners and Aldine Capital Partners.
“At NewSpring Mezzanine, we leverage our expertise to help business owners and CEOs optimize their capital structure, pursue strategic acquisitions, and make operational movements that are in line with their vision for the company,” said Anne Vazquez, a general partner at NewSpring. “As demand for mezzanine debt and other flexible capital solutions continues to rise among lower-middle-market businesses, we look forward to partnering with more great companies while putting NSM V to work on behalf of our investors.”
NewSpring Capital is a provider of private equity capital through five strategies – growth, healthcare, buyouts, franchise, and mezzanine. The firm is headquartered near Philadelphia in Radnor, Pennsylvania.
© 2024 Private Equity Professional | July 25, 2024
