NewSpring has held a final close of its fourth mezzanine fund, NewSpring Mezzanine Capital IV LP (NSM IV), with $364 million of capital, the largest mezzanine fund the firm has ever raised.
NewSpring mezzanine invests in companies with at least $20 million of revenue and $2 million of EBITDA. Typical transaction types include unitranche, second lien, preferred equity, and equity co-investment. NewSpring has investment experience in business and consumer services, niche manufacturing, distribution, and tech-enabled services but overall is industry agnostic.
NSM IV is organized as a Small Business Investment Company (SBIC) fund and is the firm’s fifth SBIC license since its founding in 1999. Today, the firm manages over $2 billion in capital across five strategies – including growth equity, control buyouts, mezzanine debt, healthcare and franchises – and has invested in over 170 companies.
According to NewSpring, its newest fund received support from existing and new investors, including a group of banks, insurers, public plans, financial institutions, and individuals.
“For investors, this fund gives them the exciting opportunity to actively participate in the growth of lower-middle market businesses that are transforming our modern economy,” said Steve Hobman, a general partner at NewSpring and one of the founding partners of the firm’s mezzanine strategy. “We’re thrilled by their support, which enables us to build on the existing momentum of this strategy.”
“As a result of the pandemic, many lower-middle market companies are seeking working capital that can help them weather economic downturns and fuel their next phase of growth. Combined with our team’s operational expertise, the fund is well-positioned to create positive outcomes for business owners and investors,” said Andrew Panzo, a general partner at NewSpring and one of the founding partners of the firm’s mezzanine strategy. “Our deal flow pipeline remains strong, and we’re excited to continue this momentum.”
In May 2021, NewSpring exited its investment in Spiro Health, a Massachusetts-based provider of prescription-based home medical equipment, through a sale to Pennsylvania-based AdaptHealth (NASDAQ: AHCO). Upstream Capital and NewSpring invested in Spiro Health in May 2020
Headquartered near Philadelphia in Radnor, Pennsylvania, NewSpring is a provider of private equity capital through a family of funds including NewSpring Ventures, NewSpring Health, and NewSpring Mezzanine.
© 2021 Private Equity Professional | August 10, 2021
