Fund will target lower-middle market companies in need of flexible financing
RADNOR, Pa., July 23, 2024 — NewSpring (the “Firm”), a family of private equity strategies, today announced the final close of NewSpring Mezzanine Capital V (“NSM V” or the “Fund”), out of the Firm’s dedicated private credit strategy, NewSpring Mezzanine. In total, the Fund was oversubscribed with total commitments of $390 million. NSM V received strong support from existing and new investors, including a diverse group of banks, insurers, public plans, financial institutions, and individuals.
Operating as a U.S. Small Business Administration SBIC (Small Business Investment Company) NSM V builds on the Firm’s long history within the SBIC program, which allows the Fund to leverage additional funding to support lower-middle market businesses. To date, NSM V has deployed approximately $273 million into 19 companies in the business and consumer services, niche manufacturing, distribution, and healthcare markets. This rapid deployment in just under 18 months is attributed to the team’s deep industry knowledge, extensive networks, and consistent focus within the lower-middle market, which enables them to identify and act on high-potential opportunities efficiently.
“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, NewSpring General Partner. “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 this Fund to work on behalf of our investors.”
NewSpring Mezzanine partners with business owners, either independently or with other financial sponsors, to provide a wide range of flexible mezzanine debt and equity solutions as well as access to its deep operational resources. The team, composed of investors and former operators with a relentless focus on value creation, includes two dedicated operating professionals with deep experience executing key growth initiatives at expanding businesses. With this, NewSpring Mezzanine portfolio companies receive tailored strategic guidance and operational support to help them navigate complex operating challenges and optimize opportunities that typically arise in lower-middle-market businesses to achieve their full potential.
“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, NewSpring General Partner. “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.”
About NewSpring
NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages approximately $3.5 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Having completed over 250 investments, NewSpring brings a wealth of knowledge, experience, and resources to take growing companies to the next level and beyond. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. To learn more, visit www.newspringcapital.com.
SOURCE NewSpring
