NewSpring Raises $364 Million in Fourth Mezzanine Fund, Hits Hard Cap
August 05, 2021
Fund will target lower-middle market companies in need of flexible financing for long-term growth
NewSpring (the "Firm"), a family of private equity strategies, today announced the final close of its fourth mezzanine fund, NewSpring Mezzanine Capital IV ("NSM IV" or the "Fund"). In total, the Fund raised $364.3 million, making it the largest mezzanine fund the Firm has raised to date. NewSpring Mezzanine provides a wide range of flexible mezzanine debt and equity solutions, combined with deep operational expertise for growing lower-middle market companies in resilient, expanding industries.
NSM IV provides an option to invest in a Small Business Investment Company (SBIC) Fund, NewSpring’s fifth SBIC license, and received strong support from existing and new investors, including a diverse 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. We're thrilled by their support, which enables us to build on the existing momentum of this strategy."
The Fund has considerable momentum with investments in sectors where NewSpring Mezzanine has significant experience, like manufacturing and business services. With deep relationships in the lower-middle market and a stable, consistent team, NewSpring has the operational advantage to deploy capital in all economic environments. And with the economy at an inflection point, NSM IV will continue to capitalize on the growing demand for flexible capital.
"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. Our deal flow pipeline remains strong, and we're excited to continue this momentum."
NewSpring Mezzanine recently added to its operational experience roster with the addition of Joe DeLuca, NewSpring Operating Partner and industry veteran with significant experience serving as a Board member, CEO, CFO, and COO for several growing companies. This addition allows the team to remain focused on value creation and further meet portfolio companies' needs in a wide array of markets.
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 over $2.0 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Having invested in over 170 companies, 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.