NewSpring, a family of private equity strategies providing growth and expansion capital, announced today that NewSpring Holdings LLC, the Firm’s dedicated buyout strategy, has completed a Series B financing round of preferred investment led by 17Capital. Proceeds from the round will go toward the strategic growth and expansion of NewSpring Holdings’ four existing platform portfolio companies and the acquisition of additional platforms.
Launched in 2013 and uniquely structured as a holding company, NewSpring Holdings was formed to execute a buy and build strategy with up to six platform investments in the tech-enabled services sector. Holdings’ capital structure enables the team to execute in a manner similar to that of a traditional private equity fund, but with a differentiated horizon model that allows for enhanced flexibility to maximize portfolio value.
Since inception, NewSpring Holdings has raised two rounds of capital with over $140 million in AUM to date and is projected to grow to over $350 million in consolidated revenue by year-end. With this latest capital raise, Holdings will continue to execute on its strategy to provide significant financial backing to accelerate continued growth and broaden the scope of its portfolio companies’ offerings.
“The NewSpring Holdings team has extensive operational experience to help support fast growing businesses in an impactful way,” commented Robert de Corainville, Partner and Head of 17Capital’s New York office. “We are pleased to partner with this dynamic team as they continue to build businesses and add value for their existing investors.”
To date, NewSpring Holdings has completed four platform and eight add-on acquisitions. Its portfolio includes Vertical Management Systems, one of the nation’s leading providers of data, financial networking, and account aggregation technology; Magna5, a nationwide provider of cloud-based communications and hybrid network solutions; USPack, a national logistics company focused on providing same-day and next-day delivery services to Fortune 500 corporations across the U.S.; and Wealthcare Capital Management, a pioneer of goals-based, wealth-management technology that provides wealth advisors with a solution to help clients clarify their goals and risk preferences.
“We look to grow our companies through organic and acquisitive means,” said Skip Maner, NewSpring Holdings Partner. “By teaming up with a great partner like 17Capital, we will be in a strong position to accelerate these growth initiatives.”
About NewSpring Holdings
NewSpring Holdings, NewSpring’s buy-and-build strategy focused on control buyouts and platform builds, brings a wealth of knowledge, experience, and resources to take profitable, growing companies to the next level through acquisitions and proven organic methodologies. Founded in 1999, 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 $1.7 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. 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. Visit NewSpring at www.newspringcapital.com.
17Capital is a leading, global, private equity specialist with one focus: financing successful investors in private equity. The firm provides capital to investors in the form of preferred equity or unsecured loans, with a view to helping them build their portfolio or generate liquidity for their shareholders. It has pioneered its market and, with over 35 transactions executed and over $1 billion invested in the last 3 years, has arguably built a strong leadership position. 17Capital was formed in London in 2008 and opened an office in New York in 2016. It has raised €2 billion since inception in four successive funds in 2010, 2012, 2014, and 2017. The team of 23 professionals focuses on investment opportunities in Europe and North America from $10 million and to more than $500 million. Visit 17Capital at www.17capital.com.