NewSpring closes mezz fund on $257m

The Pennsylvania-based firm surpassed its initial fund target of $200 million.

NewSpring Capital has closed on its third mezzanine fund with $257.4 million in commitments, the company said on Friday.

The NewSpring Mezzanine Capital III pulled in capital from existing and new investors to the firm, including banks, insurance companies, public pensions, investment firms and individuals, according to a statement.

The fund surpassed its original target of $200 million.

Like previous funds in the series, NSM III will investment in mezzanine securities of growing, mid-market  companies with a focus on business services, healthcare, information technology and manufacturing, the firm said.

The fund invests in non-sponsored companies on the US’s East Coast and sponsored companies across the country, according to NewSpring’s website. The fund targets companies with at least $20 million in revenue and $2 million in EBITDA.

The third fund will lead or co-lead transactions from $5 million to $20 million, the firm also said. As of 10 March, NSM III has completed 12 deals, totaling approximately $135.5 million. The firm was not immediately available to comment further.

The firm launched the fund in 2014, a filing with the US Securities and Exchange Commission shows.

The NSM III marks the private equity and debt firm’s fourth Small Business Investment Company, an investment vehicle licensed through the US Small Business Administration that supplements private funds with government money for small business loans.

NewSpring has been licensed under the SBIC program since 1999, a company statement from 2015 shows.
The firm’s previous mezzanine fund was launched in 2011 and closed on $60 million, under its initial target of $150 million, PDI data shows. The first fund, launched in 2004, raised $90 million.

Radnor, Pennsylvania-based NewSpring manages over $1.5 billion across its mezzanine debt, growth and control buyouts equity platforms, according to the statement.