NewSpring held the final close of its fourth mezzanine fund, raising $364 million with a focus on the manufacturing and business services sectors.
NewSpring Mezzanine Capital IV provides investors an option to invest in a Small Business Investment Company (SBIC) Fund, which is NewSpring’s fifth SBIC license.
“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, NewSpring General Partner.
The fund has had momentum specifically in manufacturing and business services, and has deep relationships within the lower-middle market.
“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,” said NewSpring General Partner Andrew Panzo. “Combined with our team’s operational expertise, the Fund is well-positioned to create positive outcomes for business owners and investors.”
He added that the $2 billion firm’s deal flow pipeline remains strong.
Former Intrepid Capital Partners Managing Director Joe DeLuca recently joined the firm as an operating partner, bringing with him two decades of experience in private equity investing and in owning and operating businesses.
DeLuca’s addition allows the team to remain focused on value creation and to further meet portfolio companies’ needs, officials said in an announcement.