NewSpring Celebrates 25 Years of Successfully Growing Lower-Middle-Market Businesses

Milestone serves as validation of NewSpring's thesis-driven, partnership-based approach to investing in the lower-middle market

RADNOR, Pa., May 1, 2024 /PRNewswire/ -- NewSpring ("the Firm"), a family of private equity strategies, announced today that it is celebrating 25 years of growing lower-middle-market businesses and creating value for its investors. This milestone is a testament to the durability of the lower-middle market combined with the Firm's consistent, thesis-driven, strategy-based investment approach that empowers lower-middle-market businesses to reach new levels of growth.

Over the last 25 years, the Firm has completed more than 250 investments, raised approximately $3.5 billion in total AUM, expanded its headcount to more than 70 full-time employees, and closed on 17 fund platforms and numerous co-investments while generating over $2.8 billion in realized value to our investors to date. The Firm's current portfolio of just over 100 companies has an aggregate enterprise value of approximately $12 billion. With five distinct strategies, NewSpring has made investments in founder-led, owner/operator businesses across a wide range of industries, including vertical SaaS technology, franchise restaurants, financial technology, tech-enabled healthcare services, federal intelligence agencies, and more.

"Since day one, we saw an opportunity to target lower-middle-market businesses that had been traditionally overlooked and underserved by institutional investors," said NewSpring Managing General Partner and Co-Founder Michael DiPiano. "We've grown NewSpring differently than other firms, opting to extend our expertise to new strategies and industry sectors, while keeping our fund sizes relatively consistent to optimize return potential for our investors. We've truly built the Firm our way, and today's milestone is a validation of this horizontal growth strategy. We have been blessed to have worked with so many terrific leaders and look forward to continuing our expansion into new strategies and target industries for years to come."

The lower-middle market is highly fragmented, traditionally underserved, historically less susceptible to macroeconomic shocks, and typically offers a higher volume of exit opportunities, creating massive opportunities for growth. With NewSpring's multi-strategy structure and 25 years of experience focused exclusively on this space, the Firm has codified an approach to magnifying growth in this complex market. Lower-middle-market businesses are often at a pivotal stage of growth where they can benefit greatly from operational improvements and professionalization -- two areas where NewSpring adds unique value. Over the past quarter century, NewSpring has carved out its place as a differentiated player, bringing a breadth of operational expertise, network, scale, and access to resources that lower-middle-market businesses might otherwise lack.

"A critical component to our success has been our flexible approach to providing a unique combination of operational expertise and financial capital in ways that empower CEOs and operators to grow their businesses on their own terms," said Jon Schwartz, NewSpring President and Chief Operating Officer. "Forming close partnerships has always been the key to our success. And while this will never change, we continue to find new ways to apply our approach in new markets, businesses, and industries as opportunities arise. We'd like to thank all our employees, investors, current and exited portfolio companies, and our entire network of operators and service providers that have empowered our success along the way and look forward to our next quarter-century of growing middle-market business." 

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 over $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.

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SOURCE NewSpring