NewSpring Raises $250M For Third Growth Equity Fund

NewSpring Capital said it closed its third growth equity fund, NewSpring Growth Capital III, with total commitments of $250 million. The fund exceeded its target of $200 million and is larger than the firm’s $136 million first growth equity fund, NewSpring Growth Capital, and $163 million second fund, NewSpring Growth Capital II.  The firm has combined assets under management of over $950 million.

PRESS RELEASE

NewSpring Capital Raises $250 Million Growth Equity Fund

Radnor, PA - May 3, 2013 – NewSpring Capital (“NSC”), a leading U.S. private equity firm, announced today the closing of its third growth equity fund, NewSpring Growth Capital III, L.P. (“NSG III” or the “Fund”), with total commitments exceeding the Fund’s target of $200 million and reaching its hard cap of $250 million.  NSG III will seek to build upon the successes of its predecessor funds, NewSpring Growth Capital, L.P., a $136 million growth equity fund and NewSpring Growth Capital II, L.P., a $163 million growth equity fund.  Since its inception in 1999, NSC has raised seven funds across its growth, healthcare and mezzanine platforms, with combined assets under management of over $950 million.

“We are extremely pleased with the continued support we receive from our existing investor base and are excited to have attracted a well-diversified group of new highly regarded institutional investors,” said Michael DiPiano, co-founder and Managing General Partner of NewSpring Capital.  The Fund’s Limited Partners consist of leading asset management firms, endowments, entrepreneurs, family offices, foundations, fund-of-funds, insurance companies and public pension plans.

NSG III will maintain its unique approach of partnering with leading growth stage businesses in the information technology, enabling technology and business services sectors, with an emphasis on the Mid-Atlantic region.  The NSG III investment team will leverage well established industry sourcing networks to identify and partner with the Mid-Atlantic region’s top entrepreneurs, providing capital and guidance to assist them in turning their visions into reality.  Successful historical partnerships include: eCount, Inc. {sold to Citigroup (NYSE: C)}, a leading electronic payments platform company; NitroSecurity, Inc. {sold to Intel Corporation (NASDAQ: INTC)}, a prominent provider of security information and event management solutions; Nutrisystem, Inc. (NASDAQ: NTRI), a leading ecommerce based weight loss provider and TMG Health, Inc. (sold to Health Care Service Corporation), a major business process outsourcing company focused on government sponsored health insurance plans.

Marc Lederman, co-founder of NSC and General Partner of NSG III stated, “Since our founding, we have strived to position NewSpring Capital as the preferred partner of the top management teams in the Mid-Atlantic region.  We are truly excited about the opportunities that lie ahead for NSG III and its investors.”

“Through our operational backgrounds, we strive to deliver value added insights and guidance while maintaining a consistent, long term view of each investment,” added Glenn Rieger, General Partner of NSG III. “We are looking forward to building out NSG III’s portfolio and rewarding the faith our LPs placed in us by providing them with strong returns.”

NSG III is led by a stable team with more than 80 years of combined operational and investment experience.  Along with the three General Partners, Messrs. DiPiano, Lederman and Rieger, the Fund team also includes Eric Jensen, Principal, and eight investment professionals.

Similar to its predecessor funds, NSG III’s investment criteria consists of: i) Growth Stage Businesses focusing on capital efficient, scalable and disruptive business models typically with revenue at the time of investment of between $5 and $50 million; ii) transaction size of $5 to $25 million in equity capital, typically with minority ownership, with the ability to syndicate larger investments and iii) investing in Business Services, Enabling Technologies and Information Technology industries.

NSG III completed its first portfolio company investment in the fourth quarter of 2012 with an $8.2 million investment in eXelate, Inc., a leading provider of offline and online data sets for digital advertisers.

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