NewSpring Holdings raises capital from 17Capital
17Capital invests in NewSpring Holdings
|Radnor, PA – September 27, 2017 – NewSpring (“the Firm”), a family of private equity strategies providing growth and expansion capital, announced today that NewSpring Holdings LLC (“Holdings”), 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