NewSpring – a family of private equity strategies investing in the lower-middle market – recently announced the final close of its oversubscribed fourth healthcare fund NewSpring Health Capital IV (NSH IV), raising over $180 million. NewSpring Healthcare has a thesis-driven and domain-specific growth equity strategy, with over 20 years of experience investing in companies that help different segments of the healthcare ecosystem transform the way care is delivered to patients. And NSH IV received strong support from existing and new investors, which include a diverse group of strategics, financial institutions, and family offices. Triago acted as the exclusive placement agent for NSH IV.
The NewSpring Healthcare team focuses on proprietary deal flow, utilizing primary and secondary research to identify sectors that directly influence healthcare. And NSH IV has already made six investments before the final close, including specialized pharmaceutical distribution services provider AeroSafe Global; end-to-end sleep disorders management provider, BetterNight; cardiovascular staffing leader, Healthworks; mobile dysphagia diagnostics leader Patheous Health; provider of business process outsourcing services to behavioral health programs, Prosperity Behavior Health; and industry leader in healthcare disclosure management technology and services Verisma.
Led by Dr. Kapila Ratnam, Mike Kaplan, and Brian Murphy, it is that deep domain experience and passion for the sector that better positions the NewSpring Healthcare team to execute on strategic opportunities to help management teams grow their companies. And a team of advisory partners round out the strategy’s healthcare industry expertise, including Pete Buzy, former CEO of previous NewSpring portfolio company Paragon Bioservices; Chris Bodine, former President of CVS Caremark; Bruce Downey, former Chairman and CEO of Barr Pharmaceuticals, Inc.; and Mark Pacala, a 30-year healthcare industry veteran.
Through NewSpring Healthcare’s deep and growing deal pipeline of innovative healthcare companies, the strategy will continue to capitalize on the escalating opportunities and growing momentum within this segment of the market. And NewSpring Healthcare invests from $10 million to $25 million in lower-middle market companies that have between $10 to $100 million in revenue at the time of investment.
KEY QUOTES:
“We partner with companies that influence healthcare by using technology and human capital in novel ways. Like our team, the management teams we invest behind are passionate about easing access to care, improving outcomes, and increasing efficiency while lowering costs.” NSH IV will continue NewSpring Healthcare’s decades-long history by investing in companies that evolve and shape high-impact sectors in healthcare.”
— NewSpring General Partner Dr. Kapila Ratnam
“The NewSpring Healthcare team has extensive expertise in different segments of healthcare. We rely on this experience and our networks to influence the way we deploy capital. Our LPs recognized this differentiating factor, and we are deeply grateful for their support in what proved to be a successful fundraise in less-than-ideal macroeconomic circumstances.”
— NewSpring Partner Mike Kaplan
