Fairmount Partners Advises Duck Donuts in Sale to NewSpring

MECHANICSBURG, PA –  NewSpring (the “Firm”), a family of private equity strategies, today announced that NewSpring Franchise, the Firm’s newest strategy focused on investing in innovative franchise and multi-unit concepts, has completed the acquisition of Duck Donuts. Free Fenix, a Charlotte, NC-based hybrid investment company, partnered with NewSpring on the deal, providing a significant investment to further accelerate growth.

Duck Donuts is one of the nation’s fastest-growing donut franchise companies

Russ DiGilio, founder and original CEO of Duck Donuts, launched the now-iconic donut brand in 2007 in the town of Duck in the Outer Banks of North Carolina. Since beginning to franchise in 2013, the Company today operates one international and 101 U.S. franchise locations across 21 states. Headquartered in Mechanicsburg, Pennsylvania, Duck Donuts has grown into a leading franchise company and built its reputation on serving warm, delicious, and made-to-order donuts, providing superior guest service in a family-friendly atmosphere, and supporting local communities.

Duck Donuts will use the proceeds from the transaction to accelerate growth

By partnering with NewSpring, Duck Donuts will be able to accelerate growth, increase brand awareness, and strengthen corporate and franchise culture. NewSpring will provide access to capital and additional resources to strengthen the Company’s existing infrastructure and locations.

“Duck Donuts could not be more excited to partner with the NewSpring team, who offer a wealth of knowledge and experience that will elevate our brand to the next level. The past 14 years have been an amazing journey and we wouldn’t be where we are today without the dedication, passion, and trust of our franchisees and corporate team members. I look forward to watching the brand continue to evolve and build on the success we have already achieved in such a short period.”— Russ DiGilio, Founder and former CEO of Duck Donuts

Duck Donuts is led by an innovative, growth-oriented leadership team

In conjunction with the deal, Duck Donuts founder Russ DiGilio, who remains a significant owner, has stepped down as CEO and named Betsy Hamm, formerly chief operating officer, to the role. Hamm will focus on building and protecting the franchise brand and providing best-in-class franchise support while driving company growth and profitability. She is responsible for strengthening company culture, ensuring operational efficiencies, and maximizing franchisee success. DiGilio will continue in his founder role and serve as an integral member of the Duck Donuts Board of Directors, alongside Satya Ponnuru and Patrick Sugrue.

“At NewSpring Franchise, we seek out multi-unit brands with a loyal customer base and a fast-growing geographic footprint. Duck Donuts perfectly fits that model. Duck Donuts is differentiated by its customer experience and CEO Betsy Hamm has done a tremendous job expanding the Company’s presence in communities across the country to position the Company for future growth into new markets. We are thrilled to partner with Betsy and her team to take Duck Donuts to the next level.”— Patrick Sugrue, NewSpring General Partner

This acquisition aligns with NewSpring Franchise’s mission of investing in innovative franchise and multi-unit concepts in large and growing markets

The acquisition of Duck Donuts is the second investment out of NewSpring Franchise, a newly-launched strategy led by NewSpring General Partners Satya Ponnuru and Patrick Sugrue, created to invest in capital-efficient, consumer-facing, multi-unit businesses with a strong customer value proposition, proven unit-level economics, and exceptional management teams in the lower-middle market. Having successfully partnered with over 170 businesses in this market segment for over 20 years, NewSpring’s team of operational experts and value-add approach is well-positioned to serve a wide range of growing companies to accelerate growth.

“As a leader in the made-to-order donut category with a strong business model that’s attractive to new franchisees, Duck Donuts has quickly expanded its geographic footprint and grown its number of locations. The Company’s customizable product and award-winning customer service continue to elevate and differentiate the Duck Donuts brand and we look forward to growing its presence across the U.S.”— Satya Ponnuru, NewSpring General Partner

Fairmount Partners acted as exclusive financial advisor to Duck Donuts on the transaction.

For more information, visit www.fairmountpartners.com.

Contact: Jonathan Smith

NewSpring Invests in Leading Specialty Pharmacy

Radnor, PA
August 22, 2018

NewSpring (the “Firm”), a family of private equity funds, announced today that NewSpring Mezzanine (“NewSpring”), the Firm’s dedicated mezzanine strategy, has made an investment in Total Care RX, Inc. (“Total Care RX” or the “Company”) alongside Gemini Investors and Celerity Partners. Proceeds from the transaction will be used to finance the growth of the existing platform.

Founded in 2002, Total Care RX is a specialty pharmacy headquartered in Flushing, New York focused on filling, managing, and delivering medication for chronically ill patients, primarily organ transplant recipients and residents in long-term care facilities. The Company specializes in managing and delivering treatment regimens to all disease types with a focus on transplant care, cystic fibrosis, HIV, Hepatitis C, oncology, and nutritional care.

Click here to read more.

NewSpring Holdings Completes Series B Round Driving Continued Growth and Scale to Platform Companies

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.

Click here to read the press release via Philly Tech News.

NewSpring Capital Announces the Successful Raise of its Fourth Growth Equity Fund

Contributed by Tom Paine, Philly Tech News

2017 NEWS
May 11, 2017
NewSpring Capital Announces the Successful Raise of its Fourth Growth Equity Fund
RADNOR, PA – May 11, 2017 – NewSpring Capital (“NewSpring” or the “Firm”), a family of private equity funds providing growth and expansion capital, today announced the final close of NewSpring Growth Capital IV, L.P. (“NSG IV” or the “Fund”). The Fund successfully raised $280 million, making it the largest growth fund to date and bringing NewSpring’s total assets under management to $1.7 billion.

NSG IV received strong support from existing and new investors, including a diverse group of family offices, insurance companies, public pension plans, fund of funds, financial institutions, and university endowments. Consistent with the investment strategy of its predecessor funds, NSG IV 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.

Click here to read the full press details.

NewSpring Capital Raises $257 Million Mezzanine Fund

NewSpring Capital Raises $257 Million Mezzanine Fund
RADNOR, PA – March 9, 2017 – NewSpring Capital, a family of private equity funds providing growth and expansion capital, today announced the final close of its third mezzanine fund, NewSpring Mezzanine Capital III, L.P. (“NSM III” or the “Fund”). In total, the Fund exceeded its initial target of $200 million and closed at $257.4 million. NSM III received strong support from existing and new investors, including a diverse group of banks, insurers, public plans, financial institutions and individuals. As a Small Business Investment Company (“SBIC”) under the Small Business Administration, NSM III marks the fourth SBIC licence for the Firm.

“Having surpassed our initial target of $200 million, NSM III will enable us to continue to execute on the success of our previous funds,” said Greg Barger, NewSpring General Partner. “We appreciate the continued support of our existing investors and are excited to work with our new limited partners.”

Click here to read full press details.