News
NewSpring Mezzanine Capital, L.P. Announces its First Investment as part of a $3.2 Million Mezzanine Financing for SolomonEdwardsGroup, LLC
KING OF PRUSSIA, PA – January 18, 2005 – NewSpring Mezzanine Capital, L.P., along with Argosy Partners, invested a total of $3.2 million in SolomonEdwardsGroup, a privately-held business consulting and accounting services firm. This investment is the inaugural investment for NewSpring Mezzanine Capital, L.P., which had its first closing of capital in the fourth quarter of 2004.
This investment will enable SolomonEdwardsGroup to continue its aggressive expansion plans to open eight new offices in the Midwest and West, as well as additional offices in the Northeast and Southeastern regions. "The demand for outsourced accounting and financial professional services has grown dramatically in the last two years due to the complexity of corporate governance issues and reporting requirements. With additional expansion capital, SolomonEdwardsGroup is positioned to take advantage of these market opportunities and maintain its leadership position.” said Ed Baumstein, president and CEO of SolomonEdwardsGroup, “This is also a great statement regarding the local private equity community. From inception we have grown organically with local talent right here in the Delaware Valley and the fact that our new partners are local institutional investors gives testament to the strength of the local business community. Doing business in Philadelphia, in my opinion, is the best kept secret in the country! It was very satisfying to be able to stay in the region to fund our expansion plans.” added Baumstein.
Steven D. Hobman, general partner at NewSpring Mezzanine Capital, L.P., stated, “We are pleased that SolomonEdwardsGroup is the inaugural investment for NewSpring Mezzanine Capital. We believe that Ed Baumstein and his team have a demonstrated track record of success, and we look forward to being a part of the future growth of SolomonEdwardsGroup.”
Founded in 1999, SolomonEdwardsGroup is a leading professional services firm that has successfully combined business consulting and accounting services such as internal audit, regulatory compliance, risk management, systems integration, and business process improvement with staffing and resource management. Since inception, the firm has expanded from their headquarters in the Philadelphia suburbs to three additional markets – Atlanta, GA; Washington, DC; and Ft. Lauderdale, FL.
About NewSpring Mezzanine Capital, L.P.
NewSpring Mezzanine Capital is a $40 million mezzanine fund managed under the NewSpring Capital Family of Funds. NewSpring Capital, based in King of Prussia, PA, is a family of specific purpose private equity funds, with approximately $200 million under management, focused on the Mid-Atlantic region. The Family of Funds includes, NewSpring Ventures, L.P., a venture capital fund providing equity capital to growth and expansion stage companies with a focus on information technology, business services, and healthcare; NewSpring Healthcare, L.P., a venture capital fund focused on intermediate- and late-stage life science and healthcare companies; and NewSpring Mezzanine Capital, L.P., a mezzanine private equity fund focused on late stage and buy-out opportunities in information technology, healthcare, business services and specialty manufacturing.
About Argosy Partners
Argosy Partners, a private equity firm founded in 1989, invested in SolomonEdwardsGroup through Argosy Investment Partners II, L.P., a Small Business Investment Company (SBIC). Argosy Partners provides growth capital for manufacturing, service, and value-added distribution businesses.
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