CapitalSpring Celebrates Impressive 2023, Looks to 2024 to Build Continued Momentum

NEW YORK, NY – As the year draws to a close, CapitalSpring, a leading institutional investor renowned for its expertise in foodservice and multi-location business models, reflects on a year marked by significant growth and notable successes.

"It's been a strong year overall, especially on the heels of three challenging years since COVID," said Erik Herrmann, Head of the Investment Group at CapitalSpring. "We’ve really seen a light at the end of the tunnel this year in terms of margin and growth within the portfolio, partly driven by commodity normalization."

Overall, Herrmann says CapitalSpring is wrapping up 2023 with over $500 million of new capital invested across various transactions, including buyouts and financings. With higher lending rates and commercial banking challenges impacting conventional lending, CapitalSpring's credit business has been particularly well-positioned, Herrmann says, making 2023 one of its most active years in that realm.

One of the firm’s key milestones from the past year include the successful exit of its Far West Services investment in the third quarter. "That was a great outcome with a company that we have owned for the past four-and-a-half years," Herrmann said.

Looking ahead, CapitalSpring remains committed to maintaining its momentum. "On the investment end, we are targeting a similar level of activity next year," Herrmann said. With an increase in general M&A activity, the company anticipates a shift towards more acquisitions, but will continue to pursue varied investment scenarios, including buyouts, structured capital, and lending.

As CapitalSpring steps into 2024, its robust performance in 2023 sets a strong foundation for continued success. With a clear vision and proven resilience, the company is well-positioned to capitalize on emerging opportunities and drive further growth in the dynamic foodservice industry.