Press Release
January 16, 2008
2 minute read


Trenton, N.J. (January 16, 2008) – The New Jersey Economic Development Authority (EDA) has finalized a limited partnership investment in NewSpring Health Capital II, L.P., a diversified healthcare equity fund managed by NewSpring Capital that will invest in companies in the life sciences, medical devices and healthcare services fields. The investment was made under the state’s Edison Innovation Fund, which was created to support technology and life sciences companies throughout their discovery, development and commercialization stages and is a key element of Governor Jon S. Corzine’s Economic Growth Strategy.

“New Jersey has a rich history of scientific innovation, and the limited partnership investment in NewSpring Health will help to further encourage the location and growth of life sciences businesses and jobs in the state,” said EDA Chief Executive Officer Caren S. Franzini. “This venture fund investment will expand the critical capital resources of emerging businesses, as well as assist in the development of a New Jersey-based venture network.”

Formed in 1999, NewSpring Capital has grown from a single fund to a “family” of dedicated funds comprising more than $500 million of capital under management today. The general partners of the Fund will use the same investment strategy employed in their successful predecessor fund, which, in addition to its strong investment performance, led to a very substantial increase in total employment for the companies located in New Jersey.

Zev S. Scherl, a General Partner of NewSpring Capital who is based in the firm’s Short Hills, New Jersey office stated, “NewSpring Capital is very pleased to continue to finance the promising healthcare companies in New Jersey. The supply of local investment opportunities remains strong, and we are committed to focusing on growing and building outstanding local life sciences and healthcare companies that deliver superior investment returns. We are particularly appreciative of the EDA’s confidence and look forward to implementing the strategy that will meet the State’s investment goals.”

EDA Director of Technology and Life Sciences, Kathleen Coviello said, “Our decision to make this investment is based on NewSpring Capital’s extensive experience and strong success with prior funds.”

Coviello added that there will be a minimum requirement for 2:1 matching for the EDA’s commitment, tripling the investment dollars available to New Jersey companies.

The EDA, in consultation with the New Jersey Commission on Higher Education and the New Jersey Commission on Science and Technology, is responsible for managing the Edison Innovation Fund. In January 2007, EDA approved targeted investments of approximately $20 million in venture funds commitments to advance the Fund.

The EDA’s latest investment in NewSpring Health Capital II complements its other venture fund investments, including NextStage Capital, L.P., the Edison VI Venture Fund, Quaker BioVentures, which manages the Garden State Life Sciences Venture Fund, and the New Jersey Technology Council Venture Capital Fund. To date, the EDA has committed over $30 million in venture capital funds, which has resulted in more than $90 million being invested in New Jersey companies based on the 2:1 matching requirement.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

For information on the Edison Innovation Fund and to learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at

For information on NewSpring Capital, visit the Firm’s website at