NewSpring Capital, the $1 billion-asset Radnor venture capital fund group headed by Michael DiPiano, says its new buyout arm, NewSpring Holdings LLC, has purchased Wealthcare Capital Management, Richmond, Va., for an undisclosed sum; NewSpring typically invests $5 million to $25 million in its targets.
The 14-year-old Virginia firm offers "goals-based wealth management technology," brand name Comfort Zone, which is licensed to 30,000 investment advisors, according to NewSpring. NewSpring's investment will help Wealthcare grow faster, NewSpring Holdings general partner Skip Maner said in a statement.
Chester County investor Len Reinhart, former head of Smith Barney's Consulting Group, Lockwood Cos. and BNY Mellon Pershing Managed Account Solutions, will serve as executive chairman of Wealthcare. In a statement, Reinhart praised founder Dave Loeper as a pioneer of "investment management by objective" and said Loeper will be replaced as CEO by former Healthaxis chief executive and JusticeLink founder Michael Ashker.