Radnor-based NewSpring Capital has lately had a hankering for doughnuts, writes Joseph N. DiStefano for The Philadelphia Inquirer.

The private-investment group manages $2.5 billion for investors. It’s put that money into growth companies like medical devices, business software, specialty manufacturers and retailers.

Last month, though, it bought a big stake in Philadelphia-based Federal Donuts and its 11 stores.

This year, NewSpring got a controlling stake when it added more than 40 franchised stores under the Duck Donuts chain, based in Mechanicsburg.

So why does NewSpring think there’s dough in doughnuts?

NewSpring partners Satya Ponnuru and Patrick Sugrue joined the firm in 2020 and launched a new strategy to invest in small companies with great brands that could support an accelerated growth plan and grow faster than the larger economy.

Ponnuru said both companies have great brands with customer value propositions that are “off the charts, and the ability to grow substantially.”

 Sugrue added that franchising as an investment vehicle has been a good place to put your money for a long time.

“It’s all about really knowing your brands — and being able to follow consumer trends, recognize which are fads and which have staying power,” Sugrue said.

Read more at The Philadelphia Inquirer about New Spring’s doughnut investment.