Bloomberg News

Goldman Sachs Spinoff Firm Said to Be Raising First Buyout Fund

February 01, 2012

Feb. 1 (Bloomberg) -- New MainStream Capital, an investment firm spun off from Goldman Sachs Group Inc., is seeking $250 million for its first independent private-equity fund, according to three prospective investors.

The fund will buy stakes in middle-market North American companies that attempt to capitalize on broad demographic trends in the U.S., including an aging and increasingly multicultural population, said the investors, who asked not to identified because the information is private.

New MainStream was created by Kevin Jordan and Martin Chavez in December 2010 through a spinout of portfolio companies from Goldman Sachs’ merchant-banking division. The pair teamed with Haas Wheat & Partners, a Dallas-based private-equity firm, to purchase the portfolio they had previously managed.

Jordan, like Chavez a former Goldman Sachs managing director, declined to comment on the fundraising.

The firm, which has offices in New York and Dallas, controlled about $250 million at the time of the spinoff, according to its website. Pantheon Ventures, a private-equity fund of funds manager based in London and San Francisco, participated in the 2010 deal.

New MainStream makes equity investments from $10 million to $50 million in companies with enterprise values from $50 million to $300 million, according to its website. The firm primarily invests in health-care, consumer and business-services companies.

The buyout firm in July sold H2O Plus LLC, a Chicago-based skincare-products manufacturer, to Pola Orbis Holdings Inc., Japan’s fourth-largest cosmetics maker, for $91 million. The following month, New MainStream completed a $195 million dividend recapitalization of MCCI Holdings LLC, a Miami-based medical-services manager, according to its website.

--Editors: Steven Crabill, Josh Friedman

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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