Fund II has a $250 million target and will invest in mid-market healthcare services, business services and food and consumer product companies. With Maryland’s contribution, New MainStream has now collected roughly $100 million for the fund, according to Private Equity International’s Research and Analytics division. The firm focuses on making investments between $10 million and $50 million in businesses with enterprise values of less than $300 million, according to its website.
Evercore Partners is acting as placement agent for Fund II, according to SEC filings.
Maryland committed about $400 million to private equity during the first half of 2013, backing fund managers such as The Riverside Company, Triton Partners, CDH Investments, MBK Partners, HgCapital, Blue Wolf Capital Partners and ICV Partners. The $40.2 billion retirement system has a 6.2 percent actual allocation to private equity, as of the second quarter of 2013, and a long term target allocation of 10 percent.
New MainStream launched in 2010 with about $250 million to invest, most of which came from fund of funds Pantheon, one of New Mainstream’s largest investors. Managing partners Martin Chavez and Kevin Gordon, former members of Goldman Sach’s Urban Investment Group, founded New MainStream, along with three professionals from private equity firm Haas Wheat & Partners.
The firm’s portfolio of companies includes skincare brand H2O+ and home healthcare provider SunCrest Healthcare, according to the website. New MainStream operates out of New York and Dallas offices.