Pantheon backs Goldman spin-out

Two former Goldman Sachs managing directors have launched independent private equity firm New MainStream Capital, backed by fund of funds and secondaries investor Pantheon.

New MainStream has about $250 million to invest in mid-market healthcare services, business services and food and consumer products companies that benefit from the changing demographics of the US. Joining the firm are three senior members of Dallas-based mid-market investor Haas Wheat & Partners, founded in 1984 by Robert Hass.

New MainStream co-founders and managing partners Martin Chavez and Kevin Jordan were members of Goldman’s Urban Investment Group (UIG), initially a real estate investing team that later added corporate investing. The new firm will continue the UIG’s corporate investing strategy, while the real estate business will be retained by Goldman. 

New MainStream has already purchased six portfolio companies from UIG, having raised most of the $250 million of capital from Pantheon. New MainStream will look to deploy the majority of the capital in the next three years, investing in both add-ons and new platforms.

Hass Wheat co-founder Robert Haas will become chairman of the strategic advisory committee at New MainStream. His partners Wyche Walton and Jim Wilson will become partners of New Mainstream, which will have offices in New York and Dallas.

Hass Wheat’s professional relationship with Goldman’s UIG began in 2007 when the two groups were co-investors in healthcare staffing company Nursefinders.

New MainStream Capital is one of a number of private equity spinoffs to launch their own business this year. Last week, Headland Capital Partners spun out of HSBC Private Equity (Asia), and in August, Charlotte, North Carolina-based Ridgemont Equity Partners spun out of Bank of America.

Pantheon backed another spin-out recently, acquiring a “strip” of assets from London-listed investment trust Candover Investments, which is selling private equity firm Candover Partners to a new entity called Arle Capital Partners, led by John Arney and comprising the entire 25-strong Candover Partners team.