New MainStream Capital has recapitalized Anne Arundel Dermatology Management. No financial terms were disclosed. Pantheon also participated in the transaction and has acquired a minority ownership stake in ADM; however, NMS remains as the lead and control investor. Coker Capital Advisors served as financial adviser to ADM. Based in Severna Park, Maryland, ADM is a provider of dermatology services.
New York, NY, January 30, 2018 – New MainStream Capital (“NMS”), a New York-based lower middle market private equity firm specializing in healthcare services and business services, announced today that it has completed a recapitalization of Anne Arundel Dermatology Management (“ADM” or the “Company”) with participation from Pantheon, a global private equity, infrastructure and real assets investor. Pantheon has acquired a minority ownership interest in the Company, and NMS will continue as the lead and control investor in ADM. The Company’s existing management team and physician owners will continue to lead ADM and retain a significant ownership stake in the Company.
Based in Severna Park, Maryland, ADM is the largest provider of dermatology services in the state of Maryland and has additional locations in Virginia and Tennessee. ADM employs 76 providers across a platform of 33 locations providing a comprehensive suite of dermatologic services, including general dermatology, advanced treatment for skin cancer and cosmetic procedures. Scott Mahosky, CEO of ADM, commented, “NMS has been a great partner and with the investment from Pantheon we see the next phase of our organic and acquisition driven growth accelerating with the addition of another very supportive capital partner to our Company. NMS and Pantheon really understand and support our approach of strong emphasis on patient-care and providing support and resources to our physician providers.”
Martin Chavez, Managing Partner at NMS, added, “NMS has built a deep relationship with the ADM executive and clinical leadership team over the past two and a half years, and we have seen the fruits of our collective labor grow into something very special. With a patient-first mindset, always striving for the highest level of clinical care, ADM has become the provider of choice for patients and prospective practice affiliations in our markets.”
“ADM has had a successful partnership with NMS over the last two and half years, resulting in significant growth in the organization and expansion into several new geographies. We believe this marks an exciting moment in the evolution of ADM and we look forward to working with the ADM and NMS teams,” said Rudy Scarpa, Partner and Co-Head of Global Private Equity Secondaries at Pantheon. The relationship between NMS and Pantheon dates back to 2010, when Pantheon was the sole limited partner backing the firm’s spin-out from The Goldman Sachs Merchant Banking Division.
Since partnering with NMS in 2015, ADM has completed nine practice affiliations, resulting in revenues growing three-fold to a current run-rate of $78 million. The Company takes a systematic approach to integrating practice affiliations, resulting in a platform with uniform electronic medical records and back office functions, thereby enhancing the quality of care and ability to operate consistently and efficiently.
With the inclusion of Pantheon as a capital provider to ADM, this transaction positions ADM to continue on its growth trajectory through additional practice affiliations including five new affiliations scheduled for Q1 2018.
Coker Capital Advisors acted as exclusive financial advisor to ADM and Greenberg Traurig provided legal counsel.
About Anne Arundel Dermatology
Anne Arundel Dermatology is a leading provider of dermatological services in Maryland, Virginia and Tennessee. Headquartered in Severna Park, Maryland and with 33 locations and 76 providers, ADM is the largest dermatology practice in the state of Maryland providing a comprehensive suite of dermatologic services, offering general dermatology, advanced treatment options for skin cancer and cosmetic procedures.
For additional information on Anne Arundel Dermatology, visit www.aadermatology.com.
About New MainStream Capital
New MainStream Capital is a New York headquartered private investment firm specializing in strategic equity investments and leveraged buyouts of lower middle market companies. The Firm was formed through the spin-out of a group of portfolio companies from the Goldman Sachs Merchant Banking Division.
NMS focuses on companies headquartered in the U.S. poised to benefit from sustainable growth trends with particular concentration on companies in Healthcare Services and Specialized Business Services.
For additional information on NMS, visit www.nms-capital.com.