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.