New MainStream Capital is targeting $650 million for its fourth lower mid-market fund, according to a Form D.
The firm’s sectors of focus, healthcare and business services have seen positive headwinds during the pandemic.
Chicago Teachers committed $20 million, while NYS Teachers committed $100 million. Both were also LPs in the firm’s previous vehicle.
New MainStream was spun out of Goldman Sachs’ merchant banking division in 2010 by managing partners Martin Chavez and Kevin Jordan. Other partners are Luis Gonzalez, Thomas C Nolan and chief financial officer James G Wilson, according to the firm’s website.
The prior fund is still early in its life, so returns are not yet meaningful. According to a consultant performance report given to Los Angeles City Employees’ Retirement System last year, its net internal rate of return as of December 31, 2019 was -4.7 percent, as Buyouts reported.
According to New MainStream’s Form ADV, the firm charges the industry-standard fee structure of a 2 percent management fee, 20 percent carry and an 8 percent hurdle.
New MainStream did not respond to a request for comment.
Action Item: read New MainStream’s Form ADV here.