With a robust acquisition and development pipeline already in the works, Mainstreet is further expanding its capital raising efforts via a multi-pronged capital markets initiative, which will create a new broker-dealer channel within the company along with a new private equity fund.
The Carmel, Ind.-based developer of post-acute care facilities has never been one to shy away from trying new capital-raising strategies to fuel development projects. In an effort to institutionalize the company’s fundraising business, Mainstreet on Tuesday launched Mainstreet Capital Partners, LLC, a FINRA-registered broker-dealer.
The new entity will focus on raising capital for a wide range of opportunities across the senior housing spectrum, Mainstreet’s Executive Vice President of Investments Scott White told SHN via email.
This will include both development and acquisitions, said White, who will lead Mainstreet Capital Partners, and who adds that the broker-dealer will partner with investors on various types of capital including equity, preferred equity and mezzanine debt.
“Raising capital is not new to Mainstreet,” said White. “What’s new is that we’re institutionalizing, professionalizing and enhancing what we’re doing on the capital raising side.”
As part of the broker-dealer launch, Mainstreet has hired Brian O’Grady to serve as the managing director and global head of fundraising for the new group. Previously, O’Grady worked at Brookfield Asset Management as a senior vice president and a private equity specialist in the private funds group.
Prior to joining Mainstreet Capital Partners, O’Grady also worked as a principal at the Park Hill Group at Blackstone—a firm that has served as a placement agent to more than 185 funds that have raised approximately $260 billion since its inception in 2005.
“I’m humbled to work with such an innovative group and I look forward to sharing the company’s vision and opportunity with investors globally,” O’Grady said in a written statement. “This is an exciting company and investment strategy that I am certain investors will find appealing.”
As an initial step toward building a capital markets platform, Mainstreet also announced the closing of Mainstreet Development Fund III, LLC, a $75 million private equity fund focused on developing transitional care properties across the U.S.
In particular, the Fund will focus on the equity component of a $750 million development pipeline of Mainstreet’s flagship NextGen post-acute healthcare properties, which the company has had underway since earlier this year, White said.
As the nation’s largest developer of post-acute healthcare properties, Mainstreet has developed more than $500 million of properties and raised $1.1 billion in capital to date.
Written by Jason Oliva