Private Equity Firm Invests $25M in Ohio Startup DSO

New MainStream Capital (NMS), a New York based private investment firm specializing in strategic equity investments of lower middle market companies in selected growth industries, has announced that is has entered into a partnership with Dana Soper and Steven Jones to form the CORDENTAL Group, a dental support organization based in Cincinnati, Ohio.  The company happened as a result of dental practices seeking assistance with the core business functions required to support patient care. According to CORDENTAL they have six locations under consideration in the Mid-Atlantic states.  The executive team has an aggressive growth plan with a heavy focus on affiliation fueled expansion.  The 3-5 year plan is to grow the CORDENTAL  platform to 50-75 locations.  The business venture will capitalize on the “build-up” and dental industry experience brought by Soper and Jones, along with the capital and knowledge in the physician practice management space at NMS. NMS has committed $25 million of equity capital.

Dana Soper has served as a member of NMS’ Operating Executive Council (OEC) for the last two years. Prior to her affiliation with NMS, Soper was the Founder and CEO of CarePoint Partners, an alternate-site infusion therapy and specialty pharmacy provider. Under Soper’s leadership, CarePoint was built through 16 acquisitions as well as de novo openings, and ultimately operated 28 sites across nine states, serving over 6,800 patients daily. CarePoint was sold to industry leader BioScrip, Inc. in 2013. In her capacity as an NMS OEC member, Soper serves on the board of Anne Arundel Dermatology Management (AAD), where she has been instrumental in helping the team build a solid acquisition platform, resulting in AAD’s completion of five add-on acquisitions over the last twelve months.

Steven Jones served as a key member of the CarePoint executive team, leading the business development efforts in acquiring home infusion companies with over $115 million in revenues. Following his experience at CarePoint, Jones applied his business development skills to the dental industry, first with Northeast Dental Management (NEDM) where he served as Chief Corporate Development and Integration Officer. At NEDM Jones orchestrated the closing of 14 dental practice acquisitions in his first 14 months on the job, helping position the sale of NEDM to Dental Care Alliance. Jones subsequently became Chief Acquisition Officer at Dental Services Group (DSG), one of the largest dental laboratory networks in North America, where he built an acquisition network and added 12 acquired laboratories in 11 months.

Jack W. Haney, DDS rounds out the executive team.  Dr Haney will act as CORDENTAL’s clinical advisor.  Dr. Haney is a graduate of the University of Tennessee’s College of Dentistry. After dental school, he completed an Advanced Education in General Dentistry (AEGD) Residency at Barksdale Air Force Base in Louisiana and also spent time in Panama, Central America. Upon completion of his residency program in 1998, he returned to Tennessee to establish his current dental practice in Knoxville. In addition to his affiliations with the Kois Center, he is a respected member of the American Academy of Cosmetic Dentistry, American Dental Association, Tennessee Dental Association, and the Oral Design & Implant Study Club, an affiliate of the Seattle Study Club.

NMS is currently investing NMS Fund II, with $252 million in capital commitments. They focus on companies headquartered in North America poised to benefit from sustainable growth trends, with a concentration on service oriented businesses in healthcare services, business services, consumer products and services. NMS focuses on equity investments ranging from $10 million to $50 million and typically target private companies with enterprise values less than $300 million.

Source: New MainStreet Capital, CORDENTAL Group