October 23, 2017

New Mainstream Capital Announces Partnership and Investment in GrapeTree Medical Staffing

New MainStream Capital ("NMS") announced today that it has partnered with company Founder Tim Kinnetz in the recapitalization of GrapeTree Medical Staffing, LLC (“GrapeTree”). GrapeTree will serve as the platform investment in NMS’ effort to build an industry-leading provider of CNA and RN staffing to long-term care facilities and hospitals on both a per diem and contract basis. In connection with the transaction, NMS has made a substantial capital commitment to support the future growth of GrapeTree through adding employees, expanding service offerings and making strategic acquisitions.

Tim Kinnetz founded GrapeTree in 1999 in his hometown of Milford, Iowa. Having worked extensively as a travel nurse himself, Tim was intimately familiar with the challenges faced by both the healthcare facility in need of supplemental staffing and the individual tasked with providing it. Through the extensive use of technology, GrapeTree has developed a platform able to deliver both per diem and contract staffing, enabling facilities to quickly and efficiently fill staffing needs with experienced healthcare professionals and allowing CNAs, LPNs and RNs to supplement their incomes by adding shifts to their work week.

“I’m excited to take GrapeTree to the next level with this partnership,” said Kinnetz. “Bringing in outside capital and experience will not only advance the development of our team, culture and values, but will continue our growth right here in Milford.”

Kevin Jordan, NMS Co-Founder and Managing Partner remarked, “Healthcare staffing has been an investment theme for NMS for some time now, and we are very excited by the market niche GrapeTree holds and their technology-enabled approach. Tim has done a fabulous job building his team and company culture, and NMS is proud to be a part of the bright and growing future of GrapeTree.”

GrapeTree is unique in its service offering, with a focus on CNA staffing in nursing homes and assisted living facilities, as well as LPNs and RNs in hospitals. The company provides experienced, qualified professionals for as little as a single eight-hour shift or as long as a typical 13-week contract nursing assignment, and fulfills all of these needs from its headquarters in Milford, Iowa. With a focus on delivering a higher level of customer service, GrapeTree utilizes a vendor management platform that significantly improves fill rates by using its large network of affiliate suppliers, and automates delivery to enable the company to provide exceptional customer care. The strength of the GrapeTree model is evident in its growth – in 2017 year-to-date, GrapeTree’s healthcare professionals have worked over 650,000 hours, an increase of over 50% percent from 2016, and the total number of healthcare professionals who worked at least one GrapeTree shift doubled to over 1,600 in the same period.

In connection with the transaction, NMS Operating Executive Council member Bob Livonius will serve as a board member of GrapeTree. “GrapeTree is filling an important need in the marketplace that the large players are missing – local, shorter duration assignments at the CNA, LPN and RN level – and they’re doing it with technology from a single location, resulting in higher fill rates with higher quality healthcare professionals without sacrificing service level. This model has fantastic potential.” Mr. Livonius was most recently the President of Workforce Solutions for AMN Healthcare, the largest healthcare staffing company in the U.S. Mr. Livonius is also the former Chairman of the American Staffing Association, and currently serves on the Board of ettain group, an IT staffing company in the NMS portfolio.

The financial advisor for GrapeTree was Provident Healthcare Partners, LLC and legal advisors were Nyemaster Goode PC and Sackett Law Firm. NMS’ legal advisor was Greenberg Trauig, LLP. Financing for the transaction was provided by Crescent Capital Group LP.

ABOUT GRAPETREE

Founded in 1999 by travelling RN Tim Kinnetz, GrapeTree Medical Staffing is a healthcare staffing agency that provides staffing solutions to healthcare facilities across the Midwest by providing healthcare professionals to fill last-minute or long-term shifts left by staffing shortages. GrapeTree is rated one of the top 10 most reliable staffing firms in the Midwest and is certified by The Joint Commission, recognized nationwide as a “Gold Seal of Approval” and a symbol of quality that reflects an organization’s commitment to meeting high performance standards.

Inc. magazine just ranked GrapeTree Medical Staffing #665 on its 36th annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. GrapeTree was also once again honored in 2017 as one of America’s fastest growing staffing firms by Staffing Industry Analysts. GrapeTree ranked #1 for Iowa/Midwest, #10 for healthcare staffing firms, and #12 for all staffing firms on the list of Fastest Growing U.S. Staffing Firms.

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 the firm's website at

www.nms-capital.com.

FOR FURTHER INFORMATION:

Tim Kinnetz

Founder and CEO

GrapeTree Medical Staffing, LLC

(712) 336-0800 x101

Tim.Kinnetz@grapetree.org

Kevin Jordan

Managing Parter

New MainStream Capital

(212) 422-7211

kjordan@nms-capital.com