New MainStream Capital announced it partnered with company founder Tim Kinnetz in the recapitalization of Iowa-based GrapeTree Medical Staffing LLC.

The transaction closed Oct. 22; terms were not disclosed.

In addition, New MainStream Capital operating executive council member Bob Livonius will serve as a board member of GrapeTree. Livonius most recently was president of workforce solutions for AMN Healthcare Services (NYSE: AMN). He is also the former chairman of the American Staffing Association, and currently serves on the board of ettain group.

“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,” Livonius said.  

GrapeTree will serve as the platform investment in New MainStream Capital’s effort to build a 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, the private equity firm made a “substantial capital commitment” that will be used to add employees, expand service offerings and make strategic acquisitions.

New MainStream Capital previously invested in Medfinders, which was sold to AMN Healthcare Services Inc. (NYSE: AHS) in 2010. IT staffing company ettain group is currently an New MainStream portfolio company.

Kinnetz, a former travel nurse, founded GrapeTree in 1999 in Milford, Iowa. The firm serves facilities across the Midwest and focuses on CNA staffing in nursing homes and assisted living facilities, as well as LPNs and RNs in hospitals. GrapeTree has more than 100 employees and year to date 2017, more than 1,600 different healthcare professionals have worked at least one GrapeTree shift.