Smile Partners Secures Continued Growth with New Funding from BlackRock and Hollyport Capital

Smile Partners Secures Continued Growth through New Funding

In a significant move to bolster its operations, Smile Partners USA, a leading dental support organization, recently announced a recapitalization through a new continuation fund. This strategic financial maneuver is marked by the backing from prominent funds managed by BlackRock Secondaries Liquidity Solutions and Hollyport Capital.

Since its inception in 1982 and headquartered in Troy, Michigan, Smile Partners has cultivated an extensive network comprising over 100 dental offices across five major markets in the United States. This recent partnership illustrates continued confidence from Silver Oak Services Partners, who first invested in Smile Partners in 2017. The company has since completed more than 75 affiliations, significantly expanded into four new states, and partnered with over 80 doctor owners, all while ensuring strong retention amongst those doctors.

The new continuation fund allows Smile Partners to continue its trajectory of growth, affirming the success of its doctor-centric partnership model, which values retention and holistic care. According to Dan Gill, the Managing Partner at Silver Oak, this deal not only secures major liquidity for investors but also brings in fresh capital to facilitate ongoing expansion efforts.

Under the terms of the investment, the general partnership of Silver Oak has opted to reinvest their entire capital stake along with proceeds from the transaction, showcasing a strong belief in the future of Smile Partners. Furthermore, Smile Partners’ management team and its network of doctor partners maintain a considerable ownership stake in the business—a move that ensures alignment of interests among all stakeholders involved.

Dave Gaspar, CEO of Smile Partners, expressed gratitude for the ongoing support from both Silver Oak and newly involved investors like BlackRock and Hollyport Capital. He emphasized that this marks a pivotal milestone for Smile Partners and its over 1,000 employees, who are committed to delivering premier patient care in their communities.

Jefferies played a crucial role as the exclusive financial advisor during this transaction, thanks to its specialized Private Capital Advisory and Healthcare teams, while Kirkland & Ellis acted as legal counsel for Silver Oak, supporting them through this complex process. Meanwhile, Akin Gump fulfilled the legal advisory role for BlackRock and Hollyport Capital, ensuring that the process went smoothly.

As Smile Partners continues to pave its path in the dental support realm, the future appears promising with the recent infusion of capital. By targeting not only expansive growth but also enhancing the quality of patient care, the organization is setting itself up for sustained success and influence within the dental industry.

About Smile Partners

Smile Partners excels in providing general and specialty dentistry services across major metropolitan areas, including Detroit, Chicago, Atlanta, Birmingham, and Denver. Its community dental practices prioritize patient-centric approaches, demonstrating a commitment to quality and responsive care, rooted in various core values.

About Silver Oak Services Partners

Established in 2005, Silver Oak is a private equity firm focusing on the lower middle market. Its approach revolves around forming partnerships with outstanding management teams to promote leading businesses in consumer and healthcare services.

About Hollyport Capital

Founded in 2006, Hollyport specializes in the secondary investment realm, focusing on realizing value in private equity assets and providing liquidity solutions, strengthening its reputation in the finance sector.