Global private equity firm Cathay Capital has announced investing in US-based dental service organisation (DSO) Parkview Dental Partners.
Established in 2018, Parkview is a DSO based in Sarasota, Florida, US.
It currently handles 22 dental practices, offering both general dentistry and speciality dental services.
Since its establishment, the company has expanded its network from eight to 22 practices in the South-West Florida market, which is claimed to be highly fragmented due to the large number of unaffiliated dentists in the area.
Cathay’s latest investment will help Parkview to scale up its operations by acquiring new practices, as well as by adding additional ancillary dental services.
This marks Cathay’s inaugural investment in North America under its Growth Private Equity Fund (Small Cap IV), which closed at €240m ($257m) in June.
Parkview CEO Will Schlotthauer said: “We are excited to benefit from Cathay’s track record of scaling businesses while also having a growth mindset and a partnership-like approach with management teams and stakeholders.
“This new partnership is uniquely positioned to accelerate Parkview’s growth to become the market leader in the South-East. Cathay’s experience with a ‘buy and build’ strategy along with its adherence to driving culture aligns perfectly with Parkview’s goals.”
The latest transaction also features material rollover investment from the existing management team at Parkview comprising Parkview CEO Will Schlotthauer and founder and chief development officer Dr Kenneth Liszewski.
Cathay’s latest investment, in collaboration with Parkview’s management team, is expected to boost Parkview’s expansion in the $9bn dental services market in Florida, US.
For this transaction, Live Oak Banking Company and Barings provided a uni-tranche credit facility in the recapitalisation.
In addition, Barings was responsible for providing an equity co-investment together with Cathay Capital.
Cathay Capital director Ricky Roman said: “The Cathay team looks forward to leveraging our healthcare services and buy-and-build experience to accelerate the growth of Parkview as the company seeks to expand on its market-leading position in south-west Florida.”
