Private equity firm Cathay Capital announced that it has invested in the dental service organization (DSO) Parkview Dental Partners. This investment marks the inaugural North American investment from Cathay’s Growth Private Equity Fund (Small Cap IV), which concluded its final close in June 2023. Cathay’s investment, in collaboration with Parkview’s management team, will expedite the Company’s expansion in Florida’s $9 billion dental services market.
Established in 2018 in Sarasota, Florida, Parkview is a DSO that presently oversees 22 dental practices providing both general dentistry and specialty dental services. Parkview operates in the dynamic Southwest Florida market, characterized by a population growth rate three times the national average, an aging population with increased dental care needs, and robust GDP growth. The Southwest Florida dental market remains highly fragmented, with a large number of unaffiliated dentists in the region. Anticipated growth in patients, dental procedures, dentists, and support staff in the Company’s footprint is expected to exceed the national average.
Since its inception, Parkview has expanded from eight practices to 22 practices today, achieving a 50% Compound Annual Growth Rate (CAGR) in revenue since 2019 through organic initiatives and successful accretive acquisitions. Through the new partnership with Cathay, the Company aims to scale by acquiring additional practices and introducing ancillary dental services, while maintaining its commitment to clinical excellence and delivering high-quality experiences for both patients and providers.
Mark Woods, partner and head of North American private equity at Cathay Capital, said, “We are excited to partner with Parkview Dental Partners as it is uniquely positioned in the DSO market. The company has a talented management team, attractive geography, and a well-developed operational playbook. We look forward to partnering with the team as they take advantage of favorable tailwinds to scale and expand.”
Ricky Roman, director at Cathay Capital, added, “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 Southwest Florida.”
Parkview CEO, Will Schlotthauer, said, “Our partnership with Cathay begins an exciting chapter for Parkview, as we look to become the pre-eminent Florida DSO supporting like-minded dentists who want to focus on providing clinically excellent care and a great patient experience. 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 Southeast. Cathay’s experience with a “buy and build” strategy along with its adherence to driving culture aligns perfectly with Parkview’s goals.”
The transaction featured material rollover investment from Parkview’s existing management team, including Will Schlotthauer, CEO, and Dr. Kenneth Liszewski, Founder and Chief Development Officer, as well as prior owner Parkstone Growth Partners. Live Oak Banking Company and Barings provided a unitranche credit facility in the recapitalization. Barings also provided an equity co-investment alongside Cathay Capital.
Provident Healthcare Partners, LLC acted as the exclusive financial advisor to the Sellers.
Parkview is a dentist-founded dental growth & management partnership that is decidedly different from corporate DSOs. Based in Sarasota, Florida, our mission is to support like-minded dentists who want to focus on providing clinically excellent care and a great patient experience, while we provide the highest level of operational support and opportunities for professional growth. For more information, visit www.parkviewdp.com
About Cathay Capital
Cathay Capital is a global private equity and venture capital investment firm supporting healthcare, technology and consumer companies throughout North America, Europe, and Asia. The firm helps middle-market companies and startups navigate opportunities for growth, international expansion, and sustainable transformation. Cathay is the partner of choice for companies aspiring to lead markets and make a positive impact. Its platform connects people with global reach and local expertise – from investors and entrepreneurs to management teams and leading corporations – to share knowledge, the tools to scale and to transform businesses.
Founded in 2007 with a strong entrepreneurial heritage, Cathay Capital now manages more than $5.5 billion in assets. It has made over 250 investments in verticals including healthcare, technology, and consumer from offices in Paris, New York, San Francisco, Munich, Berlin, Madrid, Shanghai, Beijing, Shenzhen, and Singapore. For more information, visit www.cathaycapital.com.
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