Houlihan Lokey Advises AmeriVet Partners Management

Houlihan Lokey is pleased to announce the successful placement of $325 million of PIK loans for AmeriVet Partners Management, Inc. (AmeriVet), a portfolio company of AEA Investors LP (AEA). The transaction closed on November 30, 2023.

The financing comprised a $250 million PIK loan and a $75 million PIK delayed draw facility. Proceeds from the transaction will be used to fund near-term acquisition obligations, partially repay existing senior indebtedness, and help fund organic growth initiatives. The delayed draw facility will help support future clinic acquisitions.

Founded in 2016 and based in San Antonio, Texas, AmeriVet is a leading veterinary services platform with more than 200 clinics across 35 states. The company has grown rapidly via acquisition since its founding, acquiring ~150 clinics over the past three years. AmeriVet was a pioneer in the industry, popularizing the joint venture (JV) model in the U.S. vet market. The JV model offers a superior value proposition for selling vets, encouraging sellers to maintain an ownership stake in their clinic to align incentives and allow them to share in the upside from operational enhancements. AmeriVet has quickly become a gold standard in vet practice management, balancing clinical autonomy with hands-on collaboration to give vet partners the resources they need to optimize clinic performance.

Founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co., AEA is a middle-market private equity firm with approximately 120 investment professionals who operate globally across offices in New York, Stamford, San Francisco, London, Munich, and Shanghai. The firm manages approximately $19 billion of invested and committed capital, including leveraged buyouts, growth capital, and debt investments.

Houlihan Lokey served as the exclusive placement agent to AmeriVet, assisting the company in arranging, structuring, and negotiating the financing. This transaction highlights the team’s expertise and continued leadership in raising PIK securities with bespoke terms in an uncertain market environment.