Houlihan Lokey Advises Gen4 Dental Partners

Houlihan Lokey is pleased to announce the successful placement of a $315 million senior secured credit facility for Gen4 Dental Partners (Gen4), a portfolio company of Thurston Group (Thurston). Proceeds from the transaction were used to refinance existing indebtedness and fund acquisitions under LOI. The transaction closed on May 13, 2024.

Founded in 2021 and headquartered in Tempe, Arizona, Gen4 is a next-generation dental service organization focused on doctor-centered mentorship and operational excellence. The company's highly innovative and unique operational model consists of ~110 offices across 14 states and is supported by a highly aligned base of 190+ doctors and 100+ doctor partners. Through its demonstrated integration framework, Gen4 has completed 45+ acquisitions since 2021 and maintains a robust acquisition pipeline with actionable and proprietary opportunities in key markets.

Founded in 1986, Thurston is a lower-middle-market private equity firm focused almost exclusively on healthcare investing. Since 2013, Thurston has founded and invested in 12 healthcare platforms, eight of which are in the dental space, including three of the largest dental service organizations: Smile Doctors, Specialized Dental Partners (FKA U.S. Endo Partners), and U.S. Oral Surgery Management. Thurston targets growth-oriented businesses in fragmented healthcare industries that maintain competitive positions and management teams committed to longevity and partnership. Over Thurston’s history, it has returned more than $4 billion in invested capital, generating strong returns for its partners through varying economic, industry, and financing cycles.

Houlihan Lokey ran a targeted process in the private credit market and leveraged this competitive tension to achieve outlier results. Given the high demand from lenders, the final terms included an upsize of the unitranche term loan to $225 million, attractive pricing, and a $75 million delayed draw term loan to further support the company’s acquisition pipeline.

Houlihan Lokey served as the exclusive placement agent to Gen4, assisting the company in arranging, structuring, and negotiating the financing.