Houlihan Lokey Advises HighFive Healthcare

Houlihan Lokey is pleased to announce the placement of a $100 million growth equity investment in HighFive Healthcare (HighFive or the company) led by Norwest Venture Partners (NVP) as well as a Senior Secured Credit Facility consisting of a revolver, term loan, and delayed-draw term loan. Proceeds from the financing were used to refinance existing indebtedness and provide meaningful incremental liquidity to fund future acquisitions as well as to pay transaction-related fees and expenses. The transaction closed on June 13, 2023.

Founded in 2018 and headquartered in Birmingham, Alabama, HighFive is a differentiated dental support organization that focuses on the specialty dental market. HighFive is composed of a group of doctor-owned oral surgery and endodontic practices, with a proven model that elevates private practice with scale and optimization. HighFive doubled its size in 2022 through the acquisition of partnering practices and organic growth and has experienced further growth throughout the Southeast thus far in 2023. HighFive’s goal is for every patient to have an exceptional experience in each of its practices. HighFive currently manages specialty dental practices in nine states, including Alabama, Florida, Georgia, Indiana, Kentucky, Mississippi, South Carolina, Tennessee, and Texas, with near-term plans to enter new markets in both oral surgery and endodontics.

Chief Executive Officer Chad Trull, the Board of Managers, and the executive team will continue to lead the business. HighFive’s doctor partners and executive team will also maintain majority ownership of the company. Chad Trull said: “I want to thank our doctor partners and the rest of the HighFive homebase team for the outstanding work we’ve accomplished together as we create a new option for the specialty dental space. The growth partnership with NVP further strengthens HighFive’s ability to support industry-leading specialists in their goal to provide the highest quality patient care. NVP shares our collective belief that high-quality patient care starts with supporting the best doctor partners and teams across the country and has an established track record of building leading brands and businesses.”

Houlihan Lokey served as the exclusive placement agent and financial advisor to HighFive, assisting in arranging, structuring, and negotiating concurrent debt and equity financings on behalf of the company. The financings highlight Houlihan Lokey’s success and momentum in simultaneously raising debt and equity capital for growth-stage companies against a backdrop of market volatility. Houlihan Lokey was able to drive exceptional results for the company, including securing significant incremental debt capacity to accelerate the company’s acquisition and growth strategy.

Houlihan Lokey’s Capital Markets Group is one of the largest providers of private capital solutions in the world, raising approximately $26 billion in capital and advising on an additional $9 billion across more than 250 transactions over the past two fiscal years. This transaction represents the 20th financing for Houlihan Lokey’s leading multi-site healthcare financing franchise over the past few years.

Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the world. In 2022, the group closed 37 transactions and was ranked by Refinitiv as the No. 1 advisor for U.S. and global healthcare M&A transactions under $1 billion. This transaction builds on Houlihan Lokey’s leading track record in the dental sector specifically, having advised on more than 50 transactions.