LPDG Announces Strategic Investment

Lone Peak Dental Group Announces Strategic Investment from the BlackRock Impact Opportunities Fund

DENVER – January 31, 2024 – Lone Peak Dental Group (“Lone Peak” or the “Company”), a leading pediatric specialty dental support organization (DSO), today announced a strategic investment from the BlackRock Impact Opportunities Fund. Lone Peak will leverage the funding to continue to scale its clinic platform nationwide and pursue additional growth opportunities. The BlackRock Impact Opportunities Fund seeks to improve economic outcomes for undercapitalized communities while uncovering compelling investment opportunities for its clients.

Founded in 2003 by two pediatric dentists, Lone Peak is one of the largest pediatric focused DSOs in the United States, supporting the operation of 69 pediatric dental clinics across 13 states, with a differentiated ‘owner-dentist model’ that employs over 150 dentists and 81% bi-lingual staff across the platform. The Company operates in communities serving low-income children under Medicaid across the U.S., with over 40% of children in the country covered by Medicaid / CHIP[1].  The investment will assist Lone Peak in increasing patient access to routine, pediatric dental care for families in historically underserved communities.

Research shows that lack of pediatric dental care, including routine cleanings, is a main contributor to children missing school, with an average of 34 million hours lost each year because of unplanned (emergency) dental care[2]. In addition, children from lower income families are twice as likely to have untreated cavities[3].

“The Lone Peak team is excited to partner with the BlackRock Impact Opportunities Fund, who bring expertise to help us realize our growth potential while delivering quality care through our Kidsperience service model. Their commitment to improving outcomes for underserved communities and social responsibility aligns perfectly with our values. Together, we’re not just expanding access to dental care, but we’re building healthier communities,” said Lone Peak Dental Group CEO Ray Caruso.

“We are pleased to invest in Lone Peak Dental Group and support the company in increasing access to dental pediatric care in underserved communities.  Lone Peak’s strong fundamentals, successful track record of growth and mission-focused approach makes the company a compelling investment for our clients,” said Ladell Robbins, Head of BlackRock Impact Opportunities Fund.  “We look forward to partnering with Ray and Lone Peak’s management team to help extend Lone Peak’s footprint.”

As part of the transaction, Memorial Hermann Health System also invested in the Company alongside the BlackRock Impact Opportunities Fund.  Brightwood Capital and LBC Credit Partners provided financing for the transaction.

“Since our founding, serving overlooked and underserved communities has been central to our investing thesis,” said Scott Porter, Managing Director at Brightwood. “We are pleased to partner with the BlackRock Impact Opportunities Fund and help Lone Peak continue its growth and mission to provide quality dental care services to communities in need.”

About Lone Peak Dental Group

Lone Peak Dental Group, founded in 2003, is one of the largest pediatric specialty Dental Support Organization (DSO) in the United States, with 69 offices spanning 13 states. Dedicated to community-based dental care through a strategic approach of de novo establishments and affiliations, Lone Peak’s commitment extends beyond geographic boundaries, with several practices strategically situated to address the needs of underserved populations. Rooted in the belief that no patient should go untreated due to financial constraints, each Lone Peak Dental Group practice endeavors to uphold this mission, ensuring comprehensive oral healthcare for all. Learn more about our commitment to accessible dental services at https://www.lonepeakdentalgroup.com/.

About BlackRock Private Markets

BlackRock’s private markets platform serves investors seeking outperformance in infrastructure, private debt, private equity, real estate, and multi-alternatives solutions. We strive to bring our investors the highest quality opportunities by drawing upon our global footprint, superior execution capabilities, proprietary technology, and position as a preferred partner. As of December 31, 2023, BlackRock manages US$327 billion in liquid and illiquid alternative investments and commitments on behalf of clients worldwide.

About Brightwood Capital Advisors

Brightwood Capital Advisors, LLC is a private credit firm with a long-standing track record of investing in middle-market businesses. Brightwood specializes in providing senior debt capital primarily to U.S. businesses with $5-$75 million of EBITDA within five core industries: technology & telecommunications, healthcare, business services, transportation & logistics and franchising. Brightwood partners with non-sponsored businesses as well as private equity sponsors to provide customized financing solutions for directly originated investments.

Founded in 2010, Brightwood is a minority-owned firm with a team of over 50 employees who manage more than $5 billion of assets on behalf of its primarily institutional investor base. Brightwood is headquartered in New York City. For more information, please visit: https://brightwoodlp.com/.

About LBC Credit Partners

LBC Credit Partners provides middle market financing solutions supporting sponsored and non-sponsored transactions throughout the U.S. across a broad range of industries. With over $3.8 billion of capital commitments, we have provided in excess of $10.2 billion to over 323 issuers throughout our 18-year history.*  In December 2021, CIFC acquired LBC Credit Partners, expanding its alternative global credit platform into the private credit market. With the acquisition, CIFC currently manages over $41+ billion in assets and employs more than 200 professionals in the U.S. and Europe.*  To learn more, visit www.cifc.com or www.lbccredit.com.

LBC Offices: Philadelphia area (HQ), Chicago

LBC Originations Offices: Atlanta, Cleveland, Los Angeles

*Information as of December 31, 2023.

[1] https://www.medicaid.gov/medicaid/program-information/medicaid-and-chip-enrollment-data/report-highlights/index.html

[2] https://www.cdc.gov/oralhealth/fast-facts/index.html

[3] https://www.cdc.gov/healthyschools/npao/oralhealth.htm

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