VSS Capital Partners (“VSS”), a private investment firm investing in the business services, healthcare, education and information industries, is pleased to announce that its platform investment Endo1 Partners (“Endo1” or “the Company”) has secured $115 million in debt financing to support its growth trajectory and continued expansion as fast-growing Endodontic Partnership Organization (EPO).
Houston, Texas-headquartered Endo1 provides non-clinical administrative support for affiliated, independent endodontic practices across 10 states in the U.S. The new debt financing will further accelerate the continued growth of the platform and fund future partnerships in its existing and new geographies. Endo1’s robust back-office infrastructure capabilities provide accounting, billing, business development, human resources, IT, marketing and recruitment services allowing independent endodontic practices to focus on delivering patient care.
“Endo1’s growth trajectory reflects VSS’s proven expertise in transforming traditional, high-demand businesses in alignment with talented management teams and flexible capital,” said Jeffrey Stevenson, Managing Partner of VSS. “VSS’s structured capital investments enable our platform companies to accelerate growth, access new resources and expand their business into attractive markets.”
VSS, a lower mid-market focused buy-and-build veteran investor with well over a decade of experience developing fast-growing companies, invested in Endo1 in November 2019, working closely with company management team to establish a highly scalable platform and fast-growing network of independent endodontic specialists. To date, Endo1 has added 35 new practices to its network, with additional partnerships already in the pipeline.
VSS has a long tradition of partnering with lower mid-market businesses, providing strategic counsel on growth initiatives and working closely with management as a minority or majority investor.
Endo1’s continued progress as a portfolio company of VSS reflects the value the firm adds post-investment. It also comes at a time when many of America’s small businesses (“LMM”) are poised to realize the benefits of the $1.9 trillion economic stimulus and loosened restrictions placed on businesses during the pandemic.
“We are pleased to have found in VSS a strategic partner who truly understands the needs, challenges and potential of small businesses poised to grow but constrained by access to capital,” said Dr. Daryl Dudum and Dr. Matthew Haddad, Co-Founders and Co-Chief Executive Officers of Endo1 Partners. “We are committed to providing our current and prospective endodontist-partners with best-in-class administrative support services so they can focus on providing care that improves patients’ lives while being able to run their practices more efficiently.”
“VSS is excited about the opportunity to support Endo1’s plans to add 50 new locations to its network in 2021, which reflects the foundation we’ve established for the Company’s continued growth,” said Yash Kandoi, a Principal at VSS who lead VSS’ investment in Endo1. “We believe Endo1 is well positioned to meet what we expect will be an increased demand for endodontic procedures in the post-pandemic economy.”
The deal team on Endo1 included Victoria Durand, an Associate at VSS who focuses on the firm’s investments in healthcare services.
VSS has a long track record of partnering with talented management teams and founders of healthcare service companies to identify strategic acquisitions and drive operational improvements that build lasting value, including within physician practice management and behavioral health.
VSS Capital Partners (“VSS”), a private investment firm, invests in the business services, healthcare, education and information industries. Headquartered in New York, VSS provides capital for growth financing, recapitalizations, strategic acquisitions, and buyouts to lower middle market companies and management teams with the goal of building companies organically as well as through focused add-on acquisition programs. VSS makes privately negotiated investments across the capital structure and invests in situations requiring control or non-control equity, mezzanine securities, and structured equity securities. VSS has over three decades of experience, made investments in 88 portfolio companies, with over 350 add-on acquisitions, and manages $3.5 billion in aggregate committed capital across 7 funds. For more information, please visit: www.vss.com.
Endo1 is a leading provider of emergency and essential dental services, focused on high-quality endodontic treatments, with a multi-site, multi-service, scalable platform positioned for growth. Operating across the country, Endo1 Partners provides comprehensive business and operational support services to its endodontic practices. The Company partners with best-in-class endodontists across the country with the goal to greatly reduce their administrative burden, so they can spend more time at the heart of their practice—providing high quality dental care to patients. For more information, please visit: www.endo1partners.com.
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