Morgan Stanley Private Credit Leads Strategic Growth Capital Investment In Guardian Dentistry Partners

Rhea-AI Summary

Morgan Stanley Private Credit led a growth capital investment in Guardian Dentistry Partners, along with Prudential Private Capital. Guardian Dentistry Partners is a dental partnership network aiming to provide support services and growth opportunities for dentists. With over 160 locations in 11 states, GDP's unique structure allows doctors to retain autonomy while rolling over equity into the management company. The funding will help GDP expand its network and enhance services.

Positive

• Growth capital investment from Morgan Stanley Private Credit and Prudential Private Capital will accelerate Guardian Dentistry Partners' expansion and geographical reach.

• The unique operating model of Guardian Dentistry Partners allows doctors to maintain autonomy in their practices while promoting alignment and growth outcomes.

• The structured solution combining debt and equity securities provided by MSPC helps Guardian Dentistry Partners achieve its financial and strategic objectives.

Negative

• None.

Financing aimed at accelerating growth and expanding geographical reach

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Private Credit (“MSPC”) announced today that several of its investment funds have led a growth capital investment into Guardian Dentistry Partners (“GDP” or “Guardian”). Prudential Private Capital also participated in the transaction.

GDP is a dental partnership network founded in 2018 by a group of dentists with the goal of providing world-class support services and growth opportunities for its dentist partners through a differentiated operating model. GDP has grown to over 160 locations operating across 11 states. Led by a unique team of operational leaders and doctor partners, GDP’s alignment structure allows doctors to retain autonomy in their practices while also rolling over equity into the non-clinical management company creating superior alignment and growth outcomes as shoulder-to-shoulder partners.

Commenting on the financing, Ashwin Krishnan, Managing Director and Co-Head of North America Private Credit, said, “Working with ownership and management, we were able to deliver a structured solution combining both debt and equity securities, helping Guardian achieve its near-term financial and strategic goals.”

Danny Kawas, Founder and CEO of Guardian Dentistry Partners, added: “Today's significant financing marks a pivotal moment for Guardian Dentistry Partners. It underscores our commitment to fostering a partnership model that aligns doctor interests to create timeless practices that generate industry-leading organic growth. This collaboration with Morgan Stanley Private Credit and Prudential Private Capital propels us forward, enabling us to expand our network and enrich the resources that elevate our practices. Our aim is not just to extend our reach but to ensure that each of our practices makes a lasting difference in the communities they serve. This funding empowers us to continue setting new standards of excellence in dental care, ensuring that our growth translates into enhanced service and care for patients across all our locations.”

Morgan Stanley Private Credit’s investment in GDP was led by Executive Directors Aleksandar Nikolic and James Morphis.

Moelis & Company LLC acted as exclusive placement agent in connection with the transaction.

About Guardian Dentistry Partners

Founded by a group of passionate dentists and a family office, Guardian Dentistry Partners is a premier Dental Partnership Network dedicated to providing world-class support services and growth opportunities for its network of dentist partners. Since 2018, Guardian has expanded rapidly and now supports dental partners in Alabama, D.C., Florida, Maryland, Michigan, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas and Virginia. Guardian’s mission is to help its dental partners and teams build the practices of their dreams. For more information, visit guardiandentistry.com.

About Morgan Stanley Private Credit

Morgan Stanley Private Credit, part of Morgan Stanley Investment Management, is a private credit platform focused on direct lending and opportunistic private credit investment in North America and Western Europe. The Morgan Stanley Private Credit team invests across the capital structure, including senior secured term loans, unitranche loans, junior debt, structured equity and common equity co-investments. For further information, please visit the website:morganstanley.com/im/private-credit

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $1.5 trillion in assets under management or supervision as of December 31, 2023. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Prudential Private Capital

For nearly 100 years, Prudential Private Capital (“PPC”) has been partnering with a wide range of corporations, sponsors, and institutions, enabling them to achieve their growth and funding goals. PPC is known for building enduring local partnerships based on a steady and patient commitment to our partners’ long-term capital needs. With regional teams in 15 offices around the world, PPC manages a portfolio of $101.5 billion for its partners (as of 12.31.23). For more information, please visit prudentialprivatecapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240430271895/en/

Media Relations Contacts:

Morgan Stanley: Alyson Barnes

(646) 995-8898

alyson.barnes@morganstanley.com

Source: Morgan Stanley Private Credit

FAQ

What investment was made in Guardian Dentistry Partners?

Morgan Stanley Private Credit led a growth capital investment in Guardian Dentistry Partners, along with Prudential Private Capital.

How many locations does Guardian Dentistry Partners operate in?

Guardian Dentistry Partners operates over 160 locations across 11 states.

Who is the CEO of Guardian Dentistry Partners?

Danny Kawas is the Founder and CEO of Guardian Dentistry Partners.

What benefits does the partnership model of Guardian Dentistry Partners offer?

The partnership model of Guardian Dentistry Partners allows doctors to maintain autonomy in their practices while rolling over equity into the management company, promoting alignment and growth outcomes.