Smile Partners USA Expands with Strategic Investment and Continued Growth

Smile Partners USA

DSO Spotlight

Smile Partners USA, has announced a strategic investment through a continuation fund managed by Silver Oak Services Partners LLC. This investment is anchored by commitments from funds managed by BlackRock Secondaries & Liquidity Solutions and Hollyport Capital, with additional backing from new and existing investors. This transaction reaffirms Smile Partners USA’s sustained success and commitment to a doctor-centric partnership model.

Strategic Investment and Growth Outlook

The new continuation fund underscores Silver Oak’s confidence in Smile Partners’ growth trajectory. The Silver Oak General Partnership reinvested its entire capital investment and proceeds from the transaction while committing additional new capital. The management team and doctor partners have retained a significant ownership stake, with unfunded capital commitments set to drive further expansion.

“We are very excited to announce the closing of this new continuation fund,” said Dan Gill, Managing Partner of Silver Oak. “This transaction allows us to continue our partnership with Smile Partners, providing liquidity to our investors and additional capital to support future growth. We appreciate the trust from our new institutional investors and look forward to the continued success of Smile Partners.”

“We are thankful for the ongoing support from Silver Oak, as well as our new investors in BlackRock and Hollyport Capital. This is a significant milestone for our doctor partners, 1,000+ employees, and management team. We remain committed to delivering best-in-class patient care across our communities.” Dave Gaspar, CEO of Smile Partners

Jefferies served as exclusive financial advisor for the transaction through the partnership of its Private Capital Advisory and Healthcare teams, with Kirkland & Ellis serving as Silver Oak’s legal counsel. Akin Gump acted as legal counsel for BlackRock and Hollyport Capital.

Proven Model for Success

Smile Partners has gained industry recognition, earning a spot on Group Dentistry Now’s Emerging Dental Groups to Watch in 2023. Its success is attributed to a regional density model, which establishes 40+ office footprints in target markets rather than spreading thinly across multiple regions.

The organization has built a robust doctor career path, enabling associates to become partners within five years if they do not join through affiliation. Since its inception, the growing dental group has consistently achieved over 90% doctor retention, driven by a strong clinical support network known as the “Smile Alliance Network,” or “SAN” to its networked partner practices, providing access to 170+ dentists and National Clinic Leadership Board. The average provider has 18+ years experience practicing.

Commitment to Community and Future Vision

Beyond its financial success, Smile Partners remains deeply committed to community involvement. The organization collaborates with local and national charities to raise awareness for key health issues, including Children’s Dental Health and Breast Cancer. Through its partnership with the PINK FUND, Smile Partners USA has raised an average of $50,000 annually to support families in need.

Looking ahead, Smile Partners USA is focused on expanding its market presence through high-quality private practice affiliations while prioritizing team retention. Unlike many DSOs, SPUSA emphasizes affiliations over de novo openings, ensuring that new practices align with its strong reputation and patient-centered approach.

As the industry continues to navigate economic pressures and staffing shortages, Smile Partners remains well-positioned for sustainable growth. By prioritizing strong doctor partnerships, exceptional patient care, and a strategic approach to expansion, the organization is set to drive long-term success while staying true to its core values.

A New Chapter of Expansion

Smile Partners USA

Smile Partners USA started in 1982 when Dr. Mark Bouchillon began Redwood Dental as a single office in Warren, MI. From there, he expanded to eight Redwood Dental practices across Metro Detroit. In July of 2017, Redwood Dental partnered with Silver Oak Services and recapitalized the business.

Smile Partners USA expanded and refocused on a regional density model that enables groups to have a 40+ office footprint in markets versus a few locations. In addition, they implemented a doctor career path that takes an associate to partner in five years if they didn’t join through affiliation.

In 2021, SPUSA entered the Chicago market, operating 14 locations throughout the metropolitan area. In addition, at that time, Smile Partners USA announced the acquisitions of multiple other general and specialty dentistry services practices in the Detroit and Atlanta metropolitan areas, adding an additional three locations.

In 2022, Smile Partners USA approached $150 million in revenue and projected over $200 million for 2023, demonstrating a compounded annual revenue growth rate of 57% from 2018 through 2022. Same-store revenue growth during this period was 6%, and the company plans to double its footprint over the next three years while maintaining a 75% year-over-year growth rate.

SPUSA supports an affiliated group of like-minded practices that while independently branded, share common visions & values. SPUSA’s network of practices are providers of general and specialty dental services in Michigan, Georgia, Illinois, Colorado, and Alabama. Since Silver Oak’s investment, SPUSA has completed over 47 affiliations, growing from eight practices in one market to 110 in five markets.

Key executives:
  • Mark Bouchillon, DDS, Co-Founder
  • Dave Gaspar, CEO
  • Shawn Lynch, CFO
  • Nathan Cox, CDO
  • Todd Gustke, CPO

dso people

Facebooktwitterlinkedinmail