Harvest takes victory lap for Berkshire Partners’ Affordable Care, Ex-THL investor Laura Grattan to join first-timer Crosspoint, PE hiring on the up

Affordable Care goes to Harvest and Crosspoint Capital grows its roster.


We’ve got the scoop on a big dental deal today… Harvest Partners has won the highly anticipated auction for Berkshire Partners’ Affordable Care, the country’s largest dental services organization specializing in tooth replacement services, according to multiple sources familiar with the matter.

The deal, which has not yet closed, is valued at around $2.7 billion, some of the people said.

Harvest, prevailing over other large buyout funds in the Jefferies-run competitive process, is an experienced investor in the dental category. The New York private equity firm in July 2015 bought Dental Care Alliance, or DCA, one of the largest multi-branded dental support organizations in the US with 330 affiliated practices across 20 states.

The premium price for Affordable Care is a testament to private equity’s continued belief around the remaining growth opportunity and innovation to be had in the dental industry, sources told PE Hub.

As it relates to Affordable Care and those in the business of tooth replacement – specifically fixed, full-arch implants – there is a big push to get dentists to place implants better and faster, ultimately improving patient care, one person noted. Technology adoption – supporting digital workflows and 3D-printed dentures – is playing a big role in the industry’s evolution, the person added.

Affordable Care’s affiliated practices provide dentures, partial dentures and tooth extractions, and many offer implant-supported dentures and single tooth implants. Every practice has an on-site dental laboratory, allowing the practice to provide same-day dental services.

Read my full report on PE Hub.

In other brewing dental activity, US Oral Surgery Management, backed by RiverGlade Partners and Thurston Group, recently engaged Moelis to advise on a process, PE Hub wrote in May.

On the move: Another first-timer is building out an impressive bench, hubsters.
Seasoned software investor Laura Grattan will soon join the roster at Crosspoint Capital after more than 13 combined years at Thomas H. Lee Partners, sources familiar with the matter told PE Hub.

Grattan will focus on infrastructure software and cybersecurity software at Crosspoint, which recently closed its debut pool of $1.3 billion – representing one of the largest first-time tech funds ever raised.

Crosspoint was launched last year by veteran tech CEO Greg Clark and has already added big hitters like Ian Loring from Bain Capital, where he previously co-led technology investing.

Grattan spent the bulk of her time at THL on software more broadly, including in infrastructure software and select areas of application software. She moved from the tech vertical to the healthcare vertical in 2020, bringing her software experience to spearhead HCIT efforts during her last year at the firm.

Get all the deets in PE Hub’s full report.

Hiring!: Private equity firms are doubling down on hiring this year, while slightly bumping compensation for most investment professionals and paying top dollar for diverse talent, writes Milana Vinn.

As competition among private equity firms remains fierce, 2021 may very well beat 2019’s record year of hiring activity, indicates Heidrick and Struggles’s 2021 North American Private Equity Investment Professional Compensation Survey.

“Because there is so much capital flowing into the private equity space, and more funds, larger funds being raised, when our clients want to recruit people from one firm to another, they pay full market for those candidates,” Jonathan Goldstein, a regional managing partner at the firm’s Americas private equity practice, told PE Hub.

Read Milana’s full report here.

That’s it! As always, write to me at springle@buyoutsinsider.com with any tips, comments or feedback. Have a great week ahead!