VSS’s Endo1 secures USD115m in debt financing

VSS Capital Partners' (VSS) platform investment Endo1 Partners (Endo1) has secured USD115 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 US. 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,” says 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 realise the benefits of the USD1.9 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,” say 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,” says 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 behavioural health.