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Thurston Group in Talks to Raise Around $700M in Private Debt to Combine 3 Dental Platform Companies
Private equity firm Thurston Group is in the process of lining up about $700 million in debt financing from private lenders to support the combination of its three dental platform portfolio companies, according to sources.
The potential debt financing will back the sponsor’s merger of SGA Dental Partners, Gen4 Dental Partners and Modis Dental Partners. The combined EBITDA of the three companies is estimated to be more than $100 million, according to industry sources.
Man Varagon and Overland Advantage, the business development company formed by the partnership between Centerbridge and Wells Fargo, are among the direct lenders in discussions to provide the debt financing, with Man Varagon expected to lead the small group, said one source.
The debt package is expected to be priced in the mid-SOFR+500 bps range, said the same source.
Richmond Hill, Ga.-based SGA provides support services to dental practices in the Southeastern United States. Thurston formed SGA in 2022 through its merger of Dental Partners of Southwest Georgia, Garner Dental Group and South Georgia Dental Management.
In July 2024, SGA secured a $350 million credit facility to support its expansion, according to a news release. Overland Advantage, Man Varagon and Jefferies were the joint lead arrangers and bookrunners on the transaction. At the time, SGA had north of 125 general and specialty dentistry practices in its network.
Overland Advantage and Varagon Capital Group hold a portion of SGA’s S+550 bps first lien and delayed-draw term loans, which both mature in July 2029, according to Octus’ BDC Database.
Based in Tempe, Ariz., Gen4 has more than 100 locations in 15 states, according to its LinkedIn page. Thurston launched Gen4 in 2021 by combining five practices in Arizona and Utah with a total of 15 locations.
Gen4 closed on a $315 million credit facility in May 2024, the proceeds of which were used to refinance debt and fund acquisitions, according to a press release. Man Varagon was the administrative agent, joint lead arranger and sole bookrunner on the transaction.
BDC holders of Gen4’s first lien debt include First Eagle Private Credit Fund and FS Specialty Lending Fund, according to Octus’ BDC Database. The company’s loans are priced at S+575 bps and S+550 bps and are set to expire in May 2030, according to the same database.
Modis, which was launched by Thurston in 2023, is a platform of implant-oriented dental practices based in Franklin, Tenn. Saratoga Investment Corp. is a lender to Modis via the company’s first lien delayed-draw term loans due April 2028, which are both priced at S+937 bps, according to Octus’ BDC Database.
An analysis on private lenders’ exposure to dental practices can be read on Octus HERE.
Recent transactions in the dental space include KKR-backed Heartland Dental’s purchase of Smile Design Dentistry in September 2025. While terms of the transaction were undisclosed, Octus reported that the deal valued the company off a low double-digit EBITDA multiple.
Man Varagon and Gen4 declined to comment. Representatives for Thurston, Overland Advantage, SGA and Modis did not immediately respond to requests for comment.
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