Apollo Leads £600 Million Private Credit Deal to Back Bridgepoint’s Mydentist Buyout

Strategic Rationale for Bridgepoint

Bridgepoint’s acquisition aims to expand Mydentist’s market dominance through digital transformation and potential bolt-on acquisitions. The private equity firm has prior experience in dental care, having previously owned Oasis Dental Care before selling it to Bupa in 2017. Mydentist’s management team, led by CEO Nilesh Pandya, will remain in place, ensuring continuity as the business pursues growth initiatives such as intra-oral scanner adoption and clinician recruitment[17][18][19].

Apollo’s Private Credit Strategy

Apollo’s involvement highlights its aggressive expansion in the private credit market, where it has established partnerships with major banks like Citigroup and JPMorgan Chase to syndicate debt at scale. The firm’s $25 billion direct lending program with Citi, announced in 2024, exemplifies its capacity to originate large corporate and sponsor-backed deals[4][5]. This transaction follows Apollo’s recent participation in Boeing’s Jeppesen unit sale financing, demonstrating its ability to secure early-stage involvement in high-profile LBOs[5].

Mydentist’s Market Position

Mydentist holds a 5% market share in the UK dental sector, offering tiered services ranging from NHS-funded care to premium private treatments. Under Palamon’s ownership since 2021, the company divested non-core assets like DD Group to focus on core operations, achieving a 3x return for investors[18][19]. The business’s digital infrastructure investments and practice network modernization position it for further growth under Bridgepoint’s stewardship.

Private Credit Market Context

The deal aligns with broader trends in private credit, where non-bank lenders increasingly fill capital gaps left by traditional banks. Apollo’s collaboration with Wall Street firms to trade private credit securities – including a recent initiative with JPMorgan and Goldman Sachs – has enhanced liquidity in the secondary market, enabling larger deal sizes[1][2][13]. The UK dental sector’s stable demand and fragmented landscape make it an attractive target for private equity, particularly as digital health innovations reshape patient care delivery.

Challenges and Risks

While Mydentist’s scale offers operational leverage, the UK dental market faces regulatory scrutiny and workforce challenges. Private credit investors must navigate these risks while balancing returns. Apollo’s rigorous underwriting and sector expertise mitigate some concerns, though macroeconomic pressures could impact debt servicing capacity.

Conclusion and Implications

Apollo’s leadership in this transaction reinforces its position as a dominant force in private credit, leveraging partnerships and scale to execute complex financings. For Bridgepoint, the deal represents a strategic entry into a resilient healthcare subsector with clear growth pathways. As private credit continues to displace traditional bank lending, Apollo’s ability to structure innovative debt solutions will remain pivotal in shaping the M&A landscape.