Investment accelerates expansion of cost-effective, high-quality dental and oral surgery access for pediatric and special-needs patients
Great Hill acquires majority stake from TPG's The Rise Fund
Great Hill Partners (“Great Hill”), a private equity firm that invests in high-growth, disruptive companies, today announced that it has acquired a majority interest in Blue Cloud Pediatric Surgery Centers (“Blue Cloud” or “the Company”), the largest operator of pediatric ambulatory surgery centers (ASCs) focused on dental and oral surgery in the United States from The Rise Fund, the multi-sector strategy of TPG’s global impact investing platform. Terms of the transaction were not disclosed.
Founded in 2011, Blue Cloud was built on three pillars: expanding access to care, exemplifying safety and quality, and reducing costs to patients and payors – principles that remain the motivation behind everything Blue Cloud does to this day. Since the opening of its first centers in Texas, Blue Cloud now operates 32 fully accredited facilities across twelve states and sees more than 60,000 pediatric and special-needs patients each year, while acting as a trusted independent referral partner for dentists.
“Great Hill’s track record of scaling innovative healthcare platforms makes them the ideal partner for our next chapter,” said Devin Larsen, Chief Executive Officer of Blue Cloud. “Their collaborative approach to working with management teams, combined with their deep growth resources and sector expertise, will be instrumental as we accelerate center expansion and deepen partnerships with payors and providers. Together, we will ensure that underserved pediatric and special-needs populations receive the care they deserve in the safest, most cost-effective setting.”
Craig Byrnes, Managing Director at Great Hill, added, “Blue Cloud addresses a critical gap in the U.S. healthcare system: affordable, high-quality dental and oral surgery for vulnerable populations. We’re thrilled to support Devin and his exceptional management team as they expand Blue Cloud’s national footprint and advance its mission.”
In connection with the transaction, Craig Byrnes and Mark Taber, Managing Directors at Great Hill, and Michael Noel, Vice President at Great Hill, will join Blue Cloud’s Board of Directors. They will serve alongside CEO Devin Larsen and independent directors Dr. Stacey Berner, an orthopedic surgeon and former CEO of SurgCenter Development, and Darin Gordon, former Medicaid Director at TennCare.
The Rise Fund first partnered with Blue Cloud in 2021 to support the Company’s expansion. Tom Verghese, Business Unit Partner at The Rise Funds, commented, “In line with The Rise Funds’ mission to increase access to healthcare for underserved populations, we doubled Blue Cloud’s footprint during our ownership period. Through Devin’s leadership, we solidified the Company as the leading operator of pediatric dental ASCs in the US, improving clinical outcomes for thousands of patients who would have otherwise forgone needed care. The Company remains well-positioned for continued growth and success.”
Advisors
Evercore served as exclusive financial advisor to Blue Cloud; Houlihan Lokey served as exclusive financial advisor to Great Hill. Goodwin Procter LLP acted as legal counsel to Great Hill, while Kirkland & Ellis LLP advised Blue Cloud.
About Blue Cloud Pediatric Surgery Centers
Founded in 2011, Blue Cloud is the largest operator of pediatric dental ambulatory surgery centers in the US. The company partners with dentists, payors, and health systems to deliver safe, high-quality dental surgery under general anesthesia for pediatric and special-needs patients – providing a cost-effective alternative to hospital operating rooms while expanding access to care. For more information, visit www.bluecloudpsc.com.
About Great Hill Partners
Founded in 1998, Great Hill Partners is a private equity firm targeting investments of $100 million to $500 million in high-growth companies across the software, financial services, healthcare, consumer, and business services sectors. With offices in Boston and London, Great Hill has raised over $12 billion of commitments and invested in more than 100 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. Great Hill has been recognized for its industry leadership, being ranked in the top five of HEC Paris-Dow Jones' Mid-Market and Large Buyout Performance Ranking lists from 2021-2024. For more information, including a list of all Great Hill investments, visit www.greathillpartners.com.
About The Rise Funds
The Rise Funds are a core pillar of TPG's global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on building and scaling solutions to the world’s most complex challenges. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and decarbonization, education, financial inclusion, healthcare, and impact technology.
TPG’s Impact Platorm is the world’s largest of its kind, managing approximately $29 billion in assets across a family of funds that pursue non-concessionary returns and social and environmental impact at scale through growth equity, private equity, and infrastructure investing strategies.
For more information, visit www.tpg.com/platforms/impact/the-rise-funds.
