KKR, a global investment firm, has announced the recapitalization of DentalXChange (DXC), a leading provider of revenue cycle management (RCM) solutions for the U.S. dental market. This transaction also marks the successful exit of Bregal Sagemount from its investment in DXC.
For over three decades, DXC has served as a critical technology partner within the dental ecosystem, facilitating more than two billion transactions annually. The company’s comprehensive product suite and collaboration with payers, providers, and practice management system partners have significantly improved efficiencies in dental RCM, with further acceleration anticipated.
Hunter Craig, Managing Director at KKR, stated, “We seek opportunities where we can serve as differentiated partners with management teams to build world-class businesses that can positively impact the healthcare system. We have long admired the important role that DXC plays in the dental value chain, with its robust network and best-in-class solution set.” Alex Ward, Director at KKR, added, “Customers consistently view DXC as a collaborative and innovative business partner, and we look forward to helping the Company further expand its capabilities and streamline operations for all stakeholders.”
Paul Kaiser, CEO of DentalXChange, commented, “KKR’s deep expertise across the dental landscape, experience with technology-led innovation, and extensive network of key industry partners will meaningfully accelerate DXC’s next phase of growth. We look forward to expanding our use of automation and AI to reduce administrative complexity, enhance provider workflows, and create a seamless payer experience.”
Blair Greenberg, Partner at Bregal Sagemount, remarked, “It has been a privilege to partner with the DXC team and support the Company’s growth through key investments in technology and talent.” Phil Yates, Partner at Bregal Sagemount, added, “We are proud of what we accomplished together and wish the team continued success in this next phase of growth.”
DentalXChange will maintain its current leadership team, led by CEO Paul Kaiser. As part of the recapitalization, KKR will support DXC in establishing a broad-based equity ownership program, providing equity to all employees to enable their participation in growth and value creation. This strategy is based on the belief that team member engagement through ownership drives stronger companies. Since 2011, 70 KKR portfolio companies have collectively awarded billions of dollars in total equity value to nearly 170,000 non-senior management employees.
KKR’s investment in DentalXChange is made through its Ascendant Fund, part of KKR’s Americas Private Equity platform. TripleTree served as financial advisor to DentalXChange, with Goodwin Procter LLP providing legal counsel to Bregal Sagemount. William Blair served as exclusive financial advisor and Kirkland & Ellis LLP as legal advisor to KKR.
DentalXChange, established in 1989, focuses on modernizing dental claims and RCM solutions. Headquartered in Irvine, California, it supports approximately 200,000 dental providers and connects to nearly 1,400 payer plans. Through its clearinghouse, modern APIs, and secure Web portals, DentalXChange processes over 1 billion EDI transactions, including more than 300 million dental claims annually.
KKR is a global investment firm offering alternative asset management, capital markets, and insurance solutions. It invests across private equity, credit, and real assets. Bregal Sagemount is a growth-focused private capital firm with over $7.5 billion in cumulative capital, providing flexible capital and strategic assistance to companies in high-growth sectors, with offices in New York, Palo Alto, and Dallas.
