Blackstone and KKR are poised to take control of Affordable Care, a dental‑services platform, after a restructuring that will erase roughly 70% of its debt. The move follows a March filing that valued the company at $2.7bn and signals a sharp hit to sponsor equity in a sector that relies on recurring revenue streams today.

Under the deal, lenders will receive a $75m new‑money loan to support operations after restructuring. Instruments junior to the senior loan—including existing equity and preferred shares—will be wiped out entirely, leaving only the senior debt held by Blackstone’s private‑credit vehicle for the next six months as the company pivots its service model and seeks growth avenues.

Affordable Care, which serves 425 dental practices across roughly 40 states, was valued at $2.7bn when Harvest Partners bought a stake in 2021. The full elimination of equity and preferred positions marks one of the most visible sponsor write‑offs in U.S. dental and medical roll‑ups, underscoring how quickly value can compress when operations falter today.

Blackstone’s private‑credit fund already marked the loan at 69.8 cents on the dollar at March’s close, while KKR’s fund saw a 9.9% drop in first‑quarter NAV, prompting a $300m infusion. This workout attracts attention as private‑credit vehicles face redemption pressure, highlighting the fragility of leveraged dental platforms in a tightening credit climate for investors and