The investment firm Intermediate Capital Group is in talks to take a stake in Oasis, the dentist chain that runs a network of 170 practices, The Times reports.
Duke Street, the buy-out firm, has been looking for several months to attract a new investor into Oasis, which it acquired just over two years ago for £125 million.
Talks have been held with a number of potential investors to raise an additional £25 million and it is hoped a deal will be wrapped up early in the new year.
The money raised from the stake sale will finance the continued expansion of Oasis, allowing it to buy smaller, privately owned dental practices.
By adding these to the existing structure, Oasis can extract cost savings and provide extra income for the dentists it brings into the business, it says.
This month, a consortium of firms led a £136 million deal to acquire Associated Dental Practices from the administrator of the company’s previous owner, the private-equity arm of Kaupthing, the failed Icelandic bank.