SCHEDULE: King Street Capital Discloses 7.2% Stake in Surgery Partners

King Street Capital Management and its affiliates have reported a 7.2% beneficial ownership stake in Surgery Partners, Inc., holding 9,339,930 shares of common stock.

Summary

• King Street Capital Management, L.P., King Street Capital Management GP, L.L.C., and Brian J. Higgins (collectively, the "Reporting Persons") have jointly filed a Schedule 13G.
• The Reporting Persons beneficially own an aggregate of 9,339,930 shares of common stock of Surgery Partners, Inc.
• This ownership represents 7.2% of the company's outstanding common stock.
• The percentage is calculated based on 129,341,779 shares of common stock outstanding as of November 3, 2025, as reported in Surgery Partners' Form 10-Q for the quarter ended September 30, 2025.
• King Street Capital Management, L.P. acts as the investment manager for various fund entities and has shared voting and dispositive power over the reported shares.
• The securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 7

Explanation: The disclosure of a significant stake by a reputable investment firm like King Street Capital Management is generally viewed as a positive signal, indicating investor confidence in the company's value and future prospects, without suggesting any immediate negative implications or activist intentions.

Positives

• A significant stake (7.2%) by an institutional investor like King Street Capital Management can signal confidence in Surgery Partners' long-term prospects.
• The acquisition of shares in the ordinary course of business suggests a strategic investment rather than an activist play, potentially indicating stability.

Negatives

• NA

Risks

• NA

Future Outlook

NA

Industry Context

The healthcare sector, particularly surgical facilities, continues to attract institutional investment, reflecting ongoing demand for specialized medical services and potential for growth through efficiency and expanded access.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may instill greater confidence among existing shareholders and potentially attract new investors, as it signals a professional assessment of the company's value.
• Company Management: Management may view this as a vote of confidence in their strategy and operations, though it also means increased scrutiny from a large institutional holder.

Next Steps

• NA

Key Dates

Recommendation

The filing indicates a significant institutional investment by King Street Capital Management, which is generally a positive signal of confidence in Surgery Partners. However, a Schedule 13G filing primarily reports ownership and does not provide new financial performance data, strategic updates, or operational insights that would warrant a 'buy' or 'sell' recommendation based solely on this document. The 'hold' recommendation reflects the positive sentiment from institutional backing without sufficient new information to change a fundamental investment thesis.

Keywords

Surgery Partners, King Street Capital Management, Beneficial Ownership, Institutional Investment, Healthcare, Common Stock, SEC Filing, Schedule 13G