PE firm KKR closes $1.5B healthcare fund

November 30, 2017 By Fink Densford Leave a Comment

Private equity giant KKR (NYSE:KKR) this week announced the final closing of its $1.45 billion KKR Health Care Strategic Growth Fund, looking to invest the funds in healthcare growth equity investment opportunities in the America’s.

The fund will receive more than $265 million of capital from KKR itself, alongside external investors through KKR’s balance sheet and employee commitments.

“The health care sector has demonstrated strong fundamentals throughout multiple cycles. Significant advances in medical innovation have yielded new products and services for patients, while consolidation and novel approaches to care delivery have the potential to improve clinical outcomes and reduce associated costs. These dynamics have created a significant market opportunity and an unmet need for strategic growth capital. We look forward to working with high-growth companies in the health care space for which KKR can be a unique partner in helping them achieve scale,” KKR health care strategic growth investing head Ali Satvat said in a press release.

KKR touted that the fund had received “strong backing” from new and existing global investors including public pensions, insurance companies, family offices and high value individuals.

“We are pleased that our enthusiasm for the attractive health care growth opportunities that the Fund enables is shared among a diversified group of global investors. This interest in the space, along with our strong team and record in health care, has helped us significantly exceed our initial target for the fundraise,” KKR private market products group head Alisa Wood said in a prepared statement.

The fund is slated to make equity investments of up to $100 million with a focus on themes including clinical and technological innovation, cost containment and consolidation of therapeutic offerings or care providers.

“KKR’s health care investment team has been investing globally across the health care sector for more than 20 years, resulting in extensive industry experience, an established reputation within the space, and a strong track record of scaling health care-related companies. We believe that we can be a valuable partner to management teams running innovative, high-growth companies by leveraging this experience,” KKR healthcare investment team head Jim Momtazee said in prepared remarks.

In September, KKR invested another $235 million into EchoNous, the parent company of Signostics, for the second time in as many years.

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