One of the largest US private equity firms, KKR, has finally closed its Health Care Strategic Growth Fund (HCSG). Through the fund, $1.45bn has been dedicated to enabling health care growth equity investment opportunities in the Americas.
The firm has been behind a number of healthcare investments since 2014 within biopharma, medical devices and healthcare IT. Its healthcare portfolio encompasses businesses such as Cohera Medical, Coherus BioSciences, AcuFocus, EBB Therapeutics and many more.
KKR will also invest over $260mn of capital, alongside external investors through its balance sheet and employee commitments. Additionally, the firm has deployed approximately $12bn globally in the health care space across private markets.
“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,” explained Ali Satvat, KKR Member and Head of KKR’s Health Care Strategic Growth investing efforts.
“These dynamics have created a significant market opportunity and an unmet need for strategic growth capital.”
“We’re interested in areas such as biopharma, which scares certain investors but can offer great opportunities if you choose the right asset, financing model and management team,” Satvat informed Bloomberg.
“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,” added Alisa Wood, Member and Head of KKR’s Private Market Products Group.
“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.”
HCSG aims to generate strong returns for investors by investing in health care-related companies advancing innovative products or services. In particular, HCSG expects to make equity investments of up to $100mn and focuses on themes such as clinical and technological innovation, cost containment, and consolidation of therapeutic offerings or care providers.