KKR seals 1.45 billion dollars for health deals: Report

New York: KKR & Co. closed on a $1.45 billion inaugural fund targeting growth-stage healthcare companies, solidifying yet another strategy for expanding beyond big-check deals.

KKR’s fund, which included a $265 million commitment from the firm and its employees, has a flexible mandate to invest across health-care businesses such as diagnostics, medical devices, and care providers. While KKR plans to avoid early-stage companies subject to binary outcomes -- a drugmaker whose future is made or broken based on one clinical trial, for example -- it won’t be afraid to take on innovation risk when the right structures are in place, Satvat said.

Biopharma Opportunity

“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 said.

Some of KKR’s private equity peers also see opportunities in growth-stage health-care deals. Bain Capital closed on $720 million in May to pursue life-sciences investments, including high-growth companies. TPG’s growth funds have backed several health-care businesses.