KKR Raises $1.45B For New Healthcare-Focused Growth Fund

Nov 30 2017 | 7:36pm ET

Global alternative asset manager KKR has raised $1.45 billion for latest healthcare-focused buyout fund.

The new fund, named KKR Health Care Strategic Growth Fund, is dedicated to health care growth equity investment opportunities in the Americas, the company said in a statement. It aims to generate strong returns for investors by investing in health care-related companies advancing innovative products or services and led by high-quality management teams. Equity investments will be up to $100 million and on themes such as clinical/technological innovation, cost containment, and consolidation of therapeutic offerings or care providers.

KKR will be investing more than $265 million of capital in the new vehicle alongside external investors through KKR’s balance sheet and employee commitments. Limited partners are a diverse group of new and existing global investors, including public pensions, insurance companies, family offices, and high net worth individual investors.

“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,” said Ali Satvat, head of KKR’s Health Care Strategic Growth investing efforts, in the statement. “These dynamics have created a significant market opportunity and an unmet need for strategic growth capital.”

Founded in 1976, KKR has deployed approximately $12 billion globally in the health care space across private markets. The company as a whole manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic manager partnerships, hedge funds. The company managed approximately $153 billion as of September 30, 2017.

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