KKR Closes $4B Fund Aimed at Health Care Investments

KKR has closed a $4 billion fund aimed at health care investment, primarily in North America and Europe.

The new fund, KKR Health Care Strategic Growth Fund II, is meant to serve as a successor to KKR’s Health Care Strategic Growth Fund, which held its final closing in 2017 with $1.45 billion in committed capital. 

The fund is aimed at the biopharmaceutical, medical device, health care services, life science tools and diagnostics and health care information technology sub-sectors, and according to KKR it will invest in “innovative health care companies with proven products and services that are seeking a partner to commercialize and scale.”

While the global investment company has holdings across a number of different industries, KKR has joined forces with senior housing operators in the past, including as the capital partner of Waltham, Massachusetts-based Benchmark. KKR also was involved in Sunrise Senior Living’s move from a public to a privately held company in 2013.

Investors backing the new fund include public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, private wealth and financial technology platforms, family offices and certain individuals with high net worth. KKR is also investing about $500 million of capital into the fund.

“Building on the robust momentum and tangible results that we have achieved thus far through HCSG I, we look forward to continuing to partner with best-in-class health care businesses to bring these much-needed products and services to market, said KKR Partner and Head of Private Market Strategies Group Alisa Amarosa Wood in a press release.

KKR closed a similar fund centered on U.S. markets totaling $4.3 billion only a handful of months ago.The company has invested approximately $18 billion across the health care sector since 2004.

Numerous other firms with involvement in senior living have closed on large funds in recent months, including Bain Capital, which closed on a $3 billion fund in December; Harrison Street, which closed on a $2 billion fund in October; and Kayne Anderson Capital Advisers’ $2.75 billion fund, which closed last month.

Private equity is likely to be the biggest buyer of senior living assets in 2022, according to 36% of respondents to the 2022 SHN/Lument Senior Housing Outlook Survey Report. About 350 SHN subscribers responded to the survey in late 2021.

Following private equity, regional operators were predicted to the second-most active buyers in 2022, garnering 19% of responses.

The post KKR Closes $4B Fund Aimed at Health Care Investments appeared first on Senior Housing News.

Source: For the full article please visit Senior Housing News