KKR Closes $1.45 Billion Health Care Strategic Growth Fund Back to Press Releases

KKR Closes $1.45 Billion Health Care Strategic Growth Fund

November 29, 2017

Aims to Back Innovative Growth Companies

MENLO PARK, Calif. & NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the final closing of KKR Health Care Strategic Growth Fund (including parallel vehicles, “HCSG” or the “Fund”), a $1.45 billion fund dedicated to health care growth equity investment opportunities in the Americas. KKR will be investing more than $265 million of capital in the Fund alongside external investors through KKR’s balance sheet and employee commitments.

“The health care sector has demonstrated strong fundamentals throughout multiple cycles,” said Ali Satvat, KKR Member and Head of KKR’s Health Care Strategic Growth investing efforts. “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.”

The Fund received strong backing from a diverse group of new and existing global investors, including public pensions, insurance companies, family offices, and high net worth individual investors. “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,” said Alisa Wood, Member and Head of KKR’s Private Market Products Group.

HCSG 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. In particular, HCSG expects to make equity investments of up to $100 million and focuses on themes such as clinical / 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,” said Jim Momtazee, KKR Member and Head of KKR’s Health Care investment team. “We believe that we can be a valuable partner to management teams running innovative, high-growth companies by leveraging this experience.”

KKR has deployed approximately $12 billion globally in the health care space across private markets. Beyond delivering financial capital, KKR helps companies grow by providing access to the firm’s operational expertise, global infrastructure, deep network, and resources from its more than 100 current portfolio companies worldwide. Over the last year, KKR has executed a number of transactions as part of the firm’s health care growth equity strategy, including Ebb Therapeutics (formerly known as Cerêve), Slayback Pharma, and Ajax Health.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic manager partnerships, hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside its partners’ capital and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

KKR
Kristi Huller or Cara Kleiman Major, 212-750-8300
media@kkr.com

Source: KKR


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Miles Radcliffe-Trenner
Julia Kosygina
Telephone: +1 (212) 750-8300

Email: media@kkr.com

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Wei Jun Ong
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This presentation contains certain forward-looking statements pertaining to KKR & Co. Inc. and its consolidated subsidiaries (collectively “KKR”), including certain investment funds, vehicles and accounts that are managed by KKR (each, a “fund”). Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on KKR’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to, assets under management, fee paying assets under management, after-tax distributable earnings, capital invested, syndicated capital, uncalled commitments, cash and short-term investments, fee related earnings, fee and yield segment EBITDA, core interest expense and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: whether KKR realizes all or any of the anticipated benefits from converting to a corporation and the timing of realizing such benefits; whether there are increased or unforeseen costs associated with the conversion, including any adverse change in tax law; the volatility of the capital markets; the general volatility of the capital markets; failure to realize the benefits of or changes in KKR’s business strategies including the ability to realize the anticipated synergies from acquisitions or strategic partnerships or other transactions; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR’s competition. All forward-looking statements speak only as of the date they are made. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long-term and financial results are subject to significant volatility.

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