KKR has closed a $4 billion fund geared toward well being care funding, primarily in North America and Europe.
The brand new fund, KKR Well being Care Strategic Progress Fund II, is supposed to function a successor to KKR’s Well being Care Strategic Progress Fund, which held its remaining closing in 2017 with $1.45 billion in dedicated capital.
The fund is aimed on the biopharmaceutical, medical machine, well being care providers, life science instruments and diagnostics and well being care info expertise sub-sectors, and in line with KKR it can put money into “revolutionary well being care corporations with confirmed services and products which are looking for a companion to commercialize and scale.”
Whereas the worldwide funding firm has holdings throughout various totally different industries, KKR has joined forces with senior housing operators previously, together with because the capital companion of Waltham, Massachusetts-based Benchmark. KKR additionally was concerned in Dawn Senior Dwelling’s transfer from a public to a privately held firm in 2013.
Buyers backing the brand new fund embrace public pension plans, sovereign wealth funds, insurance coverage corporations, monetary establishments, endowments, non-public wealth and monetary expertise platforms, household workplaces and sure people with excessive internet price. KKR can also be investing about $500 million of capital into the fund.
“Constructing on the sturdy momentum and tangible outcomes that now we have achieved to date by means of HCSG I, we look ahead to persevering with to companion with best-in-class well being care companies to carry these much-needed services and products to market, mentioned KKR Associate and Head of Personal Market Methods Group Alisa Amarosa Wooden in a press launch.
KKR closed an identical fund centered on U.S. markets totaling $4.3 billion solely a handful of months in the past.The corporate has invested roughly $18 billion throughout the well being care sector since 2004.
Quite a few different corporations with involvement in senior dwelling have closed on giant funds in current months, together with Bain Capital, which closed on a $3 billion fund in December; Harrison Road, which closed on a $2 billion fund in October; and Kayne Anderson Capital Advisers’ $2.75 billion fund, which closed final month.
Personal fairness is prone to be the most important purchaser of senior dwelling property in 2022, in line with 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 non-public fairness, regional operators have been predicted to the second-most energetic consumers in 2022, garnering 19% of responses.