KKR Acquires Majority Ownership Stake in HealthCare Royalty Partners

Strategic Insights -

KKR & Co. Inc. has strengthened its presence in the biopharma industry by acquiring a majority ownership stake in HealthCare Royalty Partners (HCRx), a leading biopharma royalty acquisition company. Founded in 2006, HCRx has a strong track record of investing in commercial-stage and near-commercial-stage biopharmaceutical assets, with a portfolio spanning over 10 therapeutic areas and 55 products. The acquisition will enable KKR to expand its life sciences capabilities and provide comprehensive solutions across the healthcare spectrum.

Key Takeaways:

  • KKR has acquired a majority ownership stake in HealthCare Royalty Partners (HCRx), a leading biopharma royalty acquisition company.
  • HCRx was founded in 2006 and has a strong track record of investing in commercial-stage and near-commercial-stage biopharmaceutical assets.
  • The firm has committed over $7 billion in capital and manages approximately $3 billion in assets.
  • HCRx's expertise in royalty monetizations, private debt, and corporate financing solutions presents significant opportunity in the biopharma royalties market.
  • Clarke Futch, Chairman and CEO of HCRx, will continue to lead the team and maintain a substantial minority interest in the company.
  • The HCRx team will collaborate closely with KKR's health care team to provide financing solutions across the biopharma sector.
  • KKR has invested over $20 billion of equity capital in the healthcare sector since 2004.
  • The acquisition supports KKR's ability to provide comprehensive solutions across the health care spectrum and expands its life sciences capabilities.
  • HCRx has a differentiated platform that will be scaled with KKR's resources and expertise.

Statistics:

  • $7 billion: The total amount of capital committed by HCRx since inception.
  • $3 billion: The current assets managed by HCRx.
  • 10: The number of therapeutic areas covered by HCRx's portfolio.
  • 55: The number of products in HCRx's portfolio.
  • $20 billion: The amount of equity capital invested by KKR in the healthcare sector since 2004.

Sources:

  • HealthCare Royalty Partners (HCRx)
  • KKR & Co. Inc.