KKR Expands Healthcare Presence with Acquisition of HealthCare Royalty Partners

KKR has acquired a majority stake in HealthCare Royalty Partners, a business that acquires pharmaceutical royalty streams. The deal is a bet that financing needs from drug companies will continue to rise, prompting them to strike royalty deals. HCRx has about $3 billion in assets under management and will become part of KKR once the deal is complete.

NEW YORK—(BUSINESS WIRE)—KKR & Co. Inc., a leading global investment firm, has announced a strategic acquisition of a majority ownership stake in HealthCare Royalty Partners (HCRx). The move aims to enhance KKR's capabilities in biopharma royalty and credit investing while expanding its footprint in the life sciences ecosystem [1].

Founded in 2006, HCRx is a leading biopharma royalty acquisition company with 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 currently manages approximately $3 billion in assets, spanning over 10 therapeutic areas and 55 products [1].

KKR's acquisition of HCRx is a strategic move to capitalize on the growing demand for biopharma royalties. As the biopharma industry matures, companies are increasingly seeking partners that can provide a range of capital to meet their financing needs. The acquisition will enable KKR to offer comprehensive solutions across the healthcare spectrum and expand its life sciences capabilities [1].

As part of the transaction, HCRx Chairman and CEO Clarke Futch will continue to lead the firm and maintain an ongoing substantial minority interest. HCRx's team will collaborate closely with KKR's health care team to provide financing solutions across the biopharma sector [1].

"Joining forces with KKR marks a significant milestone for HCRx. We share a common vision of supporting the growth and innovation of the biopharma industry," said Mr. Futch. "With KKR’s resources, expertise, and similar approach to partnership, we are well positioned to scale our platform, more comprehensively serve the landscape of biopharma companies, and continue delivering value to our stakeholders" [1].

KKR has a long track record of supporting healthcare companies globally, having invested more than $20 billion of equity capital in the sector since 2004. The firm's existing portfolio of life sciences companies includes BridgeBio Pharma, Dawn Bio, Immedica Pharma, and Treeline Biosciences, among others [1].

TD Securities served as the exclusive financial advisor to HCRx [1].

References:
[1] https://www.businesswire.com/news/home/20250730161531/en/KKR-Announces-Strategic-Acquisition-of-HealthCare-Royalty-Partners-Expanding-the-Firms-Health-Care-Franchise-and-Enhancing-its-Life-Sciences-Strategy