HealthCare Royalty Partners' majority ownership has been obtained by KKR
KKR Acquires Majority Stake in HealthCare Royalty Partners (HCRx)
In a move that strengthens its presence in the biopharma royalties market and life sciences ecosystem, global investment firm KKR has acquired a majority stake in HealthCare Royalty Partners (HCRx). This strategic acquisition positions KKR to offer comprehensive financing solutions to biopharma companies, addressing their growing capital needs more effectively.
Based in Stamford, Connecticut, HCRx is a premier biopharma royalty acquisition company managing about $3 billion in assets across more than 10 therapeutic areas. With over $7 billion in capital commitments, the acquisition further strengthens KKR's position in the global healthcare sector.
Clarke Futch, HCRx's Chairman and CEO, will continue to lead the team and retain a minority interest. Futch expresses that joining forces with KKR marks a significant milestone for HCRx, positioning them to scale their platform and continue delivering value to stakeholders.
KKR was drawn to HCRx due to their long-standing relationship, market leadership in biopharma royalties, and the expertise of their leadership team. The HCRx team will work closely with KKR's healthcare team to provide a range of financing solutions, including royalty monetizations, private debt, and corporate financing.
Futch, along with Ali Satvat, Partner at KKR, states that the partnership shares a common vision of supporting the growth and innovation of the biopharma industry. Satvat adds that the HCRx acquisition supports KKR's ability to provide comprehensive solutions across the healthcare spectrum and expands their life sciences capabilities.
The biopharma royalties market represents a niche asset class with rising demand but remains undercapitalized relative to biopharma's overall capital needs, offering KKR significant growth potential. By integrating HCRx, KKR enhances its ability to offer diverse forms of capital across various stages of development, potentially accelerating innovation and development within the industry through improved funding access and portfolio diversification.
The expanded partnership leverages HCRx’s expertise and portfolio, which includes over 55 biopharma products. KKR’s resources and similar approach to partnership are expected to help HCRx more comprehensively serve the landscape of biopharma companies. KKR's life sciences portfolio includes companies like BridgeBio Pharma, Dawn Bio, Immedica Pharma, and Treeline Biosciences.
In summary, the acquisition broadens KKR’s investment platform in health care, strengthens its life sciences strategy, and enables it to provide differentiated, flexible capital solutions to biopharma companies. This strategic move is expected to accelerate innovation and development within the industry through improved funding access and portfolio diversification.
[1] Business Wire. (2022, September 15). KKR Acquires Majority Stake in HealthCare Royalty Partners (HCRx). Business Wire. https://www.businesswire.com/news/home/20220915005142/en/KKR-Acquires-Majority-Stake-in-HealthCare-Royalty-Partners-HCRx
[2] GlobeNewswire. (2022, September 15). KKR Acquires Majority Stake in HealthCare Royalty Partners (HCRx). GlobeNewswire. https://www.globenewswire.com/news-release/2022/09/15/2527802/0/en/KKR-Acquires-Majority-Stake-in-HealthCare-Royalty-Partners-HCRx.html
[3] PR Newswire. (2022, September 15). KKR Acquires Majority Stake in HealthCare Royalty Partners (HCRx). PR Newswire. https://www.prnewswire.com/news-releases/kkr-acquires-majority-stake-in-healthcare-royalty-partners-hcrx-301626774.html
[4] TD Securities served as the exclusive financial advisor to HCRx during the acquisition. The terms of the deal were not disclosed.
[5] KKR's life sciences portfolio is expected to benefit from the expertise and assets of HCRx, positioning KKR to capture more value within the life sciences sector by combining royalty-based investments with other credit and equity financing strategies.
The strategic acquisition of HealthCare Royalty Partners (HCRx) by KKR offers comprehensive financing solutions to biopharma companies, addressing their growing capital needs more effectively. With this acquisition, KKR can leverage HCRx's expertise and assets to capture more value within the life sciences sector by combining royalty-based investments with other credit and equity financing strategies.