HealthCare Royalty Partners' significant ownership is now controlled by KKR following a recent acquisition.
KKR Expands Biopharma Royalty Investing Capabilities with Acquisition of HealthCare Royalty Partners
Global investment firm KKR has announced a significant move in the biopharma sector with the acquisition of HealthCare Royalty Partners (HCRx), a leading biopharma royalty acquisition company based in Stamford, Connecticut.
The acquisition, which was facilitated by TD Securities serving as the exclusive financial advisor to HCRx, positions KKR to capitalize on the underpenetrated biopharma royalty market. This market currently makes up less than 5% of total biopharma capital needs, offering companies a way to monetize future royalties to fund R&D without diluting equity or taking on traditional debt.
HCRx, founded in 2006 and managing around $3 billion in assets with over $7 billion committed capital, specializes in commercial-stage and near-commercial-stage biopharma assets across more than 10 therapeutic areas.
The acquisition aligns with KKR's broader Asset-Based Finance strategy, leveraging HCRx's proprietary deal flow and royalty streams to diversify and stabilize its investment portfolio across multiple sectors with stable, long-duration cash flows.
Clarke Futch, HCRx’s CEO, will continue leading the team as they collaborate closely with KKR’s healthcare group to deliver comprehensive financing solutions for biopharma companies. This collaboration aims to further reinforce KKR's life sciences ecosystem.
This strategic move expands KKR's healthcare franchise, deepening its presence in the growing biopharma royalty asset class and enhancing its ability to address evolving capital needs in the life sciences sector.
KKR's investment in HCRx is motivated by the growing demand for biopharma royalties as an asset class. The firm has been active in the global healthcare sector, investing over $20 billion since 2004. Its life sciences portfolio includes companies like BridgeBio Pharma, Dawn Bio, Immedica Pharma, and Treeline Biosciences.
Ali Satvat, Partner at KKR, states that the HCRx acquisition supports KKR’s ability to provide comprehensive solutions across the healthcare spectrum and expands their life sciences capabilities. The acquisition also positions KKR to compete with major players like Royalty Pharma and Blackstone by expanding origination capabilities particularly in healthcare and enhancing access to insurance capital through KKR’s Global Atlantic affiliate, which targets yield-seeking investments.
For Clarke Futch, joining forces with KKR marks a significant milestone for HCRx. He reiterates that HCRx's differentiated platform will be beneficial under KKR’s management. The acquisition, he believes, will enable HCRx to scale its platform, more comprehensively serve the landscape of biopharma companies, and continue delivering value to their stakeholders.
[1] KKR Press Release: [Link to the press release] [2] Financial Times: [Link to the Financial Times article] [3] Wall Street Journal: [Link to the Wall Street Journal article] [4] BusinessWire: [Link to the BusinessWire article] [5] HCRx website: [Link to HCRx's website]
- This acquisition allows KKR to finance biopharma projects through the underpenetrated biopharma royalty market, capitalizing on royalties from commercial-stage and near-commercial-stage biopharma assets.
- With the integration of HCRx's assets and expertise, KKR aims to bolster its life sciences capabilities and compete with notable firms like Royalty Pharma and Blackstone, exponentially increasing its origination capabilities in the healthcare sector.
