HealthCare Royalty Partners' majority share has been obtained by KKR
Global investment firm KKR has announced its acquisition of a majority stake in HealthCare Royalty Partners (HCRx), a premier biopharma royalty acquisition company based in Stamford, Connecticut. This move marks a significant milestone for HCRx and underscores the growing recognition of the biopharma royalties market as an expanding and strategically important asset class within life sciences investing.
With over $20 billion invested in global healthcare since 2004, KKR's life sciences capabilities are expanded through the HCRx acquisition. The deal aims to capitalize on the growing market by integrating HCRx’s differentiated platform and leadership expertise to provide comprehensive financing solutions across the healthcare ecosystem.
HCRx, founded in 2006 and managing about $3 billion in assets with over $7 billion committed capital, has expertise in royalty monetizations across more than 10 therapeutic areas and 55 products. The biopharma royalties market currently covers only a fraction of the biopharma sector's total capital needs, indicating significant room for growth.
Clarke Futch, HCRx’s Chairman and CEO, will continue to lead the team and retain a minority interest. He expressed that joining forces with KKR is a significant milestone for HCRx, as it is well-positioned to scale its platform and more comprehensively serve the landscape of biopharma companies.
Ali Satvat, Partner at KKR, expressed that the HCRx acquisition supports KKR’s ability to provide comprehensive solutions across the healthcare spectrum. HCRx shares a common vision with KKR to support the growth and innovation of the biopharma industry.
The HCRx team will work closely with KKR’s healthcare team to provide a range of financing solutions. This includes royalty monetizations, which are becoming increasingly popular as stable, long-term returns in a maturing biopharma industry.
The deal highlights a trend where investors are increasingly attracted to intellectual property and royalty-based revenue streams. KKR's investment indicates confidence in the biopharma royalties market's growth prospects and its evolving role as a key financing mechanism within biopharma, driven by increasing capital demand and the appeal of royalty-based asset classes.
TD Securities served as the exclusive financial advisor to HCRx in the acquisition. KKR and HCRx aim to continue delivering value to their stakeholders as they navigate the evolving landscape of the biopharma industry.
KKR's life sciences portfolio includes companies like BridgeBio Pharma, Dawn Bio, Immedica Pharma, and Treeline Biosciences. With the addition of HCRx, KKR is poised to expand its footprint in the biopharma royalties market and further strengthen its position as a leading player in life sciences and healthcare investing.
[1] BusinessWire. (2022, August 1). KKR Announces Agreement to Acquire a Majority Stake in HealthCare Royalty Partners (HCRx). Business Wire. https://www.businesswire.com/news/home/20220801005438/en/KKR-Announces-Agreement-to-Acquire-a-Majority-Stake-in-HealthCare-Royalty-Partners-HCRx
[2] KKR. (2022, August 1). KKR to Acquire Majority Stake in HealthCare Royalty Partners (HCRx). KKR. https://www.kkr.com/newsroom/press-releases/kkrs-acquires-majority-stake-in-healthcare-royalty-partners-hcrx
[3] PR Newswire. (2022, August 1). KKR to Acquire Majority Stake in HealthCare Royalty Partners (HCRx). PR Newswire. https://www.prnewswire.com/news-releases/kkr-to-acquire-majority-stake-in-healthcare-royalty-partners-hcrx-301600067.html
- The acquisition of a majority stake in HealthCare Royalty Partners (HCRx) by global investment firm KKR signifies the integration of HCRx’s leading platform in biopharma royalty acquisitions with KKR’s comprehensive financing solutions in technology and finance.
- With its recent investment in HealthCare Royalty Partners (HCRx), KKR is expanding its life sciences portfolio and demonstrating confidence in the growing potential of technology-driven healthcare businesses, particularly those focused on royalty monetizations in the biopharma sector.
