KKR Acquires Majority Stake in HealthCare Royalty Partners, Expanding Life Sciences Strategy and Biopharma Royalty Capabilities
KKR & Co. Inc., one of the world’s foremost investment firms, has announced a transformative acquisition: the majority ownership of HealthCare Royalty Partners (HCRx), a prominent player in biopharma royalty financing. The strategic partnership not only strengthens KKR’s foothold in the healthcare investment space but significantly broadens its reach within the fast-evolving life sciences sector, especially in biopharmaceutical royalty and credit investing.
A Strategic Expansion into Biopharma Royalty Investing
This acquisition underscores KKR’s commitment to deepening its healthcare investment capabilities. With a growing demand for innovative and flexible capital solutions within the biopharmaceutical industry, the deal positions KKR to offer more comprehensive financial support to companies across the health care and life sciences spectrum.
HealthCare Royalty Partners, founded in 2006 and based in Stamford, Connecticut, has developed a reputation for sophisticated and targeted investments in commercial-stage and near-commercial-stage biopharma assets. Since its inception, HCRx has deployed over $7 billion in capital and currently manages approximately $3 billion in assets. Its diversified portfolio includes investments in more than 55 products across over 10 therapeutic areas. The firm specializes in royalty monetization, private credit solutions, and corporate financing strategies—offering funding options that are in high demand within the increasingly capital-intensive biopharma market.
The acquisition allows KKR to leverage HCRx’s domain expertise and operating platform at a time when the biopharma royalties market, although growing, remains underpenetrated relative to the broader funding needs of the life sciences industry.
Driving Synergies: Combining Investment Power and Industry Expertise
Ali Satvat, Partner at KKR, who also serves as Co-Head of Health Care and Global Head of Health Care Strategic Growth, described the acquisition as both strategic and synergistic.
“As the biopharma industry has grown and matured, companies are increasingly seeking to partner with investors that can provide a range of capital to meet their financing needs,” said Satvat. “The HCRx acquisition supports KKR’s ability to provide comprehensive solutions across the health care spectrum and meaningfully expands our life sciences capabilities to address market demand.”
Satvat also emphasized the strong alignment between the two firms. “We were drawn to HCRx given our long-standing relationship with the firm, its market leadership in biopharma royalties—an asset class with growing demand—and the expertise of its leadership team. We are deeply impressed with the differentiated platform that Clarke and the HCRx team have built, and we look forward to welcoming them to KKR.”
Indeed, the relationship between KKR and HCRx predates this acquisition, with both firms having shared a collaborative and strategic rapport. This acquisition formalizes that partnership and sets the stage for an integrated platform that combines KKR’s global investment expertise with HCRx’s nuanced understanding of biopharma financing.
Leadership Continuity and Minority Ownership
As part of the deal, Clarke Futch, Chairman and CEO of HCRx, will continue to lead the company and retain a significant minority ownership stake. This ensures continuity of leadership and strategic direction for HCRx as it integrates into KKR’s broader healthcare platform.
Futch expressed optimism and enthusiasm about the new chapter for HCRx. “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,” he said. “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.”
The HCRx team will work in close coordination with KKR’s healthcare unit, with the combined platform expected to unlock new financing avenues for biopharma companies seeking non-dilutive capital to fund R&D, commercial launches, and product expansions.
KKR’s Growing Life Sciences Footprint
The acquisition is a continuation of KKR’s long-standing interest and active investment in the healthcare sector. Since 2004, KKR has deployed more than $20 billion in equity capital into healthcare-related companies globally, with a strong focus on innovation-driven sectors such as life sciences, biopharma, and digital health.
Among KKR’s recent life sciences investments are:
- BridgeBio Pharma: A clinical-stage biopharmaceutical company focused on developing therapies for genetic diseases.
- Dawn Bio: A flexible equity capital provider targeting companies across the life sciences ecosystem.
- Immedica Pharma: A biopharmaceutical firm concentrating on rare diseases and specialty care.
- Treeline Biosciences: A discovery platform and therapeutics developer targeting oncogenic drivers in cancer.
These portfolio companies illustrate KKR’s commitment to investing across various modalities and disease areas, and the HCRx acquisition is expected to further complement this strategy by enabling KKR to offer alternative capital solutions in the form of royalty monetization and structured credit products.
Industry Context: The Growing Demand for Royalty Financing
The biopharmaceutical sector continues to evolve rapidly, with new technologies, longer development timelines, and complex commercialization pathways increasing the capital intensity of drug development. As traditional sources of funding—such as equity and conventional debt—become less predictable or more expensive, companies are turning to royalty-based financing as a non-dilutive alternative.
Royalty deals offer biopharma companies upfront capital in exchange for a share of future product revenues. For investors, these structures present an attractive risk-return profile, especially when underpinned by approved or late-stage assets with predictable cash flows.
This market dynamic has fueled increased interest in royalty financing vehicles. However, the segment still represents a fraction of overall biopharma capital activity, presenting an opportunity for platforms like HCRx to expand their reach. With KKR’s backing, HCRx is now in a stronger position to address this gap and become a central player in bridging the capital needs of the industry.
For KKR, this acquisition signals a bold step forward in enhancing its value proposition in healthcare investing. By incorporating royalty and credit strategies into its toolkit, KKR is now better equipped to support biopharma companies at every stage of development, from early R&D to commercialization.
For HCRx, the partnership offers both strategic alignment and operational scale. With access to KKR’s vast network, deep capital base, and global resources, the firm is poised to expand its offerings, pursue larger and more complex deals, and strengthen its presence across therapeutic verticals and geographies.
The deal also reflects a broader trend within private equity and investment management, where firms are increasingly looking to diversify their healthcare investment strategies beyond traditional buyouts and venture capital. Platforms that can offer structured financing, royalty streams, and non-dilutive capital are becoming essential components of the funding ecosystem.
Financial Advisory and Closing Notes
TD Securities acted as the exclusive financial advisor to HealthCare Royalty Partners in connection with the transaction. Additional financial details of the deal were not disclosed, though the structure includes continued leadership from HCRx, a majority stake held by, and shared strategic governance moving forward.
As both firms look ahead, the collaboration promises to deliver innovative financial solutions tailored to the complex and evolving needs of the biopharma industry—an industry that remains at the forefront of global innovation in healthcare.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.
KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc, please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About HCRx
HCRx is a leading royalty acquisition company focused on commercial and near-commercial biopharmaceutical products with offices in Stamford, San Francisco, Boston, London and Miami. HCRx has committed $7+ billion in over 110 biopharmaceutical products since inception. For more information, visit https://www.hcrx.com. HEALTHCARE ROYALTY®, HEALTHCARE ROYALTY PARTNERS® and HCRx® are registered trademarks of HealthCare Royalty Management, LLC.
