KKR – a leading global investment firm – recently announced an agreement to invest in Catalio Capital Management, LP, a multi-strategy investment firm focused on breakthrough biomedical technology and innovative healthcare companies. Adding new capital will accelerate Catalio’s growth trajectory and talent acquisition, as well as anchor its investment strategies. According to the agreement, KKR is acquiring a minority economic stake in Catalio and will invest in Catalio’s funds.
Henry Kravis, Co-Founder and Co-Executive Chairman of KKR, will be named as Chairman of a new Board of Advisors for Catalio that will help guide the strategic growth of the business. And the members of the Catalio Board of Advisors will include Alex Gorsky, the retired Chairman & CEO of Johnson & Johnson; Andrew Liveris, the retired Chairman & CEO of Dow Chemical Co.; Dina Powell McCormick, the Vice Chairman & President of Global Client Services at BDT & MSD, and Tim J. O’Neill, a longtime Partner and retired Co-Head of Goldman Sachs Asset Management.
KKR has a long track record of supporting healthcare companies globally, having committed over $20 billion to the sector since 2004. And in the life sciences sector specifically, KKR has already committed well over $1 billion in capital from its healthcare growth strategy, including investments in BridgeBio Pharma, Dawn Bio, and Treeline Biosciences, and will fund this deal from its balance sheet. KKR’s healthcare growth strategy is focused on investing in high-growth healthcare-related companies to which KKR can be a unique strategic partner in helping reach scale.
Following the completion of the transaction, Petrocheilos and Dr. Vogelstein will continue to own a controlling stake in Catalio, and the day-to-day management and operation of the Catalio business will remain the same.
KEY QUOTES:
“The life sciences sector represents a growing market opportunity and has been an important area of focus for our healthcare growth strategy, which will be further accelerated through our partnership with Catalio. We are impressed not only by Catalio’s entrepreneurial leadership team but also by its vast network of leading scientists who serve as venture partners. We look forward to supporting Catalio in taking the platform to the next level and unlocking the next generation of biomedical technology.”
— Ali Satvat, Partner, Co-Head of Americas Health Care and Global Head of Health Care Strategic Growth at KKR
“We are grateful to KKR for its support, which we believe affirms the success of Catalio’s strategy and recognizes the value of our experienced life sciences investment team. KKR’s investment comes at an exciting time in Catalio’s development. We believe that we will now be even better positioned to empower the world’s most innovative clinical scientists to turn next-generation biomedical discoveries into valuable treatments and cures and create profitable, well-run companies that advance the boundaries of care.”
— George Petrocheilos and R. Jacob Vogelstein, Co-Founders and Managing Partners of Catalio
