KKR Said to Seek Up to $800 Million for First Health-Care Fund

  • Partners Satvat, Momtazee said to oversee deals in the pool
  • Fund is said to target investments of less than $100 million

KKR & Co. is trying to gather $650 million to $800 million for its first fund dedicated to health care, people with knowledge of the process said.

The fund, which will make growth equity investments, will be led by Ali Satvat and Jim Momtazee, said the people, who asked not to be named because the details are private. Satvat, a partner focused on health care, and Momtazee, the asset manager’s head of health care, are based in Menlo Park, California.

The fund, which started gathering capital this month, will make investments of less than $100 million, one of the people said. KKR’s larger private equity fund will continue to strike big-ticket deals for health-care companies.

A spokeswoman for New York-based KKR declined to comment on fundraising.

More large buyout firms, such as Carlyle Group LP and Blackstone Group LP, are expanding their platforms by raising smaller, single-strategy vehicles in addition to their multi-billion-dollar flagship funds. KKR started the health-care growth strategy by using money from its own balance sheet in deals -- a process that the firm, led by Henry Kravis and George Roberts, has used in the past to start investing in areas such as real estate and growth technology.

KKR earlier this month led a $66 million funding round for AcuFocus Inc., an ophthalmic medical device company, according to a Sept. 9 statement.

The firm has invested or committed more than $200 million in health care growth companies since 2014, including in Spirox, a medical device maker, Signostics, a provider of handheld ultrasound and bladder scanner, and Cohera Medical, a developer of surgical adhesives and sealants, according to the statement. KKR has invested about $4.5 billion in health-care companies since 2004.

The firm is also collecting money for its latest private equity pool, called Americas Fund XII, and expects to raise the maximum $12 billion agreed to with investors. With money from KKR and employees, the fund will probably exceed $13 billion, Scott Nuttall, KKR’s head of global capital and asset management, said in July.

KKR, founded by Kravis, Roberts and Jerry Kohlberg in 1976, managed $131 billion as of June 30.

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