KKR aims to invest over $200mn capital in its Health Care Strategic Growth Fund
One of the largest US private equity firms, KKR, has finally closed its Health Care Strategic Growth Fund (HCSG). Through the fund, $1.45bn has been dedicated to enabling health care growth equity investment opportunities in the Americas.
The firm has been behind a number of healthcare investments since 2014 within biopharma, medical devices and healthcare IT. Its healthcare portfolio encompasses businesses such as Cohera Medical, Coherus BioSciences, AcuFocus, EBB Therapeutics and many more.
KKR will also invest over $260mn of capital, alongside external investors through its balance sheet and employee commitments. Additionally, the firm has deployed approximately $12bn globally in the health care space across private markets.
“Significant advances in medical innovation have yielded new products and services for patients, while consolidation and novel approaches to care delivery have the potential to improve clinical outcomes and reduce associated costs,” explained Ali Satvat, KKR Member and Head of KKR’s Health Care Strategic Growth investing efforts.
“These dynamics have created a significant market opportunity and an unmet need for strategic growth capital.”
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“We’re interested in areas such as biopharma, which scares certain investors but can offer great opportunities if you choose the right asset, financing model and management team,” Satvat informed Bloomberg.
“We are pleased that our enthusiasm for the attractive health care growth opportunities that the Fund enables is shared among a diversified group of global investors,” added Alisa Wood, Member and Head of KKR’s Private Market Products Group.
“This interest in the space, along with our strong team and record in health care, has helped us significantly exceed our initial target for the fundraise.”
HCSG aims to generate strong returns for investors by investing in health care-related companies advancing innovative products or services. In particular, HCSG expects to make equity investments of up to $100mn and focuses on themes such as clinical and technological innovation, cost containment, and consolidation of therapeutic offerings or care providers.
Check Point: Securing the future of enterprise IT
Cybersecurity solutions provider Check Point was founded in 1993 with a mission to secure ‘everything,’ and that includes the cloud. Conscious that nothing remains static in the digital world, the company prides itself on an ability to integrate new technology with its solutions. Across almost three decades in operation, Check Point, with its team of over 3,500 experts, has become adept at protecting networks, endpoints, mobile, IoT, and cloud.
“The pandemic has been somewhat of an accelerator in the evolution of cyber risk,” explains Erez Yarkoni, Global VP for Cloud Business. “We had remote workers and cloud adoption a long time beforehand, but now the volume and surface area is far greater.” Formerly a CIO for several big-name telcos before joining Check Point in 2019, Yarkoni considers the cloud to be “part of [his] heritage” and one of modern IT’s most valuable tools.
Check Point has three important ‘product families’, Quantum, CloudGuard, and Harmony, with each one providing another layer of holistic IT protection:
- Quantum: secures enterprise networks from sophisticated cyber attacks
- CloudGuard: acts as a scalable and unified cloud-native security platform for the protection of any cloud
- Harmony: protects remote users and devices from cyber threats that might compromise organisational data
However, more than just providing security, Yarkoni emphasises the need for software to be proactive and minimise the possibility of threats in the first instance. This is something Check Point assuredly delivers, “the industry recognises that preventing, not just detecting, is crucial. Check Point has one platform that gives customers the end-to-end cover they need; they don't have to go anywhere else. That level of threat prevention capability is core to our DNA and across all three product lines.”
In many ways, Check Point’s solutions’ capabilities have actually converged to meet the exact working requirements of contemporary enterprise IT. As more companies embark on their own digital transformation journeys in the wake of COVID-19, the inevitability of unforeseen threats increases, which also makes forming security-based partnerships essential. Healthcare of Ontario Pension Plan (HOOPP) sought out Check Point for this very reason when it was in the process of selecting Microsoft Azure as its cloud provider. “Let's be clear: Azure is a secure cloud, but when you operate in a cloud you need several layers of security and governance to prevent mistakes from becoming risks,” Yarkoni clarifies.
The partnership is a distinctly three-way split, with each bringing its own core expertise and competencies. More than that, Check Point, HOOPP and Microsoft are all invested in deepening their understanding of each other at an engineering and developmental level. “Both of our organisations (Check Point and Microsoft) are customer-obsessed: we look at the problem from the eyes of the customer and ask, ‘Are we creating value?’” That kind of focus is proving to be invaluable in the digital era, when the challenges and threats of tomorrow remain unpredictable. In this climate, only the best protected will survive and Check Point is standing by, ready to help.
“HOOPP is an amazing organisation,” concludes Yarkoni. “For us to be successful with a customer and be selected as a partner is actually a badge of honor. It says, ‘We passed a very intense and in-depth inspection by very smart people,’ and for me that’s the best thing about working with organisations like HOOPP.”