KKR Forms Medical Device Platform

KKR has partnered with medical device executive Duke Rohlen to form Zeus Health to invest in medical device companies.

The formation of Zeus, with $100 million of capital, continues a long-standing relationship between KKR and Mr. Rohlen.

In March 2016, KKR invested in Spirox, a California-based ears, nose, and throat (ENT) device company, led by Mr. Rohlen as CEO, that focused on minimally invasive medical device technologies. Spirox was sold to Entellus Medical in July 2017 and the combined business was later sold to Stryker Corporation, a Michigan-based medical technology company, in February 2018.

In May 2017, KKR and Mr. Rohlen formed Ajax Health to invest in medical device developers and healthcare technology companies. Later that year, Ajax invested in EPIX Therapeutics, then known as Advanced Cardiac Therapeutics. EPIX was sold to Medtronic in 2019 for $350 million.

“With the formation of Zeus Health, I am thrilled to further deepen my relationship with KKR, whose unmatched reputation, scale and depth of health care expertise will continue to open new doors for us as we look to bring innovative medical devices to patients in need,” said Mr. Rohlen.

KKR’s investment in Zeus is being funded through the firm’s Health Care Strategic Growth Fund which closed in November 2017 with $1.45 billion of capital.

“We are excited to have the opportunity to work with Duke and his team again, now for the third time following our previous success with Ajax Health and Spirox,” said Ali Satvat, the co-head of KKR’s North American health care investing platform. “Duke is a proven leader in the medical device field, as are his team of industry and operational experts. We look forward to working together to identify and scale much-needed next-generation medical technologies.”

KKR (NYSE: KKR) makes private equity, fixed income, and other investments in companies in North America, Europe, Asia, and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world.

© 2020 Private Equity Professional | November 18, 2020