Levine Leichtman partner Mike Weinberg talks investing in pharma services; KKR closes 13th flagship on $19bn

KKR racks up $19 billion for newest fund.

Happy Monday Hubsters!

How’s the week lookin’?

Pharma services: Levine Leichtman Capital has been focusing on pharmaceutical services, where the firm believes tailwinds exist beyond pressures from the pandemic, according to the most recent Q&A in PE Hub’s ongoing series. Reporter Aaron Weitzman spoke with Mike Weinberg, managing partner at Levine Leichtman, about the strategy. Click here for the full interview. Here’s a sample:

“Just think about how drug enhancement is impacting success rates in treating disease, improving quality of life for chronic illnesses, and there’s more to come. There is so much research occurring in real-time, so we do not need to overlap with the venture end, but rather attach ourselves to the growth aspect. It is an exciting sector.”

The firm last year acquired Prime Global Medical Communications, which works with pharma companies to market to healthcare practitioners. In January, Prime added on HCD Economics, which conducts research and collects proprietary health economic evidence for market access, pricing and reimbursement.

On the opposite end of the spectrum, LLCP also owns a continuing education company called Therapeutic Research Centers, which made an add-on acquisition last year.

“TRC helps pharmacists and nurse practitioners comply with the continuing education requirements of their licenses and keeps practitioners up to date with all the latest and greatest clinical developments,” Weinberg said.

Big close: KKR announced this morning it has closed its 13th North America flagship fund on $19 billion. The firm kicked in $2 billion from its balance sheet, affiliates and employees. The firm’s Fund XII, which began investing in 2017, is fully deployed and is generating a 41.9 percent net internal rate of return, and a 2.2x net multiple as of Dec. 31, the firm reported.

“Particularly at a time of continued volatility, we believe we are entering a macroeconomic environment that is tailor-made for private equity and for KKR specifically,” said Pete Stavros and Nate Taylor, co-heads of KKR’s Americas Private Equity platform, in a statement. Read more here.

Fund XIII has a bit more time to deploy than other large private equity funds. It includes a six-year investment period and an 11-year fund life, Buyouts previously reported. The terms are consistent with past KKR funds. KKR also offered a fee break for LPs who committed before the first close, Buyouts reported. The pool is charging a 1.5 percent management fee during the investment period, though LPs who committed into the first close would pay a 1.35 percent fee, Buyouts reported.

Off-Duty: In Buyouts’ latest “Off-Duty” Q&A – which focuses on private equity folks’ life outside of work – Elizabeth Weymouth, founder of Grafine Partners, gives us a glimpse of life outside of PE. Read the full piece on Buyouts. Here’s a sample:

If you weren’t in PE, what job would you like to have?

A CNBC anchor covering markets.

How do you relax when you’re not working?
Traveling, exercising and spending time with my husband and three boys.

What book are you reading right now?
The Lincoln Highway by Amor Towles.

That’s it for me! Have a great Monday. Hit me up with tips n’ gossip, feedback, or book recommendations at cwitkowsky@buyoutsinsider.com or over on LinkedIn.