KKR Increases Investment in BrightSpring Health Services with 11.6 Million Share Acquisition

The purchase bolsters KKR's existing stake in BrightSpring, reinforcing its position in health services.

September 11, 2024

Significant Increase in Holdings

KKR Phoenix Aggregator L.P., an entity affiliated with the global investment firm KKR & Co., has expanded its stake in BrightSpring Health Services, Inc. with the acquisition of over 11.6 million shares. The transaction, dated September 11, 2024, was executed at a purchase price of $11.13 per share, as per the latest filing with the Securities and Exchange Commission (SEC). This purchase significantly boosts KKR's indirect ownership of BrightSpring shares, totaling nearly 93 million shares after the acquisition.

BrightSpring, a prominent player in the health and human services sector, has become a focal point for KKR's investment strategy. The firm's latest acquisition marks its ongoing confidence in BrightSpring's growth prospects and its commitment to the company's strategic direction in the health services industry.

The SEC filing details the entities involved in the acquisition and their intricate relationship with each other. At the forefront is KKR Phoenix Aggregator L.P., but control over these shares is structured through multiple layers, including KKR Phoenix Aggregator GP LLC, KKR Americas Fund XII L.P., and several other associated partnerships and corporations. This complex structure allows KKR to manage its indirect holdings in BrightSpring efficiently.

The relationships among these entities are integral to KKR's investment strategy. Each of the named entities plays a specific role in the ownership, oversight, and strategic decisions surrounding the acquired shares. This interconnected system helps manage and direct the investment to align with KKR’s overall objectives.

Clarification on Ownership and Reporting

Despite the large number of shares held by the KKR-affiliated entities, the filing includes a critical disclaimer about beneficial ownership. The report emphasizes that while these entities collectively hold a substantial portion of BrightSpring's stock, they only assert beneficial ownership to the extent of their economic interest. This clarification is an important legal distinction that defines the extent of their control and influence over the shares.

The filing also highlights that more than one entity was required to file the Form 4 due to the SEC’s limit on reporting parties per form. As a result, affiliated entities have submitted separate filings to account for all shares acquired. This multi-filing approach ensures transparency in the reporting of the transactions.

Investment Impact

The acquisition underscores KKR's continued commitment to investing in the health and human services sector, a market that BrightSpring Health Services serves. With its expanded stake, KKR strengthens its strategic position and signals confidence in BrightSpring’s potential for growth and its operational strategies. This move by KKR also reflects the broader investment trend of targeting companies with solid potential in critical service sectors like healthcare.

Market watchers and stakeholders will closely observe the implications of KKR’s increased stake in BrightSpring as the firm continues to solidify its presence in the health services industry.