KKR Snaps Up Majority Stake In Therapy Brands

Global investment firm KKR is acquiring a majority stake in Therapy Brands. The latter is a practice management and electronic health record (EHR) platform for behavioral healthcare practices.

Max Lin, KKR (KKR) partner and co-lead of KKR’s Americas Private Equity business health care industry team, said, “We are delighted to be backing Therapy Brands at a time when there is increasing recognition and social awareness about the importance of mental health.”

Lin added, “Therapy Brands has developed an impressive portfolio of best-in-class software tools and mission-critical solutions to help mental health providers modernize their practices.” (See KKR stock analysis on TipRanks)

KKR is acquiring the majority stake from existing investors, funds associated with Lightyear Capital LLC, Oak HC/FT, and Greater Sum Ventures. Existing investor, PSG, will continue to be a minority stakeholder in Therapy Brands.

Currently, Therapy Brands serves more than 28,000 healthcare practices across the U.S. Along with practice management and EHR, it also offers telehealth, data collection, revenue cycle management, and e-prescribing services.

KKR’s other behavioral healthcare investments include Blue Sprig Pediatrics and BrightSpring Health Services. It also has invested in healthcare technology companies WebMD and Clarify Health.

Recently, Oppenheimer analyst Chris Kotowski assigned the stock a Buy rating with a $53 price target (3.8% upside potential).

Kotowski commented, “KKR has used its balance sheet to help seed and develop a real assets platform that now has $38B in commitments, up from literally zero a decade ago.” The analyst also expects KKR’s April 14 investor day to “give confidence in a strong growth trajectory.”

Consensus on the Street is that KKR is a Moderate Buy, based on 8 Buys and 3 Holds. The average analyst price target of $53.55 implies an upside potential of 4.9%. Shares have gained about 111.6% over the past year.

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