KKR-backed venture firm Catalio Capital Management is targeting $500 million for its Nexus V fund to invest in AI-driven healthcare startups — its second fundraise in 16 months. The firm accelerated the fund's launch from 2027 to seize a "once-in-a-generation opportunity" as AI converges with biomedicine and clinical care, according to an investor letter seen by Bloomberg. Catalio's prior fund, closed in July 2025 with over $400 million, allocated 40% to AI-exposed companies, a mix it expects to replicate. Five existing bets will roll into the new vehicle, including Doctronic, which brands itself as "your personal AI doctor," and Basecamp Research, developing AI-designed therapeutics.
The fundraising reflects surging AI adoption in life sciences: 70% of healthcare firms now use AI, up from 63% last year, per an Nvidia survey. Catalio has exited three portfolio companies this year in deals worth over $8 billion total and taken seven public, including Iambic Therapeutics' $150 million IPO this week and Parabilis Medicines' $745 million debut in June. Enveda Biosciences and Imperative Care are also slated for IPOs.
KKR acquired a minority stake in Catalio in 2023; co-founder Henry Kravis chairs its board, alongside Thoma Bravo's Orlando Bravo and HPS Investment Partners' Michael Patterson.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing