KKR-backed Catalio Capital seeks $500 million for AI healthcare startups
The New York firm is reportedly raising its second fund in about 16 months, betting that artificial intelligence and biomedicine belong together
Catalio Capital Management wants $500 million to back startups where artificial intelligence meets healthcare. Bloomberg reported the raise, citing people familiar with the matter.
If it closes, this would be the firm’s second fundraise in roughly 16 months.
The details behind the raise
Catalio is a New York investment firm founded in 2020. KKR & Co. has held a partial stake in it since 2023.
The new capital would go toward companies blending AI with biomedicine and clinical care. The firm’s stated goal is to build businesses that could end up defining their categories.
Bloomberg reported the fundraising effort on October 15, 2026. The raise is still in progress, so the final size could change before any close.
The firm’s recent fundraising record gives some context. In mid-2025, Catalio closed its Catalio Nexus Fund IV at more than $400 million, ahead of its original target.
Then, in early 2026, it pulled in over $325 million for a private credit vehicle focused on life sciences. That fund was oversubscribed and also beat its initial goal.
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Across its strategies, Catalio now manages approximately $2 billion in assets. The firm says it has logged more than 20 exits since launching.
Who is behind Catalio
The firm was co-founded by George Petrocheilos and R. Jacob Vogelstein, Ph.D. Its advisory board carries some notable weight from the worlds of buyouts and big pharma.
KKR co-founder Henry Kravis serves as co-chairman of that board. Former Johnson & Johnson CEO Alex Gorsky is also a member.
The Enveda bet and the AI drug discovery wave
Catalio’s most visible recent move came in September 2026. It led a $311 million Series E round for Enveda Therapeutics.
That round doubled Enveda’s valuation to approximately $2 billion. Enveda works in AI-enabled drug discovery, the corner of biotech where software helps scientists search for promising molecules faster.
What this means for healthcare investors
Catalio has closed two funds above target since mid-2025 and is now back in the market.
Whether this raise lands at, above, or below $500 million will be a useful signal of appetite for the AI-plus-biomedicine thesis.