KKR-backed Catalio Capital seeks $500 million for AI healthcare startups

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. Across its strategies, Catalio now manages approximately $2 billion in assets. The firm says it has logged more than 20 exits since launchi...