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In a significant move, private equity giant KKR is reportedly on the verge of acquiring consumer healthcare group Karo Healthcare for over €2.5 billion. This acquisition marks an expansion of KKR's portfolio in resilient, cash-generating consumer health assets.
However, details about the ownership structure of Karo Healthcare after the acquisition by KKR are not yet available. The deal is subject to regulatory approvals and other customary closing conditions. It is worth noting that KKR outbid several rival private equity firms during the sale process for Karo Healthcare.
Meanwhile, EQT, the previous owner of Karo Healthcare, has sold the company after owning it since 2019. This sale marks a significant exit for EQT, who also sold a €3 billion stake in enterprise software leader IFS. Technology investor Hg will increase its stake and become a co-controlling shareholder alongside EQT in IFS. TA Associates will remain an investor in IFS.
The sale of Karo Healthcare was initiated by EQT last year. EQT is not a part of the new ownership group for Karo Healthcare after selling the company.
The European real estate market is experiencing a surge in investment, with Blackstone leading the charge. The firm's latest fund, Blackstone Europe Real Estate Partners VII, is the largest external capital pool the firm has ever raised for European property, slightly exceeding its previous record. The fundraising spanned two years during a period of falling asset valuations and rising interest rates.
This surge in European real estate investment is driven by several factors. Increased investor interest is shifting from U.S.-centric to more balanced Europe exposure, fostered by market volatility and geopolitical uncertainty. Structural economic trends like regionalization of manufacturing, increased defense spending, and EU integration support medium-term growth and reduce risks in emerging markets. The rising focus on niche segments of the real estate market, such as life sciences and senior living, is driven by chronic supply shortages and evolving tenant preferences.
Institutional capital flows have increased sharply, with fundraising up 16% year-to-date versus 2024 and potentially reaching 130% growth if trends continue. Notable large funds include Blackstone’s Opportunistic Fund 7, TPG’s Value Added Fund 4, and Starwood’s German Debt Fund II, each exceeding $1 billion, alongside a substantial French-focused core fund by ARKEIA.
In summary, the robust and structurally supported European real estate investment landscape in 2025 is fueled by both cyclical stabilization and transformative megatrends. KKR's acquisition of Karo Healthcare and Blackstone's record commitments, combined with other institutional investors' growing capital deployment, highlight the strength and resilience of the European real estate market.
[1] Blackstone (2025). Press Release: Blackstone Announces Record European Real Estate Investment in 2025. [Online]. Available: https://www.blackstone.com/corporate/press-releases/blackstone-announces-record-european-real-estate-investment-in-2025
[2] PERE (2025). European Real Estate Market Outlook for H2 2025. [Online]. Available: https://www.perehq.com/articles/5409845/european-real-estate-market-outlook-for-h2-2025
[4] Blackstone (2025). Press Release: Blackstone AUM Reaches Industry Record of $1.2 Trillion in Q2 2025. [Online]. Available: https://www.blackstone.com/corporate/press-releases/blackstone-aum-reaches-industry-record-of-1-2-trillion-in-q2-2025
- KKR, a prominent private equity firm, is in the process of acquiring consumer healthcare group Karo Healthcare for over €2.5 billion, marking an expansion of their portfolio in resilient, cash-generating consumer health assets.
- The transaction with Karo Healthcare is subject to regulatory approvals and customary closing conditions.
- In a notable exit, previous owner EQT has sold Karo Healthcare to KKR, having owned the company since 2019.
- EQT outbid several rival private equity firms during the sale process for Karo Healthcare.
- The European real estate market is witnessing a surge in investment, with Blackstone raising the largest external capital pool ever for European property.
- Institutional capital flows have increased sharply, with fundraising up 16% year-to-date versus 2024, potentially reaching 130% growth if trends continue.
- Blackstone's record commitments, combined with other institutional investors' growing capital deployment, highlight the strength and resilience of the European real-estate market in 2025.
