Kaiser Permanente unloading $3.5B in private equity stakes
Kaiser Permanente is planning to unload $3.5 billion in stakes it currently holds in private equity firms to secondary buyers, the Wall Street Journal reported.
Citing sources familiar with the matter, WSJ said it is working with Jefferies Financial Group to make the deals, with another round of selloffs expected later this year. The purge of these investments is reportedly a result of cash constraints.
Kaiser Permanente is one of the largest nonprofit health systems in the U.S., operating more than 618 medical offices and 40 hospitals. In 2022, the organization was one of the largest investors in private equity firms—it’s those assets it is now selling off, two years later.
The health system has faced multiple setbacks over the last year, including 2023 protests over its labor practices, followed by a $41.5 million wrongful termination payout. Last month, Kaiser Permanente reported a massive data leak on its website impacted 13.4 million members.
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Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.