BridgeBio Secures $1B Preferred Equity Investment from KKR and Sixth Street

BBIO has locked in up to $1 billion of preferred equity from Sixth Street and HealthCare Royalty, a business of KKR, a financing built to bankroll its busiest launch stretch to date . Sixth Street led the round and funded $800 million at closing, with HealthCare Royalty contributing $133.9 million, structured as Series A Cumulative Convertible Participating Preferred Stock . Proceeds are earmarked to support the continued commercial expansion of Attruby (acoramidis) and to fund three potential U.S. launches over the next 12 months: BBP-418 for LGMD2I/R9, encaleret for ADH1, and infigratinib for achondroplasia .

The timing lines up with a real cash need. BridgeBio ended Q1 2026 with $940.2 million in cash, cash equivalents and marketable securities, up from $587.5 million a year earlier, a build helped along by a $632.5 million convertible notes offering it closed in January 2026 . Layering permanent preferred capital on top of that gives the company runway to fund three simultaneous launch campaigns without leaning entirely on Attruby revenue or further note issuance, though it also stacks a new fixed obligation onto the balance sheet.

The terms carry a 7.00% initial dividend, payable in kind or in cash at BridgeBio's election, with an initial conversion price of $137.79 per share, more than a 100% premium to the 30-day volume-weighted average price . That conversion price steps up to $153.10 per share, over a 125% premium, starting on the fifth anniversary, and the security is structured as permanent equity with no scheduled maturity . CEO Neil Kumar framed the deal as balancing BridgeBio's patient-first mission with capital discipline, saying it lets the company execute "in a manner that maximizes the economic value" for shareholders .

Attruby is the backdrop that makes the financing plausible. Net product revenue reached $180.6 million in Q1 2026, up 24% sequentially and roughly 392% year over year, and accounted for about 93% of total company revenue . Evercore ISI has raised its full-year 2026 worldwide Attruby sales estimate to $1.02 billion from $828 million, and consensus estimates cluster near $954.5 million for the year . If that trajectory holds, it could give BridgeBio a self-funding commercial base as it works to bring three more programs to market.

The structure isn't without cost to existing shareholders. The preferred stock's dividend and eventual conversion could weigh on per-share economics, and BridgeBio still has a $500 million at-the-market common stock program in place, meaning combined dilution potential from the two instruments could approach $1.5 billion . Short interest sat near 14.82% of float heading into the announcement, an indication some investors are already positioned against the stock . What to watch next: regulatory decisions and launch execution on BBP-418, encaleret and infigratinib, how BridgeBio elects to pay the preferred dividend (cash versus PIK), and whether it taps the ATM program alongside this raise.