THL Partners has agreed to acquire a majority stake in US clinical trial operator Headlands Research from KKR, in a transaction valued at about $600m, according to sources familiar with the matter cited by Reuters. The deal is expected to be announced as soon as Thursday.

Headlands operates more than 20 sites across the US and has conducted over 5,000 trials in therapeutic areas including central nervous system disorders, mental health, vaccines, and metabolic diseases. The company has benefited from rising pharmaceutical R&D spending, driven by ageing populations and the development of new therapies.

Private equity interest in clinical trial networks has been increasing, with investors seeking to consolidate fragmented site operators and deploy technology to scale operations. THL has been active in pharma services for over two decades, with prior investments including Syneos Health, PCI Pharma Services, Adare Pharma Solutions, and Red Nucleus.

KKR, which acquired Headlands in 2018, is exiting the investment having at least doubled its stake, following other lucrative healthcare exits such as the $12bn sale of PRA Health Sciences, which delivered a sixfold return.

Recent sector activity includes BayPine’s $1.5bn purchase of CenExel and Genstar Capital’s majority investment in Flourish Research. Industry players expect AI-driven drug discovery and faster regulatory approvals to further boost clinical trial demand.

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