Kayne Anderson Real Estate, the real estate private equity arm of Kayne Anderson Capital Advisors, has announced the final close of Kayne Anderson Real Estate Partners VII, LP (“KAREP VII” or the “Fund”), the largest opportunistic equity fund in the firm’s history, with USD 5.12 billion in capital commitments. Due to strong investor demand, the fund significantly exceeded its initial USD 3 billion target.
The fund will continue Kayne Anderson Real Estate’s longstanding strategy of investing in high-quality real estate assets and platforms across sectors where the firm believes specialised operational expertise, scale and deep industry relationships drive meaningful competitive advantages.
Building on the firm’s established track record across medical offices, seniors’ housing, student housing and light industrial, KAREP VII will capitalise on opportunities created by ongoing dislocation across commercial real estate markets and increasing demand for specialised operating expertise.
The Fund will leverage Kayne Anderson Real Estate’s operator-orientated platform, extensive sourcing network and longstanding, exclusive partnerships with leading developers, operators and healthcare systems to pursue investments across its targeted sectors.
“Our ability to raise KAREP VII – the largest fund in our firm’s history – in the current market environment reflects the strength of our platform and the confidence investors continue to place in our team,” said Al Rabil, CEO of Kayne Anderson and Co-Founder and CEO of Kayne Anderson Real Estate.
“We remain focused on our mission-critical alternative sectors where we believe long-term fundamental tailwinds and operational complexity create compelling investment opportunities for our differentiated investment platform. This is the beginning of a super cycle for the alternative real estate sectors on which we focus, and we are grateful for the continued support from both existing and new investors. We look forward to building on our long track record of delivering strong risk-adjusted returns,” the senior official stated further.
David Selznick, Chief Investment Officer of Kayne Anderson Real Estate, added, “We believe the current market environment continues to create attractive opportunities to acquire and develop high-quality assets at compelling basis levels across our targeted sectors.” With KAREP VII, we are well-positioned to leverage our deep sector expertise, operating relationships and national platform to capitalise on these opportunities on behalf of our investors.”
Since inception, Kayne Anderson Real Estate has completed over USD 32 billion in gross transaction volume across its opportunistic equity strategies and over USD 38 billion in gross transactions across its broader real estate platform. With the close of KAREP VII, the firm now has USD 21 billion in total assets under management.