Goldman Sachs Asset Management’s AIMS Petershill program made a passive minority investment in Kayne Anderson Real Estate, a platform launched in 2007 by $31 billion hedge fund firm Kayne Anderson Capital Advisors in partnership with Al Rabil, co-founder, managing partner and CEO of the firm.
No changes will be made to management or control of the alternative real estate businesses at the Boca Raton, Florida-based firm and it will continue to be part of parent Kayne Anderson and will operate under the direction of Rabil and David Selznick, chief investment officer.
Kayne Anderson Real Estate (KA Real Estate) managed nearly $8 billion on behalf of institutional investors and high-net-worth investors globally, investing in opportunistic, core and debt strategies in the alternative real estate sectors of medical office, senior housing, student housing and self-storage.
The value of the transactions was not disclosed, but KA Real Estate officials said it would provide capital that will be reinvested in the business as the Petershill’s global platform will provide strategic support for new platform initiatives and expand the firm’s client base.
“Petershill has a history of supporting a select group of alternative asset managers and we are privileged to have their partnership as we continue to grow and deliver results for our investors, said Rabil.
Robert Hamilton Kelly, managing director in the AIMS Petershill program said that Goldman was excited to partner for KA Real Estate’s next phase of development.
Last year, it was reported that Goldman’s Petershill unit was seeking to raise $4 billion for a new fund that would invest mostly in private equity but also in some hedge funds.
Petershill focuses exclusively on investing in alternative investment firms and is part of Goldman Sachs Asset Management’s Alternative Investments & Manager Selection Group, which manages over $250 billion in assets across leading real estate, private equity, hedge-fund, and traditional long-only managers.
Another recent Petershill investment in the real estate space was in Slate Asset Management in August.