Kayne Anderson Real Estate gathered $2.75 billion in capital commitments for its latest closed-end fund, KAREP VI — the largest opportunistic equity fund ever raised by the firm.
The real estate private equity arm of Kayne Anderson Capital Advisors, Kayne Anderson Real Estate, closed its sixth opportunistic equity fund significantly above the fund’s original $2 billion target.
The $30 billion alternative investment firm received strong support from existing investors as well as interest from a diverse base of new investors. Investors in the fund include the New York State Common Retirement Fund.
“Our history of success investing in medical, seniors and student assets reflects the deep experience, talent and creativity of our investment team and the myriad of long-term relationships we have developed with the most sophisticated and innovative partners in the alternative real estate space,” said Al Rabil, CEO of Kayne Anderson Capital Advisors and co-founder and CEO of Kayne Anderson Real Estate, which has over $13 billion in assets under management.
With the closing of KAREP VI, KA Real Estate has completed over $23 billion of gross investments across its equity and debt strategies and has invested in approximately 25 million square feet of medical office space, 17,400 seniors housing units, 50,000 student housing beds, and over 9,000 loans secured by assets across these target sectors, including two million multifamily units.
Kayne Anderson executives point to the combination of an aging U.S. population and accelerating enrollments indicating strong growth characteristics across all asset classes. KA Real Estate’s operator-oriented platform allows the fund to invest in assets that require and benefit from specialized operational knowledge and expertise.