Kayne Anderson Real Estate has closed its fourth flagship debt fund at $1.875 billion, beating its $1.5 billion target. The fund will target multifamily and student housing, medical office, senior housing and self-storage sectors.
BOCA RATON, FL. May 11, 2022 – Kayne Anderson Real Estate (“KA Real Estate”), the real estate investment arm of Kayne Anderson Capital Advisors, L.P., today announced that its debt platform, KA Real Estate Debt (“KARED”), has closed its fourth flagship debt fund, Kayne Anderson Real Estate Debt IV (“KARED IV”), with $1.875 billion in capital commitments. The fundraise, having received strong support from a diverse group of existing and new investors, surpassed its original target of $1.5 billion.
KARED IV seeks to generate risk-adjusted returns in structured real estate finance, leveraging KA Real Estate’s deep industry relationships and unmatched track record in targeted real estate asset classes. The fund will continue to execute on proprietary investment opportunities in Freddie Mac structured products and direct loan originations and purchases across targeted sectors including multifamily and student housing, medical office, seniors housing and self-storage.
“We are very excited to have closed KARED IV – our largest debt fund to date – and are grateful for the continued support from our investors as we continue to grow our platform,” said Al Rabil, Chief Executive Officer, Kayne Anderson Capital Advisors and Co-Founder and CEO, Kayne Anderson Real Estate. “This successful fundraise is a testament to our best-in-class team, unique network of relationships and highly focused strategy, all of which allow us to serve as a go-to partner to some of the most sophisticated market participants.”
“As real estate markets continue to respond to market dislocation, lending standards remain historically conservative, particularly in niche asset classes,” said David Selznick, Chief Investment Officer, KA Real Estate. “KARED IV is well positioned to provide liquidity for borrowers while continuing to leverage the firm’s longstanding relationship with Freddie Mac to source and acquire stabilized, attractive bond issuances.”
In April 2020, KA Real Estate raised an opportunistic debt fund, Kayne Anderson Real Estate Opportunistic Debt (KAROD), which capitalized on the market dislocation during the pandemic. The $1.3 billion fund is fully invested as of March 31, 2022. KARED IV’s predecessor fund in the flagship series, KARED III, closed in December 2018, also with $1.3 billion in total commitments. Since inception, KA Real Estate’s debt platform has successfully raised over $7 billion in commitments.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14 billion of real estate AUM (as of 3/31/22) across opportunistic equity, core equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $32 billion alternative investment management firm (AUM as of 3/31/22) with more than 37 years of successful experience in the real estate, renewable and energy infrastructure, energy, credit, and growth capital sectors.