Kayne Anderson Real Estate, the real estate private equity arm of Kayne Anderson Capital Advisors, has held a final close for its fifth opportunistic fund, Kayne Anderson Real Estate Partners V (KAREP V), at its hard cap of $1.8 billion.
The fund is the firm’s largest to date and includes capital commitments from a diverse group of investors including institutions, high-net-worth individuals and family offices. Some of these investors include the Texas Permanent School Fund, which committed $75 million to the Kayne fund; the Arkansas Teacher Retirement System, which committed $25 million; and the Employees’ Retirement System of the State of Hawaii, which committed $50 million.
KAREP V will invest in opportunities across seniors housing, medical office and student housing.
The predecessor fund in the series, Kayne Anderson Real Estate Partners IV, held a $1 billion final close in 2015, reaching its fundraising target.
Al Rabil, co-founder, managing partner and CEO of Kayne Anderson Real Estate said the firm focuses investments on undermanaged and undervalued assets in sectors affected by the aging U.S. population. “Much as we had a first-mover advantage in student housing 10 years ago, we see the same opportunity in seniors housing and medical office today.”
To date, KAREP V has deployed more than 20 percent of its capital.
Kayne Anderson Real Estate has a current portfolio of more than 12 million square feet of medical office space, approximately 10,500 seniors housing units and 4,500 student housing beds.