BOCA RATON, Fla. — Investment management firm Bridgepoint Group has entered into an agreement to acquire Florida-based Kayne Anderson Real Estate for roughly $1.4 billion. The deal is scheduled to be completed before the end of this year, subject to shareholder and regulatory approvals.
Founded in 2007, Kayne Anderson Real Estate invests in alternate real estate sectors, including student housing, seniors housing, multifamily and self-storage. The company maintains approximately $22 million in assets under management, including debt.
Since entering the seniors housing space in 2013, Kayne Anderson Real Estate has invested about $5.4 billion across more than 110 senior living communities. Al Rabil, co-founder and CEO of the firm, will continue to guide the business following the transaction.
“We are in the beginning of a super cycle for the alternative real estate sectors on which we focus, and joining together with Bridgepoint provides additional global resources to capitalize on this opportunity and support our continued growth,” says Rabil.
Upon closing of the acquisition, Bridgepoint’s portfolio will total roughly $117 billion in assets under management. The deal will, according to Bridgepoint, mark the addition of commercial real estate as a fifth investment vertical for the company.
“Real estate is a growing private markets asset class, and Kayne Anderson Real Estate has built a leading position as a scaled specialist with an exceptional track record and strong fundraising momentum,” says Raoul Hughes, chief executive at Bridgepoint. “The transaction is highly complementary and immediately accretive.”
Bridgepoint’s advisory team for the transaction includes lead financial adviser Moelis & Co., as well as Goldman Sachs and Simpson Thacher & Bartlett. Evercore provided financial advisory services to Kayne Anderson, and Kirland & Ellis provided legal advisory services to the company.