BOCA RATON, Fla. — Kayne Anderson Real Estate, the real estate investment arm of private equite firm Kayne Anderson Capital Advisors, has closed its latest at an oversubscribed level of nearly $1.9 billion.
The fund, Kayne Anderson Real Estate Debt IV (KARED IV), is run through the company’s debt platform KA Real Estate Debt. 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 industry relationships 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, student housing, medical office, seniors housing and self-storage.
“As real estate markets continue to respond to market dislocation, lending standards remain historically conservative, particularly in niche asset classes,” says David Selznick, chief investment officer, Kayne Anderson 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.