Kayne Anderson Real Estate Partners has closed its third student housing investment fund oversubscribed. Sources told PERE that the real estate arm of Los Angeles-based private equity firm Kayne Anderson Capital Advisors has closed on $750 million in equity commitments for Kayne Anderson Real Estate Partners (KAREP) III.
The opportunistic vehicle closed above its initial target of $700 million. In fact, KAREP III had enough investor interest to close in excess of $1 billion, but the firm decided to limit commitments to its hard cap and had to turn a number of investors away, sources said. Representatives from Kayne Anderson declined to comment.
Launched in January, KAREP III held a first close in excess of $675 million in April. Through the fund, Kayne Anderson sought commitments from high-net-worth individuals, family offices, foundations, endowments and pension plans to target off-campus student housing opportunities in the US. The firm has not yet made any investments on behalf of KAREP III, but sources anticipate the investment period to begin in earnest sometime in the third quarter.
Kayne Anderson’s prior fund, KAREP II, held a final closing of $575 million in October 2011, exceeding its target of $350 million. KAREP II was raised over the course of approximately one year, having held a first close in December 2010.