Kayne Anderson holds $675m first close on third fund

The Armonk, New York-based firm’s latest opportunistic vehicle, which will target US student housing investments, is anticipated to close oversubscribed after launching earlier this year.

Kayne Anderson Real Estate Partners has held a first close on its third real estate fund, PERE has learned. 

Sources have confirmed that the real estate arm of Los Angeles-based private equity firm Kayne Anderson Capital Advisors has garnered commitments in excess of $675 million on behalf of its Kayne Anderson Real Estate Partners (KAREP) III. The fund is seeking commitments from high-net-worth individuals, family offices, foundations, endowments and pension plans. Representatives from Kayne Anderson declined to comment.

Since the opportunistic vehicle also has received some soft commitments as well, it is anticipated that KAREP III, which was launched earlier this year, will close above its $700 million target. A final close for the fund, which will target off-campus student housing opportunities in the US, is expected sometime this quarter.

Kayne Anderson’s prior fund, KAREP II, held a final closing of $575 million in October 2011, exceeding its initial target of $350 million. KAREP II was raised over the course of approximately one year, having held a first close in December 2010. Kayne Anderson still is investing on behalf of KAREP II, which is expected to be fully invested by the third quarter.