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Kayne Anderson raises largest fund to date at $1bn-plus

The specialized private equity real estate firm based in Boca Raton, Florida, has closed its latest commingled fund, KAREP IV, exceeding its target size in just eight months.

Kayne Anderson Real Estate Advisors, the Boca Raton, Florida-based firm that specializes in niche property sectors, has closed its latest fund with commitments above $1 billion – its largest to date.

The franchise, which is part of the $28 billion alternatives investment firm, Kayne Anderson Capital Advisors, took just eight months to close out its fourth fund, Kayne Anderson Real Estate Partners IV (KAREP IV), with investors being a mix of institutional investors, foundations, family offices and high net worth individuals. 

PERE revealed last July how the company had launched the successor to Fund III which closed on $750 million in May 2013, though the company experienced strong enough demand to have enlarged that KAREP IV.

“We are extremely pleased with the strong support from our new and existing partners, which allowed us to quickly reach our fundraising target,” said Al Rabil, managing partner and chief executive officer, in a statement.

He added the group continued to see “exciting opportunities” to invest in niche sectors of the real estate market.

Kayne Anderson is putting commitments in KAREP IV to work in sectors such as medical office buildings, senior housing and off-campus student housing.

The firm's current portfolio includes more than 2.5 million square feet of medical office space and approximately 3,500 senior housing beds and 20,000 student housing beds. In October 2013, Kayne Anderson made news with its first move into the senior housing market. The firm purchased the Aston Gardens senior housing portfolio with operator and developer Discovery Management Group, buying out Discovery’s existing partner in the portfolio for approximately $413 million.

For more on Kayne Anderson make sure to read the forthcoming June issue of PERE magazine