KKR, the New York-based private equity firm which entered the real estate investment market in 2011, has announced a final closing for its maiden opportunistic fund today.
The firm, which commenced its real estate activities with the hire of ex-Goldman Sachs Real Estate Principle Investment Area executive Ralph Rosenberg, has since invested balance sheet capital in the US and Europe, on a case by case basis, racking up approximately $850 million of equity outlays in the asset class.
With sight of these investments, institutional investors, together with KKR personnel and KKR Financial Holdings, another division of the company, have committed $1.5 billion to its Real Estate Partners America (REPA) Fund, its debut fund which was marketed to investors first in the second quarter of this year. Public and private pension funds, sovereign wealth funds, insurance companies and family offices were among the investor types to back the vehicle.
In a continuation of its current asset by asset investment strategy, the fund will be invested in real estate opportunities including property-level equity, debt, special situations transactions and businesses with significant real estate holdings.
Rosenberg said: “We believe the current market opportunity has the potential to create strong value-driven investment opportunities where we at KKR can leverage our sourcing channels, insights through our industry groups and portfolio companies and operating capabilities to create differentiated investment opportunities for our limited partners.”