Bridgepoint to Acquire Kayne Anderson Real Estate for $1.4B
It's the London-based investment firm's entry into U.S. real estate.
Kayne Anderson Real Estate, the real estate investment arm of Kayne Anderson Capital Advisors, will be acquired by Bridgepoint Group in a $1.39 billion cash-and-stock transaction.
The acquisition includes the totality of Kayne Anderson’s $22 billion real estate portfolio, which is spread across the student housing, senior housing, medical office and light industrial sectors. The deal marks the London-based private investment firm’s first foray into U.S. real estate.
The transaction, if approved by shareholders and regulators, will close at the end of this year. Bridgepoint will pay $759 million in cash for the acquisition, alongside 189 million newly issued company shares. The combined platform will bring Bridgepoint’s total assets under management to $117 billion, spread across the credit, equity, real estate, infrastructure and secondaries sectors.
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Kayne Anderson will operate as Kayne Bridgepoint following the acquisition. Al Rabil, the firm’s co-founder & CEO, will stay in his current role. Company members will also become shareholders in Bridgepoint.
Moelis & Co. served as lead financial advisors to Bridgepoint for the transaction, while Goldman Sachs and Simpson Thacher & Bartlett provided capital markets services and legal counsel, respectively. BNP Paribas, JP Morgan and Morgan Stanley also acted as investment advisors to Bridgepoint.
Evercore was Kayne Anderson’s lead financial advisor, while Kirkland & Ellis provided legal services.
Kayne Anderson’s commitments
The announcement comes just over a month following Kayne Anderson’s closure of its seventh opportunistic equity fund, valued at $5.2 billion.
Since its founding in 2007, the firm has invested more than $9.4 billion in more than 125 student housing properties, alongside $5.4 billion in senior housing assets located across 25 states.
In December of last year, the company sold a three-property portfolio of senior housing properties in Denver to Morgan Stantley Investment Management. The transaction was valued at $305 million.
