Kayne Anderson Closes $1.9B Debt Fund

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Kayne Anderson Real Estate has surpassed its initial $1.5 billion target for its fourth debt fund. The firm, through its debt platform KA Real Estate Debt, closed Kayne Anderson Real Estate Debt IV (KARED IV) at nearly $1.88 billion in capital commitments.

The commitments came from a diverse group of new and existing investors, according to Kayne Anderson Real Estate. Al Rabil, co-founder & CEO of Kayne Anderson Real Estate, said in prepared remarks that KARED IV is the firm’s largest debt fund to date.

KARED IV will be looking for investment opportunities in Freddie Mac structured products, focusing on loan originations and purchases across the multifamily, student housing, medical office, senior housing and self-storage sectors. David Selznick, CIO for Kayne Anderson Real Estate, said in prepared remarks that the fund will be able to provide liquidity to borrowers, while taking advantage of the firm’s long standing relationship with Freddie Mac to source and acquire stabilized, attractive bond issuances. The firm didn’t disclose if the fund has dispersed any of its capital to any projects yet.

BILLIONS IN DEBT AND EQUITY FUNDS

Prior to KARED IV, the firm closed the third fund of its debt platform called KARED III with $1.3 billion in commitments in December 2018. Kayne Anderson Real Estate also raised another $1.3 billion for its opportunistic debt fund, called the Kayne Anderson Real Estate Opportunistic Debt, in April 2020. The firm said it has fully invested all of the opportunistic fund as of March of this year.

In total, Kayne Anderson Real Estate’s debt platform raised more than $7 billion in commitments. Outside of its debt funds, Kayne Anderson Real Estate also has a longstanding opportunistic equity fund series. The latest equity fund from the firm, Kayne Real Estate Partners VI LP, raised $2.75 billion in capital commitments after closing in November.