Uk-based Private Equity Firm Bridgepoint Acquiring Kayne Anderson Real Estate

Private equity firm Bridgepoint Group (LSE: BPT) is acquiring Kayne Anderson Real Estate and its platform is valued at over $1.39 billion.

On Monday, London-based Bridgepoint announced plans to acquire Kayne Anderson Real Estate and create a combined private equity, credit, infrastructure and real estate platform with $22 billion in assets under management. 

Kayne Anderson has through a series of funds helped raise billions of dollars deployed into the senior living industry in recent years. Since 2013, Kayne Anderson Real Estate has invested in over 110 private-pay senior living communities spanning 25 states and more than 15,000 units, according to the company’s website.

“Bridgepoint’s and Kayne Anderson Real Estate’s investor networks have limited overlap, creating attractive opportunities to broaden relationships and enhance fundraising,” said Bridgepoint CEO Raoul Hughes in a news release. “Adding Kayne Anderson Real Estate creates a more balanced and diversified platform, with around half of our AUM invested in real assets and around half of our management fees generated in the U.S.”

This planned acquisition carries an upfront enterprise value of approximately $1.39 billion, made up of $759 million in cash and 189 million newly issued Bridgepoint shares. Going forward, Kayne Anderson Real Estate’s leadership and investment team, led by Al Rabil, will continue to manage the combined company under the Kayne Bridgepoint brand. Rabil is the CEO of Kayne Anderson and co-founder and CEO of Kayne Anderson Real Estate.

“We are in the beginning of a super cycle for the alternative real estate sectors on which we focus, and joining together with Bridgepoint provides additional global resources to capitalize on this opportunity and support our continued growth,” Rabil said in the news release. “Importantly, this partnership allows us to preserve our culture and investment approach while continuing to manage the business as we always have.”

The acquisition plan “marks a significant step forward” for Bridgepoint’s ongoing strategy to become a “globally scaled and diversified middle-market private markets platform,” the news release states, and the effort intends to add real estate as a fifth investment strategy. It also expands Bridgepoint’s presence in the U.S.

The combined company will operate across Europe and the U.S., giving it broader exposure to industries and markets. Kayne Anderson Real Estate also adds more than 115 institutional investor relationships with limited overlap between the firms’ limited partner bases

The senior housing portion of its investment portfolio totals $5.4 billion since inception, according to the firm’s website. Its other investments include medical office, student housing, attainable housing, real estate debt, alternative core and opportunistic equity.

In May, Kayne Anderson Capital Advisors closed its largest-ever fund, totaling more than $5 billion, with senior living as a target area for investment. It is the largest equity fund in the company’s history and nearly doubled the company’s $2.75 billion 2021 fund.

Earlier this month, Kayne Anderson Real Estate announced a recapitalization deal with Tradition Senior Living spanning a five-property portfolio of Class A luxury communities in Texas. Over the years, Kayne Anderson Real Estate also established relationships with Discovery Senior Living, the largest privately held senior living operator in the country, and Liberty Senior Living.

Kayne Anderson continues to invest in senior living because need-driven demand is rising as Baby Boomers age while new development remains limited.

The transaction is expected to be completed at the end of this year and is subject to shareholder and regulatory approvals.

The post UK-based Private Equity Firm Bridgepoint Acquiring Kayne Anderson Real Estate appeared first on Senior Housing News.