Kennedy Wilson Gets £500M For Fresh Real Estate Lending Drive
Private equity firm Kennedy Wilson has secured an influx of new funds from an institutional investor to grow its property lending business.
The expansion comprises a $700M (£504M) debt investment platform that will target loans secured by real estate in the UK and Europe. The new investment takes its total lending business today to more than $3B in the U.S. and Europe.
Kennedy Wilson has typically been known for its opportunistic and value-add investment business, but along with other private equity firms like Blackstone, Brookfield and Europa Capital, it has moved into the lending sector in an attempt to diversify its income sources and produce lower returns that come with reduced risk.
Kennedy Wilson has $18B of real estate assets under management globally, which it said gave it the ability to be a better lender.
“We are therefore able to track industry and financing trends across multiple asset classes in real time within markets where we benefit from meaningful relationships and a strong local presence,” Kennedy Wilson Head of Investment Europe Fiona D’Silva said.
Kennedy Wilson said it expects to put about 5% to 10% of its own money into the loans it makes across its global debt platform and earn customary management fees in its role as investment manager.
The platform will provide financing solutions across the capital structure and risk spectrum. Together with its partners, Kennedy Wilson has completed approximately $7B in real estate-related debt investments since 2010, including $4.3B across Europe.