Kayne Anderson capitalized on investors’ growing appetite for alternative assets to close the largest fundraise in its history.

Kayne Anderson Real Estate, the real estate private equity arm of Kayne Anderson Capital Advisors, formally closed its seventh fund with $5.12B in capital raised, 70% ahead of its $3B target.

The fund will focus on medical office, senior housing, student housing and light industrial assets, which CEO Al Rabil said were positioned for explosive growth.

“This is the beginning of a super cycle for the alternative real estate sectors on which we focus and we are grateful for the continued support from both existing and new investors,” Rabil said in a statement Friday.

Kayne Anderson Real Estate Partners VII launched in August 2024 and had attracted roughly $4B in cash and commitments by the end of 2025. The record-breaking fundraise announced Friday replaces Kayne Anderson’s previous $2.75B record from the last iteration of its real estate partners fund.

It’s one of several funds looking to capitalize on demographic trends to drive returns, betting that an aging population of baby boomers will propel demand for senior housing and medical offices.

Fortress Investment Group in March launched a 1031 exchange fund targeting senior living, while funds associated with Blue Owl Capital are set to spend $2.4B to take net lease healthcare REIT Sila Realty Trust off the stock market.

Boca Raton, Florida-based Kayne Anderson’s latest fund will also invest in student housing and light industrial assets, according to a release. The industrial focus will be on last-mile logistics facilities used by e-commerce companies, Bloomberg reported.

“We remain focused on our mission critical alternative sectors where we believe long-term fundamental tailwinds and operational complexity create compelling investment opportunities for our differentiated investment platform,” Rabil said.

Kayne Anderson Real Estate is an alternatives-focused investor with nearly $21B in assets under management, including debt. The firm has completed over $38B in gross transaction volume since inception, with roughly 85% of deals running through its opportunistic equity strategies business line.

The firm became the largest owner of U.S. outpatient medical office space in October when it partnered with Remedy Medical Properties to take over a portfolio from Welltower in a $7.2B deal, according to Bloomberg. Welltower, another giant healthcare REIT, sold the properties as part of a pivot to focus on senior housing.

Healthpeak Properties also split its senior housing and medical office operations in March with the initial public offering of Janus Living, a REIT that debuted with a 34-community portfolio in which Healthpeak is holding on to a roughly 84% ownership stake.