Bridgepoint Group has agreed to acquire Kayne Anderson Real Estate, marking the British investment firm's entrance into U.S. commercial real estate investing.
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The agreement values Kayne Anderson at nearly $1.4B, according to a statement shared with investors. Bridgepoint will pay $759M in cash and issue approximately 189 million of new shares under the deal.
Headquartered in Boca Raton, Florida, Kayne Anderson has $22B in assets under management across equity and debt. It specializes in niche property sectors, including medical offices, senior and student housing, and light industrial properties.
In its announcement, Bridgepoint highlighted Kayne Anderson’s latest flagship fund, KAREP VII, which raised $5.1B — 70% ahead of its $3B target and nearly double the size of its predecessor.
“We are in the beginning of a super cycle for the alternative real estate sectors,” Kayne Anderson CEO Al Rabil said in a statement. “Joining together with Bridgepoint provides additional global resources to capitalise on this opportunity.”
Rabil and Chief Investment Officer David Selznick will stay on to manage the real estate business.
Following the closing, Bridgepoint Group is expected to have $117B of AUM consisting of $40B in private equity, $22B in real estate, $21B in credit, $30B in infrastructure and $4B in secondaries.
The transaction is anticipated to make real assets approximately 45% of the company's AUM, up from around one-third. Bridgepoint expects 42% of its management fees to be generated in the U.S. after closing.
The acquisition is projected to boost the company’s earnings per share by a mid-single-digit percentage in 2027 and over 20% in 2028.
Bridgepoint's stock price leaped more than 17% Monday morning following the announcement. Bridgepoint Chief Executive Raoul Hughes said in a statement the deal, which is expected to close by the end of the year, “is highly complementary and immediately accretive.”
“Bridgepoint's and Kayne Anderson Real Estate's investor networks have limited overlap, creating attractive opportunities to broaden relationships and enhance fundraising,” Hughes said.
The deal adds to a wave of consolidation occurring in the commercial real estate sector as asset managers race to bulk up their holdings. REITs, many of which have claimed to be undervalued, have become a particular target for private investors.
Since 2020, Bridgepoint has also acquired EQT Credit, Energy Capital Partners and Newbury Partners. It was listed on the London Stock Exchange in July 2021.
