Kayne Anderson Real Estate Partners V (KAREP V) has achieved its $1.8bn (€1.54bn) fundraising target, the fund’s manager has confirmed.
Last month, IPE Real Assets reported that KAREP V was close to achieving its ‘hard cap’ of $1.8bn.
Kayne Anderson Real Estate said it has closed its fifth opportunistic equity fund, KAREP V, at its hard cap, exclusive of capital from the general partner and its affiliates.
KAREP V, which was substantially oversubscribed, is Kayne Anderson’s largest to date and includes capital commitments from a diverse group of investors, it said.
As previoulsy reported, San Bernardino County Employees’ Retirement Association and Texas Permanent School Fund (PSF) have both invested in the fund.
KAREP V expects to target opportunities across seniors housing, medical office and student housing.
The fund is targeting net returns of 18% and a 10% current yield, and uses what it determines to be best-in-class operating partners for any given sector.
The manager said KAREP V has so far deployed more than 20% of the fund.
Al Rabil, the co-founder, managing partner and CEO of Kayne Anderson Real Estate, said “We are grateful for the support of our new and existing Limited Partners.
The significant interest in KAREP V is a testament to our unique investing strategy, bringing operational expertise to undermanaged and undervalued assets in sectors affected by the aging of the US population, the CEO said.
“Much as we had a first-mover advantage in student housing 10 years ago, we see the same opportunity in seniors housing and medical office today and are poised to continue to generate meaningful value for both our investors and the communities we serve.”