KKR has raised $4.3bn (€3.7bn) for its latest opportunistic Americas real estate fund.
The global investment firm said the KKR Real Estate Partners Americas (REPA) III, which is dedicated to investments primarily in the US, received strong backing from a diverse group of new and existing global investors, including public pensions, sovereign wealth funds and insurance companies.
The fund was also backed by family offices, high net worth individual investors and other institutional investors.
REPA II, the predecessor fund, completed its fundraising in January 2018 with $2bn in capital commitments. KKR first established a dedicated real estate team and strategy in 2011.
The manager said as of September 2021, REPA III had already committed more than $1bn of capital.
Chris Lee, head of real estate Americas for KKR, said: “More than double the size of our predecessor fund, REPA III demonstrates the enthusiasm our investors have for the current opportunity set in the Americas as well as their confidence in our integrated platform to deliver differentiated absolute and relative investment performance through changing market cycles,”
Justin Pattner, the head of real estate equity in the Americas for KKR, said: “Through our thematic approach and connectivity to KKR’s broad investment platform, we have been able to identify high-conviction investment themes that we have invested behind in scale to generate attractive risk-adjusted returns for our investors.
“We plan to continue this approach as we identify investment opportunities for REPA III.”
Ralph Rosenberg, global head of KKR Real Estate, said: “As we mark this important milestone in our business 10 years after we first launched a dedicated real estate strategy, our real estate platform has evolved to include multiple pools of capital with the ability to transact in scale across the equity and credit risk spectrum.
“We believe that our platform gives us tangible advantages that translate into differentiated outcomes for our collective investors across our multiple products.”
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