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Largest-Ever Kayne Anderson Fund Closes at $2.75B, Senior Housing a Goal

Share this…FacebookPinterestTwitterLinkedin Kayne Anderson Capital Advisers closed the most important fund in its historical past with plans to focus on…

By Staff , in Senior Living , at November 16, 2021

Kayne Anderson Capital Advisers closed the most important fund in its historical past with plans to focus on senior housing together with medical workplace and scholar housing in its general technique.

The opportunistic fairness fund closed at $2.75 billion in capital investments, surpassing the $2 billion goal set by the agency and the $2.5 billion estimates beforehand reported by Senior Housing Information and different shops.

The fund, known as KAREP VI, is the corporate’s sixth such opportunistic fairness fund. It’s considerably oversubscribed after robust help from present traders in addition to important curiosity from new traders.

Kayne Anderson Actual Property, the actual property arm of Kayne Anderson, plans to spend half of the fund on medical places of work, in keeping with an earlier report from the Wall Road Journal. That would go away the remaining capital accessible for scholar housing and senior housing.

“The mix of an growing older U.S. inhabitants and accelerating enrollments point out robust development traits throughout every asset class,” mentioned the assertion.

In terms of senior housing, Kayne Anderson plans to stay with the technique that it is aware of finest. That technique revolves round relationships with operators resembling Watermark Retirement and Discovery Senior Residing.

“We’ve got a handful of key operators that we work with, and we’re not trying to develop that secure way more into [this fund],” Managing Director Max Newland instructed SHN in <<insert month/12 months>>.

So far, Kayne Anderson’s funding in senior housing has netted greater than 17,000 models. Of these models, 275 are on the Brooklyn Heights luxurious senior residing group in New York Metropolis.

Watermark operates the Brooklyn Heights highrise, which opened roughly 13 months in the past after a $330 million redevelopment that turned the Leverich Towers Resort right into a luxurious group.

“I’ve labored in some very nice, luxurious communities,” mentioned Rocco Bertini, govt director of The Watermark at Brooklyn Heights. “Palms down, that is [like] a five-star lodge.”

Past its operator relationships, Kayne cites its “distinctive” sourcing community and powerful financing as causes that it may possibly deploy capital to construct on its present portfolio.

That portfolio consists of the 34 properties bought from Welltower in August 2020 for about $1 billion; seven of that are senior housing properties in Florida, as reported by SHN.

Different non-public fairness corporations with observe information in senior housing even have raised giant funds just lately. Final month, Harrison Road closed on a $2 billion fund and KKR closed on a $4.3 billion fund.

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