Kayne Anderson Closes Third Fund at $750 Million

by Katie Sloan

Armonk, N.Y. — The firm, which focuses on specialized real estate sectors, says this fund was oversubscribed, with a diverse investor base.

Armonk, N.Y. — Kayne Anderson Real Estate Advisors (KAREA) has closed its third fund, Kayne Anderson Real Estate Partners III (KAREP III) at $750 million. The fund was significantly oversubscribed, exceeding its initial target of $700 million, and closed at its $750 million hard cap within five months of its launch, KAREA says. The fund’s investor base includes a diverse mix of institutional investors, foundations, family offices and high-net worth individuals. KAREA is the private equity real estate arm of Kayne Anderson Capital Advisors, an asset management firm with approximately $21 billion of assets under management as of April 30, 2013.


“We’re very grateful for the strong support we’ve received from our investors and our partners at Kayne Anderson Capital Advisors,” said Al Rabil, Managing Partner and CEO of Kayne Anderson Real Estate Advisors. “The strong response to our fund and our ability to raise it so quickly underscores investors’ confidence in our team and strategy to continue to produce best in class returns.”


As a whole, KAREA’s current portfolio includes approximately 16,000 student housing beds (5,400 units), 444 conventional multifamily units and 15,065 self-storage units. Throughout the last year, KAREA sold 23 of its assets, 20 of which were included in the largest private sale of a student housing portfolio in history for $862.8 million.



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