UK’s Bridgepoint nears deal to buy real estate unit in bet on US property
London-based buyout group is looking beyond its traditional speciality in corporate buyouts
UK private capital group Bridgepoint is nearing a deal to buy the real estate arm of US investment firm Kayne Anderson for roughly $1bn, in a big bet by the British buyout group on the US property sector.
Kayne Anderson’s real estate arm has about $22bn of assets under management, with investments in some of the fastest growing parts of the real estate sector including medical offices, senior housing and student accommodation.
The potential deal will provide a significant boost to Bridgepoint’s current assets under management of roughly $98bn, pushing it into a new market of property takeovers and lending to the sector.
Talks between the two investment firms are ongoing and a deal is likely to be announced as soon as Monday provided there are no last-minute snags, according to people familiar with the matter. The deal comprises a cash and stock component and will value Kayne Anderson’s real estate arm at around $1bn, they added.
Since listing its shares in 2021, Bridgepoint has sought to grow its assets and diversify into new markets using acquisitions. In 2024, it acquired energy specialist PE group Energy Capital Partners, just ahead of a surge in power prices stemming from data centre demand, which made such investment groups more valuable.
By adding Kayne Anderson’s property arm, London-based Bridgepoint will further push into US markets and beyond its traditional speciality in corporate buyouts. It has also recently used acquisitions to expand into so-called secondaries investments.
Founded in 1984, Los Angeles-based Kayne Anderson has blossomed into a $43bn asset manager, focusing on real estate, the energy sector, infrastructure investments and credit. A sale of its real estate wing will cut its assets under management in half.
Kayne Anderson Real Estate, which was founded and is led by Al Rabil, has built a specialisation in identifying property markets such as senior housing, where it expects ageing populations will bolster demand for properties, pushing their rents and valuations higher.
Last year, Kayne Anderson struck one of its biggest deals to date, paying $7.2bn to carve out 18mn sq ft of medical office assets out of real estate investment trust Welltower alongside its operating partner Remedy Medical Properties.
Earlier this year it also raised a $5.2bn property investment fund, setting a new fundraising record for the firm.
Bridgepoint and Kayne Anderson did not immediately respond to requests for comment