Kayne Anderson, a private equity firm, has successfully closed the first round of funding for its new venture, a $1.53 billion flagship opportunistic fund. This fund, known as Kayne Anderson Real Estate Partners VII, aims to raise a total of $3 billion, focusing on senior living communities among other property types such as student housing and medical offices.
According to reports from PERE News, the firm is on track to achieve an internal return rate of 15% to 18% and plans to finalize the fund in the first half of next year. The fund is anticipated to be one of the largest in the market targeting multiple non-traditional sectors, with a projected spin-up period of 18 to 24 months.
Kayne Anderson has a history of supporting significant funds, like the $1.9 billion fund launched in 2022 that also focused partly on senior housing. In the senior living M&A landscape, distress remains a key driver in 2024 as industry players navigate challenges related to interest rates. However, there are hopes for relief with potential interest rate cuts on the horizon.
