LONDON AND BOCA RATON, FLA. — Bridgepoint Group, a private-sector investment management firm based in London, has entered into an agreement to acquire South Florida-based owner-operator Kayne Anderson Real Estate in a deal valued at roughly $1.4 billion.
To fund the transaction, Bridgepoint plans to pay $759 million in cash and issue roughly 189 new shares of its common stock at an undisclosed price. The deal is expected to close before the end of the year, subject to shareholder and regulatory approvals. Upon closing, Bridgepoint’s assets under management will total roughly $117 billion across all verticals.
According to Bridgepoint, the deal allows the British company to add commercial real estate as a fifth investment vertical to its platform, thus diversifying its holdings and expanding its presence in U.S. markets. The deal also positions nearly half of Bridgepoint’s portfolio to be comprised of real assets.
Kayne Anderson Real Estate maintains about $22 million in assets under management, inclusive of debt, across commercial verticals such as multifamily (including seniors and student housing), healthcare and industrial. Upon closing, CEO Al Rabil will continue to lead and guide the business.
“For the last 20 years, we have built a scaled real estate platform focused on mission-critical alternative sectors where we believe long-term fundamental tailwinds and operational complexity create compelling investment opportunities,” says Rabil. “We are in the beginning of a super cycle for the alternative real estate sectors on which we focus, and joining together with Bridgepoint provides additional global resources to capitalize on this opportunity and support our continued growth.”
“This marks another major step forward in our strategy to strengthen our position as a leading global middle-market private markets platform,” adds Raoul Hughes, chief executive at Bridgepoint. “Real estate is a growing private markets asset class, and Kayne Anderson Real Estate has built a leading position as a scaled specialist with an exceptional track record and strong fundraising momentum. The transaction is highly complementary and immediately accretive. Bridgepoint’s and Kayne Anderson Real Estate’s investor networks have limited overlap, creating attractive opportunities to broaden relationships and enhance fundraising.”
Moelis & Co. is acting as lead financial adviser to Bridgepoint, whose team also includes Goldman Sachs (capital markets advisor) and Simpson Thacher & Bartlett (legal advisor). BNP Paribas, JP Morgan and Morgan Stanley are acting as joint corporate brokers to Bridgepoint. Evercore and Kirkland & Ellis provided financial and legal advisory services to Kayne Anderson, respectively.
- Taylor Williams