Largest-Ever Kayne Anderson Debt Fund Closes at $1.9B, Targets Senior Housing

Kayne Anderson Capital Advisors has closed its fourth flagship debt fund, with $1.875 billion in capital commitments.

The fund, Kayne Anderson Real Estate Debt IV (KARED IV), is the company’s largest debt fund to date. It’s aimed at proprietary investment opportunities in a variety of real estate asset classes, including senior living.

The fund will target opportunities in Freddie Mac structured products, direct loan originations and purchases. In addition to senior living, the fund will also cover multifamily, student housing, medical office and self-storage facilities.

“KARED IV is well-positioned to provide liquidity for borrowers while continuing to leverage the firm’s longstanding relationship with Freddie Mac to source and acquire stabilized attractive bond issuance,” Kayne Anderson Real Estate CIO David Selznick said in a press release on the fund.

Kayne Anderson declined to elaborate on its plans for KARED IV, including how much will be spent on senior living.

The most recent debt fund surpassed its original goal of $1.5 billion, and is the fourth flagship fund created by Kayne Anderson Real Estate, which is the real estate investment arm of Kayne Anderson Capital Advisors.

Last November, Kayne Anderson Capital Advisors closed the largest fund in the company’s history, at $2.75 billion.

Kayne Anderson Real Estate in April also raised an opportunistic debt dubbed Kayne Anderson Real Estate Opportunistic Debt (KAROD) in 2020. As of March 31, the $1.3 billion fund is fully invested, according to the company.

KARED IV’s predecessor fund, KARED III, closed in December 2018. It also included $1.3 billion in total commitments. Since its founding, Kayne Anderson Real Estate’s debt platform has raised over $7 billion in commitments.

With $14 billion under management, Kayne Anderson’s investment in senior living encompasses at least 17,000 units including Brooklyn Heights – a 275-unit luxury community in New York City.

Brooklyn Heights opened in 2020 after a $330 million redevelopment project and is operated by Watermark Retirement.

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