Bridgepoint Group (LSE:BPT), the London-listed private markets investor, has agreed to acquire Kayne Anderson Real Estate, a US specialist real estate manager, in a deal with an upfront enterprise value of $1,393 million.
The cash consideration of $759 million will be funded through a combination of existing balance sheet cash and available credit facilities, with the remainder structured around equity consideration to certain sellers and management, subject to management fee-related hurdles.
Kayne Anderson Real Estate manages approximately $22 billion in assets across specialist US sectors including medical office, seniors housing, student housing and light industrial, focusing on markets it says benefit from demographic tailwinds and high barriers to entry.
The deal is the fourth platform-building acquisition Bridgepoint has executed since its IPO, following EQT Credit, Energy Capital Partners and Newbury Partners, and brings combined pro forma AUM to $117 billion across five verticals: private equity, credit, infrastructure, real estate and secondaries.
The transaction is expected to be mid-single-digit earnings per share accretive in 2027 and more than 20% accretive in 2028, with Bridgepoint guiding to a combined EBITDA compound annual growth rate in excess of 30% and margins trending above 60%.
"The Transaction is highly complementary and immediately accretive," said Raoul Hughes, Bridgepoint's chief executive, noting that the two firms' investor bases have overlap, with more than 115 new institutional partner relationships joining the platform.
The acquisition constitutes a significant transaction under UK Listing Rules, requiring shareholder approval via a circular to be published in due course.
