Bridgepoint Group PLC (LSE:BPT) agrees to acquire Kayne Anderson Real Estate for $1.39 billion, adding a real estate vertical and lifting combined AUM to $117 billion.
Shares in Bridgepoint Group rose sharply on Monday after the London-listed private markets firm agreed to acquire US real estate platform Kayne Anderson Real Estate for an upfront enterprise value of $1.39 billion, a deal that adds a fifth investment vertical and materially deepens its presence in the United States.
Bridgepoint shares are trading at 257.2p in Monday morning trade, up 10.6% from Friday’s close of 232.6p, with an intraday high of 260.8p. The stock remains well below its 52-week high of 355.2p reached in August 2025.
WELCOME BONUS – Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
Open Account
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
The Deal
Bridgepoint agreed to acquire Kayne Anderson Real Estate (KARE) from Kayne Anderson Capital Advisors for $759 million in cash, to be funded from existing balance sheet resources and available credit facilities, and approximately 189 million newly issued Bridgepoint shares, with the equity portion valued at approximately $634 million. The deal establishes real estate as a fifth vertical alongside private equity, credit, infrastructure and secondaries, lifting combined assets under management to $117 billion on a pro forma basis.
KARE manages $22 billion in assets from its Boca Raton, Florida base, focused on specialist sectors including medical office, seniors housing, student housing, multifamily and light industrial. Its latest flagship fund, KAREP VII, closed in May 2026 with $5.12 billion in commitments, nearly double its predecessor, and the platform has grown AUM at approximately 20% per year since 2019.
The transaction is expected to increase US-domiciled management fees from 28% to 42% of total income for the enlarged group. Fee-related earnings are projected at approximately 60% of EBITDA for the combined entity, against roughly 50% for Bridgepoint standalone. Bridgepoint expects the deal to be mid-single digit earnings per share accretive in 2027 and more than 20% accretive in 2028. Alongside the announcement, Bridgepoint raised its standalone EBITDA guidance for the twelve-month period ending 31 December 2027 to between £390 million and £460 million.
The acquisition follows Bridgepoint’s stated strategy to build a globally scaled private markets platform, building on earlier acquisitions of EQT Credit, Energy Capital Partners and Newbury Partners. KARE will operate under a new Kayne Bridgepoint brand, with co-founder and chief executive Al Rabil and chief investment officer David Selznick remaining in place. Bridgepoint said the deal adds more than 115 new institutional investor relationships, with limited overlap between the two firms’ existing investor bases.
“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,” said Raoul Hughes, chief executive of Bridgepoint.
Closing is expected at the end of 2026, subject to regulatory approvals, shareholder approval for the allotment of new shares, and consents from KARE fund investors. If completed as planned, Bridgepoint would become a $117 billion AUM platform across five verticals, with approximately 45% of combined AUM in real assets.
Leave a comment