Bridgepoint buys Kayne Anderson’s real ​estate business

Bridgepoint said the acquisition would add $22 ​billion of property assets to form a combined group with $117 billion ​of assets spanning private equity, credit, infrastructure and property

British private equity group Bridgepoint has agreed to buy U.S.-based Kayne Anderson’s real ​estate business in a deal valued at around $1.4 billion, it ‌said on Monday, driving its shares up more than 10%.

Bridgepoint said the acquisition, aimed at diversifying its income sources and accelerating international expansion, would add $22 ​billion of property assets to form a combined group with $117 billion ​of assets spanning private equity, credit, infrastructure and property.

The wider ⁠real estate industry has seen a spate of recent deals as ​smaller property investors bulk up to better compete with larger rivals and ​weather higher borrowing costs.

Bridgepoint’s shares rose as much as 12% in early trading. They were last up 9.3% at 0810 GMT.

The deal — valued at about $1.39 billion, including ​debt — comprises $759 million in cash and around 189 million newly issued shares.

Bridgepoint ​expects the deal to boost its earnings per share by a mid-single-digit percentage in ‌2027 ⁠and by more than 20% in 2028, while deepening its U.S. presence.

This marks another major step forward in our strategy to strengthen our position as a leading global middle-market private markets platform, said Raoul Hughes, ​chief executive of Bridgepoint.

​Analysts at ⁠Jefferies said in a note the deal allowed Bridgepoint to cover all major private markets, and that it ​had “earned the right” to do more deals after receiving ​a boost ⁠from its 2024 takeover of Energy Capital Partners.

Kayne Anderson Real Estate invests in sectors including medical office, seniors housing, student housing, multifamily housing and ⁠light industrial ​units across the U.S.