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Bridgepoint Real Estate Just Made a $1.4 Billion Bet on America But Is It a Power Move or a Desperate Grab?
British private equity giant Bridgepoint has agreed to acquire Kayne Anderson Real Estate in a $1.4 billion deal, lifting the firm to $117 billion in combined assets. But with borrowing costs still pressuring commercial property, Is this a smart expansion or a risky bet? British private equity heavyweight Bridgepoint has made a major move into the American property market, agreeing to buy Kayne Anderson Real Estate in a deal worth about $1.4 billion. The acquisition marks one of the firm’s biggest steps yet and shows its ambition to claim a larger share of the world’s most competitive real estate market. The deal will bring Kayne Anderson’s U.S. property investment arm into Bridgepoint’s portfolio, creating a combined platform with $117 billion in assets across private equity, credit, infrastructure, and Bridgepoint Real Estate. Can a European firm really win in the tough U.S. property market? Investors seem to think so. Bridgepoint shares rose as much as 12% in early trading before settling around 9.3% higher, a sign that the market sees real value in the move. The transaction, valued at roughly $1.39 billion including debt, will be financed with $759 m...
