Institutional investors are being more selective about where they allocate capital, according to Al Rabil, CEO of Kayne Anderson Real Estate. As an example, he points to the fundraising process for the $5.12 billion final close of Kayne Anderson Real Estate Partners VII (KAREP VII).
“The strong demand for KAREP VII indicates that institutional investors are not stepping away from real estate,” says Rabil. “In the current environment, investors are looking for strategies tied to durable demand drivers, attractive long-term fundamentals and managers with sector expertise.”
For Kayne Anderson, that demand reflected continued investor conviction in medical office, seniors housing, student housing and light industrial — sectors Rabil says are supported by long-term structural trends and are less depend
