In an environment of higher interest rates, Bridgepoint Group sees investment opportunities in overlooked segments of the real estate market. The London-based firm, which manages $125 billion in assets, acquired Kayne Anderson Real Estate, an investment firm with more than $22 billion in assets. The deal strengthens Bridgepoint’s U.S. presence and gives it a broad real estate offering, according to CEO Raoul Hughes. Its executives identify medical office space, small-bay industrial properties and selected residential assets as attractive sectors. Higher rates are pressuring indebted owners, reducing valuations and slowing transactions, but could create opportunities for investors with strong sector expertise or the ability to restructure capital structures.
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