Bridgepoint has announced that it will acquire the US firm, Kayne Anderson Real Estate, for approximately $1.39bn.

The offer from the FTSE 250 private investment firm comprises $759m in cash and approximately 189 million newly issued Bridgepoint shares.

Kayne Anderson focuses on specialist sectors benefiting from long-term demographic and supply-side tailwinds, including medical offices, seniors and student housing, multifamily housing and light industrial across the US.

The combination of the British firm and the Florida-headquartered US real estate investment platform is set to result in approximately $117bn of assets under management (AUM), spanning private equity, credit, infrastructure, real estate and secondaries.

Bridgepoint said the transaction executes on its long-term strategy to build a “globally scaled, diversified middle-market private assets platform”, and is set to deepen its presence in the US.

The US firm's scale has a strong record of organic growth, with its latest flagship equity fund, KAREP VII, closing oversubscribed with $5.12bn in commitments, which is nearly double its prior vintage.

Following the announcement, shares in Bridgepoint increased by over 16%.

Chief executive at Bridgepoint, Raoul Hughes, stated: "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. The transaction is highly complementary and immediately accretive.

"Bridgepoint's and Kayne Anderson Real Estate's investor networks have limited overlap, creating attractive opportunities to broaden relationships and enhance fundraising. Adding Kayne Anderson Real Estate creates a more balanced and diversified platform, with around half of our AUM invested in real assets and around half of our management fees generated in the US."

Co-founder and CEO at Kayne Anderson, Al Rabil, added: "For the last 20 years, we have built a scaled real estate platform focused on mission-critical alternative sectors where we believe long-term fundamental tailwinds and operational complexity create compelling investment opportunities. We are in the beginning of a super cycle for the alternative real estate sectors on which we focus, and joining together with Bridgepoint provides additional global resources to capitalise on this opportunity and support our continued growth.

"Importantly, this partnership allows us to preserve our culture and investment approach while continuing to manage the business as we always have. We are deeply grateful to our investors and look forward to building on our long track record of delivering strong risk-adjusted returns."

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