Kinetic Capital announces GBP200m PBSA Investment Programme with StepStone Group

Kinetic Capital (Kinetic), a specialist in the purpose-built student accommodation (PBSA) sector, has launched an investment programme with StepStone Real Estate (SRE) who will provide capital to target at least GBP200 million of purpose-built student accommodation (PBSA) loans across the UK and Ireland. 

SRE is a part of StepStone Group Inc. (Nasdaq: STEP), a global private markets firm that oversaw approximately USD427 billion of private capital allocations as of 31 March 2021.
 
This Investment Programme marks Kinetic’s first capital raise since launching its fund last year with a GBP100 million initial commitment. The Investment Programme will continue to focus on providing market-leading financing solutions to PBSA owners, developers and operators across key higher-education markets in the UK and Ireland, covering a range of deal sizes and loan types. 
 
The transaction delivers on Kinetic’s strategic ambition to raise new capital from leading institutional partners, demonstrating the attractive attributes of its specialist lending solutions, and underpinned by the continued growth and resilience of the PBSA sector and demand for higher education.
 
Steve Grant—Chief Executive Officer, Kinetic Capital, says: “We’re really pleased to close this investment programme with such a high quality partner and will look to deploy this capital efficiently into our strong pipeline of investment opportunities with leading sponsors. All of our loans continue to include our unique ESG incentives, targeting initiatives to support the mental health and wellbeing of student residents. We are also now looking to expand our geographical focus, building upon years of experience in a number of major European PBSA destinations, and hope to close our first investments in mainland Europe over the coming months.”
 
Josh Cleveland—Partner and Head of EMEA for Real Estate, SRE, says: “We’re delighted to be partnering with Kinetic and benefitting from their expertise as a leading PBSA debt provider in this space. Establishing this investment programme provides us with exposure to this attractive asset class that has performed strongly through the cycle. Kinetic’s sector specialisation and track record were also a compelling draw for us, coupled with its innovative focus on ESG incentives for borrowers. We look forward to working together longer term as this investment programme progresses.”