Private equity company KKR & Co LP said on Tuesday it had raised a $1.5 billion real estate fund, its first dedicated investment pool for the asset class, which is rebounding in the United States amid a modest economic recovery. Investors are seeking to capitalize on the growing demand for commercial real estate space as U.S. industries slowly recoup job losses after the recession. Jones Lang LaSalle Inc expects 10 percent growth of global investment volume year-over-year in commercial real estate to $550 billion in 2014, with a lot of these gains coming from the United States.The U.S. housing market has also strengthened this year by employment gains and favorable financing, though a run-up in mortgage interest rates and the Federal Reserve's gradual tightening of monetary policy are expected to moderate the sector's growth in 2014.The fundraising environment for first-time fund managers has been increasingly challenging in recent years. Managers raising their first investment vehicle accounted for only 5 percent of the capital raised in private real estate in 2013, market research firm Preqin said earlier this month.KKR said the inaugural fund, dubbed KKR Real Estate Partners Americas LP, would invest in North America and Western Europe. Investors contributed $1.2 billion to the fund, with the rest coming from KKR staff and its specialty finance company, KKR Financial Holdings LLC.
Jones Lang LaSalle Incorporated (Jones Lang LaSalle) is a financial and professional services firm specializing in real estate. Shares of JLL fell by 0.16% or $-0.16/share to $101.81. In the past year, the shares have traded as low as $80.86 and as high as $102.14. On average, 342991 shares of JLL exchange hands on a given day and today's volume is recorded at 73886.
KKR Financial Holdings LLC is a specialty finance company focused on a range of asset classes. Shares of KFN traded higher by 0.12% or $0.0145/share to $12.19. In the past year, the shares have traded as low as $8.91 and as high as $12.39. On average, 2035070 shares of KFN exchange hands on a given day and today's volume is recorded at 584968.
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