Bridgepoint has agreed to acquire Kayne Anderson’s real estate business in a deal valued at around $1.4bn, as the firm looks to diversify its earnings and expand its international footprint, according to a report by Reuters.

The acquisition will add around $22bn of real estate assets, taking Bridgepoint’s total assets under management to approximately $117bn across private equity, credit, infrastructure and property.

The transaction comprises $759m in cash and around 189m newly issued Bridgepoint shares, with the total value including debt. Bridgepoint said it expects the deal to increase earnings per share by a mid-single-digit percentage in 2027 and by more than 20% in 2028.

Shares in Bridgepoint rose as much as 12% in early trading on Monday following the announcement.

Raoul Hughes, chief executive of Bridgepoint, said the transaction marked “another major step forward” in the firm’s strategy to build a leading global middle-market private markets platform.

Kayne Anderson Real Estate invests across US property sectors including medical offices, seniors housing, student housing, multifamily housing and light industrial assets.