Kayne Anderson Capital Advisors LP and NewRoad Capital Partners LLC said April 7 they have partnered to form Kayne NewRoad Ventures Fund II LP. KNRVF II will invest in early-stage, technology-enabled businesses within retail and other large growth opportunities. The fund has received $90 million in total commitments from investors in NewRoad Ventures Fund I, the Arkansas Venture Development Fund, other local Northwest Arkansas-based investors, and Kayne Anderson’s high net worth and family office clients. Kayne and NewRoad are co-managing KNRVF II.
April 07, 2016 10:33 AM Eastern Daylight Time
LOS ANGELES & BENTONVILLE, Ark.–(BUSINESS WIRE)–Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”) and NewRoad Capital Partners, LLC (“NewRoad”) have partnered to form Kayne NewRoad Ventures Fund II, L.P. (“KNRVF II” or the “Fund”). The Fund will build on the success of NewRoad Ventures by continuing to partner with experienced management teams in early-stage, technology-enabled businesses within retail and other large growth opportunities. The Fund will also seek strategic opportunities to create demand-driven businesses to serve existing, unmet needs in the marketplace through its strategic partners and unique sourcing capabilities. KNRVF II has received total commitments of $90 million from investors in NewRoad Ventures Fund I, the Arkansas Venture Development Fund, other local Northwest Arkansas-based investors, and Kayne Anderson’s high net worth and family office clients.
“The State of Arkansas is excited by the partnership formed between Kayne Anderson and NewRoad, two well-respected investment firms with a history of being strong partners. We are excited to support this new source of growth capital, which is expected to help drive economic and job growth here in Arkansas and in other capital constrained markets across the country,” said Governor Asa Hutchinson.
To date, KNRVF II has already made commitments of $6.5 million to an innovative medical diagnostic testing business in Springdale, AR and a Kansas City, MO, software-as-a-service company in the call center application space. The Fund’s investment approach is to actively source and make non-control investments in companies with recurring revenues that have proven demand for their products or services, but can benefit from accelerated growth through a direct capital investment and strategic partners who can add operational expertise. “My NewRoad partners and I are excited about deploying this capital to back high quality management teams and to continue to leverage our combined operating expertise to help create value for our companies and investors. With Kayne Anderson as our partner, this will only accelerate this area of focus for us,” said Clete Brewer, Managing Partner of Kayne NewRoad Ventures.
“Kayne Anderson is proud to partner with NewRoad, located in the heart of retail, supply-chain and logistics companies and back entrepreneurs in Arkansas, the mid-continent region and other underserved markets. We share similar philosophies and I strongly believe that our combined resources coupled with the strategy of identifying niches where we can bring the combination of disciplined financing with knowledge and direct sourcing advantages sets our early stage fund apart,” said Dave Walsh, Partner of Kayne Anderson Capital Advisors.
About Kayne NewRoad Ventures Fund II, L.P.
Kayne NewRoad Ventures Fund II, L.P. is a joint venture between Kayne Anderson Capital Advisors, L.P. and NewRoad Capital Partners, LLC. The Fund was formed to create and target demand-driven businesses with strong management teams in targeted market niches with operational expertise and capital to achieve outsized growth. The fund focuses on markets including retail, consumer packaged goods, supply chain & logistics, consumer healthcare, environmental and US manufacturing. The fund is co-managed by Kayne Anderson Capital Advisors, L.P. and NewRoad Capital Partners, LLC.
About Kayne Anderson Capital Advisors, L.P.
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading independent alternative investment management firm focused on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, and growth private equity. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where its knowledge and sourcing advantages enable it to deliver above-average, risk-adjusted investment returns. Kayne manages over $19 billion in assets (as of 2/29/16) for institutional investors, family offices, high net worth and retail clients and employs over 300 professionals in eight offices across the United States. Kayne Anderson Capital Advisors is SEC-registered investment adviser based in Los Angeles.
About NewRoad Capital Partners, LLC
NewRoad Capital Partners, LLC is a venture and growth equity firm focused on investing in technology-enabled businesses with an emphasis on retail, consumer packaged goods, supply chain, data, health & wellness, and US manufacturing. NewRoad Capital Partners is a SEC-registered investment adviser based in Bentonville, AR.
For more information, please visit our website: www.kaynecapital.com.