Kayne Anderson racks up about $2 bln for seventh energy-focused PE fund

Kayne Anderson Capital Advisors LP has closed its seventh energy-focused private equity fund at a hard cap of about $2 billion. Kayne Anderson Energy Fund VII LP will focus on the upstream oil and gas sector in North America.


HOUSTON–(BUSINESS WIRE)–Kayne Anderson Capital Advisors, L.P. today announced the final close of its latest energy-focused private equity fund, Kayne Anderson Energy Fund VII, L.P. (“KAEF VII” or the “Fund”). The Fund was closed at its hard cap of approximately $2.0 billion in limited partner commitments. The Fund will continue Kayne Anderson’s successful strategy of partnering with high-quality management teams focused on the upstream oil and gas sector of North America.
The Fund exceeded its fundraising target with strong support from both existing investors and new clients that together represent some of the nation’s leading institutional investors. The Fund is part of Kayne Anderson’s successful energy private equity practice that has raised nearly $8.0 billion since inception.

“We greatly appreciate the trust and support from our investors. Having capital during this part of the cycle has allowed our portfolio companies to put together an attractive collection of assets,” said Chuck Yates, Managing Partner of Kayne Anderson Energy Funds.

“To date, KAEF VII has partnered with 15 portfolio management teams and has invested 40% of the Fund to acquire greater than 260,000 net acres and over 10,000 boe/d of production primarily in the Permian Basin, the STACK/SCOOP plays and the Bakken shale,” said Mike Heinz, Managing Partner of Kayne Anderson Energy Funds. “The success of this raise allows us to continue to partner with our extremely talented management teams. We are fortunate and thankful that more than half of the portfolio companies in KAEF VII are run by management teams we have successfully partnered with in the past.”

Bob Sinnott, Co-Chairman of Kayne Anderson and head of its energy investment strategies, said, “Kayne has recently raised over $4 billion across our upstream and midstream strategies to take advantage of one of the best times we have seen to invest in energy. In our private equity business, we look forward to continuing our long-term track record of combining our industry-leading engineering and financial expertise with some of the best management teams in the business.”

Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading 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 our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages over $24 billion in assets (as of 9/30/2016) for institutional investors, family offices, high net worth and retail clients and employs 300 professionals in eight offices across the U.S.