Kayne Anderson Capital Advisors has launched the Kayne Anderson Renewable Infrastructure Fund. No financial terms were disclosed. The fund will focus on investing in companies that develop, build, own and operate renewable power infrastructure.
LOS ANGELES–(BUSINESS WIRE)–Kayne Anderson Capital Advisors, L.P. (“Kayne”), a leading alternative asset management firm with over $30 billion under management, has launched the Kayne Anderson Renewable Infrastructure Fund (KARIX), a registered, open-end mutual fund offering daily liquidity. The Fund’s investment strategy is distinct in the marketplace as it focuses exclusively on investing in companies that develop, build, own and operate the renewable power infrastructure necessary to transition global power generation to a cleaner future, including wind farms, solar parks, energy storage and the infrastructure to bring that energy to market.
The fund is the latest expansion of Kayne’s renewable investing platform which includes investment strategies in both public and private renewable infrastructure. The fund leverages Kayne’s more than 20 years of experience as a premier energy infrastructure investor and 7 years of experience investing in listed renewable infrastructure companies.
J.C. Frey, Co-Head of Kayne’s renewable platform said, “This mutual fund focuses exclusively on renewable infrastructure and invests only in the companies that own, operate, and develop renewable power assets that generate predictable long-term cash flows from their base business. These are not companies that manufacture or develop renewable technologies, these are the hard assets in the renewable sector, with steady cash flows that we believe are well positioned to benefit from the unprecedented growth and secular tail winds driving the growth of renewable infrastructure.”
The global push to reduce carbon emissions is expected to have a profound impact on the energy and infrastructure sectors in the coming decades. Renewable power has rapidly become cost-competitive with fossil fuel power generation, and demand for new infrastructure investment is growing rapidly. The Fund is positioned to capitalize on this opportunity with a focus on infrastructure companies that have made renewables their core business.
“According to Bloomberg New Energy Finance, over $10 trillion is expected to be spent on new renewable generating capacity over the next 30 years, which will transform the energy sector, and dramatically reduce emissions. The fund seeks to achieve an attractive risk-adjusted total return by investing in these renewable infrastructure companies which historically have been less volatile and less correlated with the broader markets,” said Justin Campeau, Co-Portfolio Manager of KARIX.
Mike Levitt, CEO of Kayne Anderson, added, “We are excited by the launch of Kayne Anderson’s first ever mutual fund and the continued expansion of our renewable investing platform. Just like Kayne helped institutionalize energy infrastructure investing over twenty years ago, we plan on becoming a leader in renewables as we seek to generate attractive returns for our investors by taking advantage of the extraordinary secular growth opportunities in renewable power and infrastructure.”
About Kayne Anderson Renewable Infrastructure Fund
The Kayne Anderson Renewable Infrastructure Fund seeks total return through a combination of current income and capital appreciation. The Fund invests at least 80% of its net assets in a portfolio of Renewable Infrastructure Companies that are involved in business activities related to renewable energy production, storage, and transmission. These companies include companies that own or operate assets used in the development, generation, production, transmission, storage, and sale of alternative and renewable energy such as solar power, wind power, biofuels, hydropower, or geothermal power. Renewable Infrastructure Companies may also be engaged in businesses related to energy conservation, water infrastructure, conventional power generation, and the sale, distribution, transmission, and marketing of electricity.
About Kayne Anderson Capital Advisors, L.P.
Kayne Anderson Capital Advisors is a leading alternative investment management firm focused on infrastructure, real estate, credit and private equity. Kayne manages over $30 billion in assets (as of 6/30/20) for institutional investors, family office, high net worth and retail clients and employs nearly 370 professionals in five offices across the U.S.