Kayne Anderson Capital Advisors has closed its fifth energy-focused fund on $820 million after about ninth months in fundraising.
The fund’s original target was $1.6 billion but the fundraising environment was the “toughest I’ve seen”, according to Danny Weingeist, co-managing partner for the firm’s energy private equity group. “A lot of endowments and foundations and other institutions are reported to have liquidity issues and a lot of them are not looking for additional long term investments.”
The firm’s prior energy fund collected $950 million and closed in 2006. Fund IV is fully committed.
Kayne Anderson expects its first investment from the new fund to close in the next few weeks, Weingeist said, who would only describe the investment as a “private oil and gas company out of Denver”.
Kayne Anderson Energy Fund V raised money from about 70 percent existing investors and 30 percent new limited partners, including foundations, endowments and state pensions.
The fund will focus on investments in early to mid-stage North American oil and gas companies with typical investments ranging from $20 million to $150 million. The firm targets companies that need strategic equity capital to finance acquisitions and development opportunities.
Kayne Anderson’s energy group has invested in more than 50 energy companies since 1998. The energy team manages more than $2.7 billion of the firm’s $6 billion assets under management.
Kayne Anderson was founded in 1984 by Richard Kayne, a former Cantor Fitzgerald principal, and John Anderson, an attorney, financial investor and philanthropist for whom the UCLA business school is named.