Kayne Anderson closes mezz fund on $600m

The firm exceeded its $500m target and has completed six portfolio company investments totaling nearly $90m, said managing Partner David Petrucco.

Kayne Anderson Capital Partners has closed its first generalist mezzanine fund on $600 million.

The fund, Kayne Anderson Mezzanine Partners (KAMP), launched in the first quarter of 2009 with a target of $500 million and will focus on providing mezzanine capital to both private equity sponsored and unsponsored mid-market companies across a wide variety of industries.

“We will look at almost anything, with just about a few exceptions,” co-managing partner of the firm’s mezzanine financing activities David Petrucco told PEO. “The pipeline of opportunities is every bit as random in terms of the deals being both private equity owned and not, and really kind of running the gamut of just credit.”

To date, KAMP has made six portfolio investments totaling nearly $90 million in support of refinancings, corporate expansions, leveraged buyouts and recapitalisations. The fund has a target investment size of

David Petrucco

between $10 million and $50 million.

Kayne has been investing in the mezzanine asset class for roughly 20 years across its various funds. Petrucco and partner Ed Cerny joined the firm in 2008 from The Blackstone Group, where they were part of the corporate debt group, managing mezzanine investments. Kayne has invested in food businesses, business service companies, defense manufacturers, agricultural type businesses and general manufacturing.

In July 2009, Kayne closed its fifth energy-focused fund on $820 million after roughly nine months of fundraising. That fund is approximatley 30 percent committed to five teams, according to Kayne Anderson portfolio manager Danny Weingeist.

Kayne Anderson was founded in 1984 by Richard Kayne, a former Cantor Fitzgerald principal, and John Anderson, an attorney, investor and philanthropist for whom the UCLA business school is named.