Kayne Anderson nears target for Fund VI

The energy-focused firm has made seven investments from the fund, which has raised roughly $1.3bn toward a $1.6bn target.

Kayne Anderson Capital Advisors has raised around $1.33 billion for its sixth energy-focused fund, according to a source with knowledge of the situation.

Fund VI is targeting $1.6 billion, and had collected about $1.1 billion as of July, according to documents filed with the US Securities and Exchange Commission. Kayne has made seven investments from the fund totaling approximately $750 million, the source said, all of which have been to energy assets in North America. The firm committed $300 million to Houston-based oil and gas exploration and production business Canyon Midstream Wednesday, using capital from both Fund VI and its $820 million fifth fund.

Kayne Anderson declined to comment.

“As a longtime investor in the [exploration and production] business, we have an apprecation for the value that can be created by a responsive, entrepreneurial and well-capitalised midstream company,” said Danny Weingeist, managing partner of Kayne Anderson Energy Funds, in a statement.

Fund VI will continue the energy group's focus on investments in early to mid-stage North American oil and gas companies with typical investments ranging from $50 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 80 energy companies since 1998 and has more than 40 existing portfolio companies. The firm’s energy funds manage more than $4 billion of capital, part of a total $17.8 billion of assets under management.

Kayne Anderson Capital Advisors 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. The firm specialises in alternative investment management for energy infrastructure, energy private equity, real estate private equity, mid-market Credit and municipal opportunities.