Kayne Anderson Capital Advisors raises $2 billion for energy PE fund

Kayne Anderson Capital Advisors, L.P. has announced the final close of its latest energy-focused private equity fund, Kayne Anderson Energy Fund VII (KAEF VII).

The fund was closed at its hard cap of approximately US$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.

The fund is part of Kayne Anderson’s successful energy private equity practice that has raised nearly US$8.0 billion since inception.

Chuck Yates, Managing Partner of Kayne Anderson Energy Funds said:

“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.”

Mike Heinz, Managing Partner of Kayne Anderson Energy Funds, said:

“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. 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 US$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.”