Fundraising - OCTOBER 14, 2016

Kayne Anderson holds $2b close for energy fund

by Andrea Waitrovich

Kayne Anderson Capital Advisors has held a $2 billion final close for an energy-focused private equity fund, Kayne Anderson Energy Fund VII.

The fund will continue Kayne Anderson’s strategy of partnering with high-quality management teams focused on the upstream oil and gas sector of North America.

The fund, which exceeded its equity fundraising target, raised capital from both existing investors and new clients. It is part of Kayne Anderson’s energy private equity practice, which has raised nearly $8 billion since inception.

To date, KAEF VII has invested 40 percent of the fund’s equity to acquire more than 260,000 net acres and production of more than 10,000 barrels of oil equivalent per day, primarily in the Permian Basin, the STACK/SCOOP plays and the Bakken shale.

Kayne Anderson Energy Fund VI closed in 2013 with $1.6 billion in equity commitments. Kayne Anderson Energy Fund V closed in 2009 with $820 million and Kayne Anderson Energy Fund IV closed in 2006 with $950 million.

Eleven infrastructure billion-dollar funds have closed this year, raising more than $40 billion in equity commitments, according to IREI's FundTracker database.

The largest fund to close so far in 2016 was Brookfield Infrastructure Fund III, which closed in July with $14 billion of equity commitments. The fund invests in high-quality, core infrastructure assets on a value basis.

The second largest fund to close was Macquarie European Infrastructure Fund V, which closed in September with more than $4.9 billion in equity commitments.

Over the past three years billion-dollar funds typically accounted for 62 percent to 63 percent of the funds raised. Their percentage of total funds closed, however, has risen steadily, going from 19.4 percent in 2013 to 35.3 percent in August.

Last year, billion-dollar funds focused predominately on global and North American strategies. However, this year global strategies have remained popular.

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