Taking an active management approach with a $50 to $200 million investment, Kayne Anderson seeks investments in firms with clearly-defined business plans, but lacking the long-term growth capital to finance them. We seek management teams with extensive experience, basin-specific expertise and a track record of creating shareholder value. We maintain an end goal of encouraging management to target a return on capital rather than sheer growth, while staying focused on capital preservation. We are also able to leverage the firm’s extensive transactional experience to develop structuring solutions that address the needs of each investment opportunity.
The strength of Kayne Anderson’s investment approach is found not only in the ability to understand opportunities in markets not followed by the traditional investment community, but also in the emphasis on close working relationships. We support the performance of each of our investments by delivering a full range of business planning, corporate finance and capital markets expertise to complement the operational know-how of each portfolio company. Management teams also benefit from the extensive array of industry contacts established by Kayne Anderson’s investment professionals over longstanding careers.
Investment size of $50 to $200 million with an active, often majority controlling role and a typical holding period of 3 to 5 years
Conservative focus on risk management and capital preservation with moderate levels of leverage via senior credit facilities and prudent hedging
Avoid overpaying for drilling locations or acreage with a moderate initial pace of drilling until a project is proven