The cornerstone of Kayne Anderson’s energy private investment strategy is to identify and invest in exceptional middle market North American oil and gas opportunities that are often overlooked or underexploited. With a knowledge and sourcing advantage, we are able to identify opportunities and add value to firms with proven management teams and growing cash flows.
Kayne Anderson’s investment philosophy centers on a bottom-up, asset-level evaluation of investment opportunities utilizing premier in-house technical and financial expertise. We focus on opportunities where we can leverage a relationship and information advantage, and utilize engineering insight not available to the broader market.
Kayne Anderson’s team of investment professionals includes in-house reservoir engineers who have devoted their careers to the oil and gas industry. The Firm believes that this technical expertise provides Kayne Anderson with a more thorough understanding of the unique risks and under-appreciated upside associated with each investment opportunity, enabling the Firm to better identify investment opportunities with attractive risk/return profiles and to more effectively manage and support its portfolio companies. This skill set is increasingly important today as technological developments – principally horizontal drilling and modern multi-stage fracture stimulations (“fracks”) – have reversed a previously accepted trend and dramatically increased domestic production and profitability over the past decade. Improvements to these technologies continue to evolve rapidly, and the Firm’s technical expertise enables it to assist its companies across the portfolio in understanding and utilizing these advancements to enhance value-creation. By focusing on smaller transactions in the middle-market space, Kayne Anderson can identify under-exploited, niche opportunities to which it can apply this technology transfer within and across basins.
Focus on growing businesses in niches with origination and knowledge advantage and superior sourcing of investment professionals and teams
Advances in technology, primarily horizontal drilling and modern fracking techniques, has reversed decades-long trends and dramatically increased the industry’s ability to generate economic returns
Domestic natural gas production is at its highest level in history, oil production is at a 28-year high and estimates of domestic economic recoverable reserves have doubled in the past decade
Strategic effort to lease acreage targeting reservoirs in proven basins and acquire underexploited properties from companies who are selling to fund resource play development