Led by senior management from the successful Kayne Anderson energy funds, the Kayne Private Energy Income Fund (“KPEIF”) was launched in 2014 to take advantage of the attractive industry dynamics for large, long-life upstream oil and gas assets located onshore North America. KPEIF seeks to partner with select high-quality “basin expert” management teams in order to acquire and develop assets with a meaningful percentage of proved developed producing reserves and lower-risk development drilling upside.
KPEIF is structured to align our cost of capital with the lower risk nature of our targeted assets. Our portfolio companies will utilize moderate amounts of leverage and will hedge a meaningful percentage of production to protect cash flow and provide downside protection. We anticipate that our portfolio companies will reinvest a portion of cash flow in low-risk development drilling to maintain or grow production and cash flow. Consequently, we expect to generate attractive risk-adjusted returns for our investors through a combination of quarterly current income as well as long-term capital appreciation.
We intend to make significant investments of between $250 million and $500 million in privately held upstream oil and gas companies. KPEIF will partner with basin-focused management teams to pursue large buyouts from companies seeking to divest their legacy, producing assets. After making acquisitions, we intend to make capital available to our management teams to be utilized for operational and financial performance improvement, as well as upside development.
Energy team with expertise in finance and engineering allowing hands-on involvement with management
Complete in-house infrastructure support with full legal, compliance, risk, accounting, finance/operational teams
Favorable investment environment where technological advancements are driving the resource play revolution
Appealing long-term fundamentals for natural gas driven by demand growth from LNG exports, power generation, and industrial uses