Kayne Anderson Capital Advisors’ growth private capital strategy, Kayne Partners, raised over $600 million of new capital for its growth platform that now totals $1.2 billion.
The fundraise includes the closing of its fifth equity fund Kayne Partners Fund V, co-investment capital and the newly launched Kayne Partners growth credit platform that is set to be a complementary strategy focused on provided stage-specific tech companies with flexible debt solutions.
KPF V is the largest growth capital fund raised by Kayne Anderson to date, officials said. To date, KPF has invested more than $862 million in approximately 50 companies in the lower middle market. The investments span sectors including supply chain/logistics, media and telecommunications, business process outsourcing and outsourcing, financial technology, healthcare IT and security, and compliance and infrastructure.
“The unique combination of unparalleled resources, domain knowledge and stage expertise, along with the capital that Kayne Partners can bring to entrepreneurs is a strong point of differentiation for our team,” said Nishita Cummings, co-head of Kayne Partners in a statement. “We have seen how our stage-specific approach can drive significant value creation at a key point of inflection for the companies we have partnered with and are proud to have the support of an incredible group of investors in continuing to execute our strategy.”
The growth credit platform launch is being touted by the team as offering a unique risk-return profile to a different subset of growth companies than Fund V is targeting. The platform team will leverage existing resources and infrastructure and underwriting expertise as well as from the knowledge of Kayne Anderson’s private credit platform.
“We believe our niche credit solutions serve to fill a gap in the market that traditional lenders are not able to fully serve,” said Kayne Partners’ Managing Partner Leon Chen, in a statement. “Our solutions will enable specific growth-stage companies to have access to the appropriate type of capital they need to fund their growth.”
