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Kayne Anderson closes on $250 million for new senior credit fund

Firm: Kayne Anderson Capital Advisors

Fund: Kayne Senior Credit Fund II

Target: $500 million

Amount raised: $250 million

The effort comes about 16 months after Kayne Anderson announced a $350 million close for its predecessor credit fund, which provided senior secured credit to sponsored and non-sponsored mid-market borrowers with $10 million to $50 million in EBITDA.

The earlier fund, Kayne Senior Credit Fund LP, aimed to hold $10 million to $50 million positions in senior, unitranche, split-lien and last-out loans, according to a March 2013, statement from Kayne Anderson.

In one deal announced in 2012, Kayne Anderson Senior Credit Partners teamed up with a co-investor to commit $22.5 million to a term loan used to support KPS Capital Partners’s acquisition of American & Efird, a producer of sewing thread.

Los Angeles-based Kayne Anderson, which now manages $28 billion, traces its roots to 1984 as an independent alternative asset manager. Today it has units handling energy marketable securities, upstream energy private equity, growth private equity, real estate private equity, mid-market credit and municipal opportunities, according to the firm’s website.

Richard Kayne, chairman and founder of Kayne Anderson, also founded Kayne Anderson Rudnick, an investment management firm that was sold to the Phoenix Cos in 2001. He was also a principal at Cantor Fitzgerald & Co Inc, where he managed private accounts and a hedge fund. Robert Sinnott, president, chief executive officer and chief investment officer, joined Kayne Anderson in 1992 after working as a member of Citibank’s LBO Swat team focusing on the energy and airline sectors.

In late 2011, Kayne Anderson added its mid-market senior credit team, led by Ken Leonard, Al Ricchio and Andy Marek, who were co-founders of Dymas Capital Management in 2002 and former senior executives at GE Capital and Heller Financial. Dymas had been an affiliate of Cerberus Capital Management when it was phased out in 2011. Leonard, Ricchio and Marek remain with Kayne Anderson in the firm’s Chicago office, according to the Kayne Anderson website, which lists a total of 19 people including mid-market credit managing partners Edward Cerny and David Petrucco.