While the original target when the shop launched the fund-raising effort last summer was closer to $1.6 billion, Danny Weingest, co-managing partner of the firm’s energy investments group, said Kayne Anderson was “very pleased” with the amount raised considering the dismal market conditions.
“This is a great time to have dry powder to put to work,” Weingest said.
Limited partners in Kayne Anderson Energy Fund V include the University of Michigan, New Mexico Public Employees Retirement Association and San Diego County Employees Retirement Association. Roughly two-thirds of the LPs in the fund, which officially wrapped in late May, were re-ups.
The size of the fund is just a slight step-back from the firm’s previous energy vehicle, Kayne Anderson Energy Fund IV, which closed in late 2006 at $950 million.
Weingest noted that the first deal for fund V could come shortly as Kayne Anderson expects to soon close on an investment commitment with an undisclosed private oil and gas company based in Denver.
The firm, which has offices in Houston, Los Angeles and New York, began investing in the energy sector through private investments in the early 1990s. It raised $112.5 million for its first energy fund in 1998 and the size of all its subsequent funds rose appreciably before the pullback with fund V.
Kayne Anderson said in a press release that fund V would invest in early to mid-stage North American oil and gas companies. —Michael Baron