Kayne Anderson has confirmed the close of its latest US oil and gas energy assets fund, securing $2.25bn (€2bn) in total capital commitments.
As reported by IPE Real Assets last month, Kayne Private Energy Income Fund (KPEIF) III was expected to close that month with $2bn in capital commitments, surpassing its $1.5bn target, according to sources at the time.
Kayne Anderson said including co-investments and other associated funds, the strategy has raised over $2.8bn since launching the fundraise.
As previously reported, Teacher Retirement System of Texas and Kentucky Retirement System each issued a $100m commitment to KPEIF III.
Teacher Retirement System of Texas also approved another $100m co-investment with Kayne Anderson in Karolia PIV for an undisclosed asset.
KPEIF III will continue Kayne Anderson’s approach of investing in high-quality private energy companies, primarily focused on acquiring and developing large-scale oil and natural gas assets that generate stable and predictable free cash flow, the manager added.
Danny Weingeist, managing partner and co-head of Kayne Energy Private Equity, said: “We are grateful for the strong support from both existing and new investors who recognise the strength of our platform and longstanding focus on income-oriented energy investing.
“We deeply value the trust placed in us and remain committed to delivering outstanding results for our partners and portfolio companies.”
Mark Teshoian, managing partner and co-head of Kayne Energy Private Equity, said, “This successful fundraise validates the strategy we pioneered nearly a decade ago – one that prioritises scale, free cash flow and equity distributions to deliver attractive risk-adjusted returns.
“We see today’s market as a compelling entry point and are confident our strategy is well positioned to navigate market volatility and create significant value for our investors. We are grateful for the hard work and dedication of our investors, colleagues and portfolio companies – without whom none of this would have been possible.”
Jon Peterson contributed to this story
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