Kentucky Retirement System has issued a $100m (€88.2m) commitment to Kayne Anderson‘s latest US oil and gas energy assets fund.
The pension fund disclosed in a board meeting document that it placed the capital into the Kayne Private Energy Income Fund III fund.
IPE Real Assets reported last month that the Kayne Anderson fund was expected to close with $2bn in capital commitments, exceeding its $1.5bn target.
Fund III, which expects to generate internal rates of return of 12% and 14%, has already made a $17.2m investment in a continuation vehicle for Kraken Resources. Kraken Resources is a private US oil and gas producer operating in the Williston Basin, which spans the border of North Dakota and Montana.
The fund has also committed capital to FourPoint Resources, which has acquired over 125,000 acres in Utah’s Uinta Basin from Ovintiv.
The other commitment was to Riverbend Energy Group, targeting opportunities in the Midland Basin of West Texas.
Kentucky Retirement disclosed in the meeting document that over 30% of Fund III’s capital has already been called, and Kayne expects the fund will be at least 50% invested by the end of this year.
Kayne Anderson declined a request for comment.
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