Kayne Anderson‘s latest US oil and gas energy infrastructure fund is investing in Terra Energy Partners II (Terra II).
Terra II, a newly created oil and natural gas company headquarted in Houston, Texas, said it received $300m (€264m) in equity commitments from Kayne Private Energy Income Fund (KPEIF) III and members of the company’s management team.
The firim will focus on the acquisition and development of large, cash-flowing oil and natural gas assets with significant existing production throughout the lower 48 US states.
The company is led by chief executive officer BJ Reynolds and chief operating officer Wes Hobbs, who previously served in leadership roles at Terra Energy Holdings (Terra I), which was also sponsored by Kayne Anderson.
The launch of Terra II follows the sale of Terra I, which was the inaugural investment of the Kayne Private Energy Income funds strategy in 2016.
Reynolds said: “We’re excited to renew our partnership with Kayne Anderson as we launch Terra II. Building on the strong foundation and track record established with Terra I, we are confident in our ability to capture compelling opportunities in today’s market.
“With a proven team, disciplined strategy and substantial equity backing, Terra II is well positioned to once again deliver outstanding results and long-term value for our shareholders.”
Danny Weingeist, managing partner and co-head of energy private equity at Kayne Anderson, said: “Terra I was a defining investment for our income funds platform, and we’re proud to partner with this team again.
“BJ, Wes, and the broader Terra team have an excellent operational and commercial track record, and we’re confident in their ability to drive value for our investors through Terra II.”
Last month, Kayne Anderson closed KPEIF III, securing $2.25bn in total capital commitments.
As previously reported, Teacher Retirement System of Texas and Kentucky Retirement System each issued $100m commitments to KPEIF III.
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 said last month.
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