In Assets Under Management
Deals as Lead/Co-Lead Arranger
Kayne Anderson is a leading provider of financing solutions to middle-market borrowers with strong, sustainable cash flows.
Over the past three decades and through a variety of cycles, the team has executed more than $13 billion of directly originated loans, earning a reputation as a trusted and reliable partner in the private credit markets. Targeting senior loans in traditional middle market companies across a wide array of industries.
Kayne Anderson Private Credit (“KAPC”) uses a unique strategy to determine business value / credit quality and associated sustainability of cashflows. This strategy has been the core of the Principals’ credit evaluation process for over 30 years. The strategy involves judging a company based on two primary sets of business value characteristics: Intrinsic value and Diversified value. A business must fall in to one of these categories to make it through the investment committee process. In fact, with each subsequent fund, KAPC has constructed portfolios with consistent leverage (~4.0x) and loan-to-value (~50%), while limiting cyclical investments (less than 20% of any given portfolio) and increasing its role as an agent, helping to dictate terms, pricing and control a workout (if necessary).
- Attractive yields with floating rate upside
- Low correlation to broader market volatility
- Maintain discipline: return “of” capital, before return “on” capital
- Demonstrated underwriting strategy and credit selection methodology
- Ability to invest in sponsored and non-sponsored opportunities
- Companies with $50M to $500M+ in revenues and $10M to $50M in EBITDA
- Value lending philosophy
- Senior secured loans
- Equity co-invest
- Unitranche facilities
- Vertically integrated staffing model where all investment team members participate in all components of origination, execution, and portfolio management
- Team offers extensive experience underwriting and syndicating transactions with an exclusive focus on the middle market niche for over 25 years
- $10M to $100M investment sizes, with the ability to underwrite over $250M and an intention to hold to maturity
- Transaction types include leveraged buyouts, growth capital, mergers & acquisitions, refinancing, and recapitalizations
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