Kayne Anderson Capital Advisors has raised $700 million toward its $1.6 billion Kayne Anderson Energy Fund V, according to a market source with knowledge of the firm’s fundraising effort.
The firm launched the fundraising effort last summer and held a first close on $670 million in late November 2008. It expects a second close in the first half of the year.
If successfully raised, Fund V would be the largest energy fund the firm has ever raised. Its first four funds, vintages 1998, 2002, 2004 and 2006, raised $112.5 million, $240 million, $550 million and $950 million, respectively, according to its website.
Fund IV has committed nearly all of its capital and is almost 30 percent invested. The firm has achieved IRRs of at least 35 percent for each of its first three funds, according to a recent investor presentation.
Kayne Anderson’s Energy Private Equity group, whose team is principally based in Houston, allocates most of its capital, between 80 percent and 90 percent, to exploration and production companies. It allocates between 10 percent and 20 percent to midstream and energy service deals.
The firm’s fundraising is the latest in a string of recent fundraising successes in the energy sector. Late last year, Houston-based Quantum Energy Partners gathered $2 billion for its fifth energy fund targeting $2.75 billion, and Quintana Capital Group, also of Houston, gathered commitments of $250 million for its second energy fund in just four months.
Kayne Anderson declined to comment.