Credit Strategy

Private Credit

Private credit platform leveraging a credit-intensive model across a range of industries in North America.

  • $6B+

    In Assets Under Management

  • 340+

    Closed Transactions

  • 80%

    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.

Investment Fundamentals

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).

Limited Partners

  • 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

Investment Structures

  • Senior secured loans
  • Equity co-invest
  • Unitranche facilities

Financing Partners

  • 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

Our People

Founders of Kayne’s private credit platform have been working together for over 30 years.