Kayne Anderson 

Kayne Senior Credit Fund IV

 

FUND STATUS: Closed

 

Kayne Senior Credit Fund IV

 

FUND STATUS: Closed

 

Opportunity

Kayne believes traditional middle market credit-based investments have consistently provided compelling risk-adjusted returns (as an asset class) over the last 25 years. The investment activities of the Principals have been similarly successful over a like time period as the Principals have been able to generate attractive returns throughout their history together and across several economic cycles. We expect that a number of factors will continue to drive strong demand for middle market senior credit, both by private equity owned and non-private equity owned companies, for many years in the future, including:

(i) primary market opportunities driven by a significant amount of unspent middle market private equity capital,

(ii) opportunities driven by a large need for the refinancing or restructuring of existing debt of healthy companies and

(iii) supplemental and growth capital opportunities. 

Meanwhile, the supply of capital to middle market borrowers is relatively constrained due to:

(i) a long term regulatory trend that has nearly eliminated bank participation in leveraged finance due to stricter federal leveraged lending guidelines and

(ii) consolidation of commercial banks over the last two decades, which has caused banks to abandon the middle market as they move up-market to service larger clients (see “Market Overview” for further detail).

Opportunity

Kayne believes traditional middle market credit-based investments have consistently provided compelling risk-adjusted returns (as an asset class) over the last 25 years. The investment activities of the Principals have been similarly successful over a like time period as the Principals have been able to generate attractive returns throughout their history together and across several economic cycles. We expect that a number of factors will continue to drive strong demand for middle market senior credit, both by private equity owned and non-private equity owned companies, for many years in the future, including:

(i) primary market opportunities driven by a significant amount of unspent middle market private equity capital,

(ii) opportunities driven by a large need for the refinancing or restructuring of existing debt of healthy companies and

(iii) supplemental and growth capital opportunities. 

Meanwhile, the supply of capital to middle market borrowers is relatively constrained due to:

(i) a long term regulatory trend that has nearly eliminated bank participation in leveraged finance due to stricter federal leveraged lending guidelines and

(ii) consolidation of commercial banks over the last two decades, which has caused banks to abandon the middle market as they move up-market to service larger clients (see “Market Overview” for further detail).

Click below to learn more about Kayne Anderson’s Senior Credit Fund

Click below to learn more about Kayne Anderson’s Senior Credit Fund