Safekeeping of Your Assets with Kayne Anderson

Below are the primary structural and operational characteristics which protect your Kayne Anderson assets from non-investment risk.

SEC Registration and Review

Kayne Anderson has been registered with the SEC since our inception in 1984, and is regularly audited by that agency. Information on results and responses to past audits is available upon request.

Comprehensive Financial Audits

Our investment partnerships are audited by an independent auditor, Rothstein Kass & Company, a leading accounting firm with expertise in the field of alternative investment management. Audit work is performed continuously throughout the year by a team of auditors, and such work includes review of valuation of private securities.

Independent Board Oversight

Our publicly held closed-end funds are subject to the oversight of Boards of Directors having a majority of independent directors. Among other matters, the Boards review portfolio activity and compliance, financial reporting, valuations and regulatory compliance on a quarterly basis. The funds also utilize third-party administrative and fund accounting services.

Investor Transparency

We provide investors with transparency in our investment processes, regularly undergoing due diligence meetings with leading institutional investors. We publicly report public equity holdings on a quarterly basis and such information is available through the SEC website.

Independent Custody of Assets

Client assets are held in safekeeping at one of two prime brokers, J.P. Morgan or UBS, and in certain circumstances collateral held against contracts is held at one of a number of major banking institutions including Morgan Stanley, Goldman Sachs, and Royal Bank of Canada. In no circumstance is client money held by Kayne Anderson directly.

Funds Transfers

Wire transfers and other funds transfer instructions require two signatures of senior Kayne Anderson personnel. Funds transfer instructions are created and records maintained by staff separate from the accounting department, with oversight by the Chief Financial Officer.

Trade Execution

Trades are conducted with a broad selection of external broker/dealers. KA Associates, a broker/dealer affiliated with Kayne Anderson, does not execute trades for or otherwise transact with our managed funds.

Internal Compliance

We maintain internal oversight of trading and portfolio management through a compliance team separate and distinct from the portfolio managers, consisting of legal counsel, a chief compliance officer, trading compliance officer, and a risk manager. Internal financial reporting, overseen by the CFO and two controllers, is reviewed by senior executives of Kayne Anderson on a regular basis.