Mezzanine Finance: CAPITAL APPRECIATION WITH LOW VOLATILITY
Focused on middle market mezzanine financings
Kayne Anderson Mezzanine Partners (KAMP) makes investments in middle market companies that have demonstrated an ability to generate stable and measurable cash flows. Our investments are typically structured as subordinated debt securities that pay quarterly interest and may contain either warrants or a modest equity co-investment to enhance our overall portfolio target return. Our driving investment philosophy is protection of principal. We invest in middle market companies ($100-$500M sales and $10-$50M of EBITDA), with a typical investment size of $10-35M. The businesses we look to invest in often are leaders in their industry or niche, have a defensible competitive advantage, are run by seasoned and proven management, and possess very healthy credit characteristics. In addition, we often finance private equity sponsors with whom we have invested for many years and who have a strong and long-term investment track record. We invest in both companies with institutional equity sponsors and in those without such sponsorship. Our business works very closely with the other components of Kayne Anderson. For example, we have shared personnel resources in the Kayne Anderson Houston office to source investments related to the energy industry in order to take advantage of Kayne's expertise in this sector.
Kayne Anderson Mezzanine Finance Group
The KAMP team joined Kayne as a cohesive unit from a leading alternative asset management firm and has a long and successful history of middle market finance transactions. The team has a lengthy and distinguished list of relationships from which they source deal flow, and is highly experienced in all aspects of mezzanine financing, including sourcing, credit analysis, due diligence, execution of documents and portfolio management. In addition to what is a very strong team, Kayne's senior management, which has decades of successful investment experience in the middle market, provides significant support to our effort, including investment committee participation.
