Mezzanine Finance

Middle-market mezzanine investing targeting capital appreciation with low volatility

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 $10M-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.

For more information on Kayne Anderson's mezzanine finance investing, please contact us.

Kayne Anderson Mezzanine Finance Investments