Kayne Anderson Capital Advisors LP, an alternative asset management firm with over $30 billion under management, has launched the Kayne Anderson Renewable Infrastructure Fund (KARIX), a registered, open-end mutual fund offering daily liquidity.
The fund’s investment strategy is distinct in the marketplace, as it focuses exclusively on investing in companies that develop, build, own and operate the renewable power infrastructure necessary to transition global power generation to a cleaner future, including wind farms, solar parks, energy storage and the infrastructure to bring that energy to market.
The fund is the latest expansion of Kayne’s renewable investing platform which includes investment strategies in both public and private renewable infrastructure. The fund leverages Kayne’s more than 20 years of experience as a premier energy infrastructure investor and seven years of experience investing in listed renewable infrastructure companies.
“This mutual fund focuses exclusively on renewable infrastructure and invests only in the companies that own, operate and develop renewable power assets that generate predictable long-term cash flows from their base business,” says J.C. Frey, co-head of Kayne’s renewable platform.
“These are not companies that manufacture or develop renewable technologies, these are the hard assets in the renewable sector, with steady cash flows that we believe are well-positioned to benefit from the unprecedented growth and secular tailwinds driving the growth of renewable infrastructure,” Frey adds.
The global push to reduce carbon emissions is expected to have a profound impact on the energy and infrastructure sectors in the coming decades. Renewable power has rapidly become cost-competitive with fossil fuel power generation, and demand for new infrastructure investment is growing rapidly. The fund is positioned to capitalize on this opportunity with a focus on infrastructure companies that have made renewables their core business.