(Adds first-close target in second paragraph.)
Nov. 16 (Bloomberg) -- Kayne Anderson Capital Advisors LP, the investment firm founded by Richard Kayne, is seeking to raise $1.6 billion for a fund to invest in private gas and oil companies, according to a person familiar with the matter.
The Kayne Anderson Energy Fund VI LP, which will invest in companies in the U.S. and Canada, is the firm’s sixth fund and aims for a first close in the second quarter of 2012, according to the person, who asked not to be identified because the information isn’t public. The Los Angeles-based firm’s fifth fund, which attempted to raise a similar amount in 2009, closed below its target at $820 million.
Kayne Anderson is coming to market as many buyout shops are raising energy-focused funds to take advantage of a rise in oil and commodity prices and increased demand from emerging markets. Private-equity firms raised $6.4 billion for five energy funds this year through October, according to researcher Preqin Ltd., as investors steered their money into the strategy as a possible hedge against inflation.
Greg Davis, a senior vice president of the firm, declined to comment on fundraising.
Kayne Anderson, founded in 1984, has made energy investments since 1991, typically in privately issued common and preferred securities of private and public companies. The firm, with an average investment of $50 million to $100 million, manages partnerships that finance exploration, production, midstream and oilfield service companies. Midstream companies process, transport and store fuel.
The firm last year raised $600 million for its first mezzanine fund, which will focus on companies, including those owned by private-equity firms, with annual earnings before interest, taxes, depreciation and amortization of $10 million to $50 million. Mezzanine funds invest in loans that rank between senior debt and equity in a company’s capital structure.
Kayne Anderson Capital Advisors managed more than $12.6 billion in private investment partnerships and public closed-end funds as of Sept. 30, according to its website.
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