Alternative asset manager Kayne Anderson Capital Advisors has launched the Kayne Anderson Renewable Infrastructure Fund (KARIX), a registered, open-end mutual fund offering daily liquidity. The Fund’s investment strategy 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.
JC Frey, Co-Head of Kayne’s renewable platform, says: “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. 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 tail winds driving the growth of renewable infrastructure.”
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 capitalise on this opportunity with a focus on infrastructure companies that have made renewables their core business.
“According to Bloomberg New Energy Finance, over USD10 trillion is expected to be spent on new renewable generating capacity over the next 30 years, which will transform the energy sector, and dramatically reduce emissions. The fund seeks to achieve an attractive risk-adjusted total return by investing in these renewable infrastructure companies which historically have been less volatile and less correlated with the broader markets,” says Justin Campeau, Co-Portfolio Manager of KARIX.
Mike Levitt, CEO of Kayne Anderson, adds: “We are excited by the launch of Kayne Anderson’s first ever mutual fund and the continued expansion of our renewable investing platform. Just like Kayne helped institutionalise energy infrastructure investing over twenty years ago, we plan on becoming a leader in renewables as we seek to generate attractive returns for our investors by taking advantage of the extraordinary secular growth opportunities in renewable power and infrastructure.”
