Kayne Anderson Capital Advisors

Kayne Anderson Capital Advisors (Kayne Anderson), is a private equity firm based in Los Angeles, California with close to $32 billion in AUM as of August 2024. The firm’s lackluster commitments to transitioning its portfolio on a Paris-aligned timeline, along with its fossil fuel holdings earned the firm a C on the Private Equity Climate Risks Scorecard.

Founded in 1984 by Richard Kayne and John Anderson, the firm specializes in energy, infrastructure, real estate, credit, and growth equity investments. Albert Rabil serves as the CEO of the company. Under his leadership, Kayne Anderson has expanded its investment footprint, particularly in energy-related sectors, solidifying its position as a major player in the energy infrastructure investment space. PECR research found that 88 percent of Kayne’s energy portfolio is invested in fossil fuels, as of end of July, 2024. 

In a 2022 interview with CNBC, Rabil acknowledged the need to address climate change but downplayed the urgency of transitioning away from fossil fuels. “We’ve got a climate change issue, [the] transition needs to take place, the question mark is really, over what time can that transition reasonably take place,” Rabil said.

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One notable transaction is Kayne Anderson’s involvement with Terra Energy Partners (Terra), a company focused on extraction of oil and gas in the United States, including over 500 federal permits to drill on public lands. In 2015, Kayne Anderson made a $300 million equity investment in Terra and unsuccessfully tried to find a buyer for the company seven years later. Since putting Terra on the market for about $2.5 billion in 2022, no acquisition has been formally announced.