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e partner with entrepreneurs of growth stage enterprise software and technology-enabled companies across North America in the lower middle market.

Kayne Anderson’s growth capital platform (Kayne Partners) has an appreciation for nimble and innovative founders that blaze their own trail and understand the unique challenges entrepreneurs and management teams face in scaling their businesses. We understand that a strong management team is the foundation of a successful growth business.

Investing with Kayne

Why Growth Capital?

We partner with high-growth software companies that have reached an inflection point where an infusion of capital and the right partner can have a profound impact on helping them achieve their growth plans.

We are flexible in how we structure our capital and mindful of what makes the most sense for the business and management team. Our deep industry knowledge and experience enables us to support our management teams with a best-in-class approach to facilitate rapid scaling through experienced Board involvement, auxiliary corporate development support, and a network of operators and vendors.

The Firm Behind the Fund

We are an active partner bringing Kayne’s large firm capabilities to the lower middle market of technology investing contributing to the accelerated growth of some of the most innovative, high-growth software companies.

We access these companies through our direct sourcing engine, underwrite through deep industry expertise and specific investment stage knowledge, and bring our Firm’s significant resources to help drive value creation.

Experienced Investors

We are investors and partners, offering an established platform to accelerate the growth path of portfolio companies and help businesses realize their aspirations.

Our entrepreneurs are accomplished leaders. They look to us for our unique industry knowledge and perspective, strategic guidance, unique set of resources, and successful track record of building lower middle market growth companies into must-have assets for strategic and financial buyers and maximizing value at exit.

Patient, Flexible Capital

We offer flexibility as to transaction type and investment structure and take a more patient view than other investors. We tailor our investments to the unique situation of each company, rather than applying a one-size-fits-all strategy. We have done minority and majority transactions in preferred equity and debt structures and have the ability to stage our investments, increasing our commitment as the company scales. We are also open to partnering with other investors who bring strategic value.

We believe value is maximized when we are aligned with an entrepreneur, including meaningful equity for management. We advise our companies to take the right amount of capital to achieve the greatest impact.

Value-Add Capital

Entrepreneurs face similar challenges regardless of the end-markets they target and these phases of growth tend to be consistent as the revenues of the company continue to grow.

Kayne Partners experience across 40+ portfolio companies has enabled the team to develop consistent processes to add value through key hires, resource and product enhancements, infrastructure and scalable operational processes, capital formation planning and corporate development support.

We believe value is maximized when we are aligned with an entrepreneur, including meaningful equity for management. We advise our companies to take the right amount of capital to achieve the greatest impact.

Investing with Kayne

Investment Strategy

We look to partner with experienced and motivated entrepreneurs that have strong conviction in their businesses and built companies with clear competitive advantages, shown an efficient use of capital, and share attractive investment characteristics.

We have established expertise supporting companies at this stage of growth, which has led to successful exits to leading strategics, larger financial sponsors, and IPOs/SPACs.

Investment Criteria

  • North America lower-middle market
  • $10 – $75 million initial investments
  • Minority and control positions
  • Primary and secondary positions

Company Profile

  • $10 – 75M+ million revenue ($8 million + recurring)
  • 20%+ annual growth
  • Attractive and sustainable margins
  • EBITDA+ or path to profitability
  • Seasoned management with meaningful ownership
  • Measurable ROI
  • World class customers

Structure

  • Preferred equity
  • Debt with warrants
  • Convertible debt
  • Common

Target Industries

  • Supply chain & logistics
  • Media & telecom
  • Business process automation
  • Financial technology
  • Healthcare
  • Security & compliance
Investing with Kayne

Responsibility

It has been an undoubtedly unusual few years, causing us to reflect on our lives, priorities, and role in society. For Kayne Anderson, this meant assessing how we stay true to our values and philosophy and ensure we are leaders going forward not just in the financial community, but in our broader communities and society.

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Our People

Having invested together for over a decade, managing partners have established a tested growth strategy.