Kayne Anderson Capital Advisors has begun raising a new investment vehicle dedicated to U.S. oil and gas production, bucking the trend of private equity firms fleeing the sector because of its financial volatility and environmental concerns, people familiar with the matter said on Wednesday.
The alternative asset manager started marketing to investors last week Kayne Private Energy Income Fund III, aiming to secure $1.5 billion to buy and develop businesses generating steady cash flow from established production sites, the sources said.
The sources spoke on condition of anonymity to discuss confidential information. Kayne Anderson declined comment.