Kayne Anderson BDC
Kayne Anderson BDC, Inc. (“KABDC”) and Kayne DL, 2021, Inc. (“KDL”) were formed to make investments in middle-market companies and commenced operations on February 5, 2021 and December 16, 2021, respectively. KABDC and KDL are externally managed, closed-end, non-diversified management investment companies that have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”).
Investment Objective and Strategy
KABDC’s and KDL’s investment objectives are to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies. We intend to achieve our investment objective by investing primarily in first lien senior secured, unitranche, and split-lien loans to privately held middle-market companies.
We expect that between 80% and 90% of our portfolio (including investments purchased with proceeds from borrowings) will be invested in first lien senior secured, unitranche, and split-lien term loans. We expect most of these investments will be in core middle-market companies, with the remainder in upper middle-market companies. The remaining 10% to 20% of our portfolio will be invested in higher-yielding investments, including, but not limited to, second lien loans, last-out or subordinated loans, non-investment grade broadly syndicated leveraged loans, high-yield bonds, structured products (including CLO liabilities), real estate related debt securities, equity securities purchased in conjunction with debt investments and other opportunistic investments.
We intend to implement our investment objective by (1) accessing the established loan sourcing channels developed by Kayne Anderson, which includes an extensive network of private equity firms, other middle-market lenders, financial advisors and intermediaries, and experienced management teams, (2) selecting investments within our middle-market company focus, (3) implementing Kayne Anderson’s middle market private credit team’s disciplined underwriting process, which includes reviewing environmental, social and governance (“ESG”) considerations, and (4) drawing upon the experience and resources of our Advisor’s investment team and the broader Kayne Anderson network.
KA Credit Advisors, LLC and KA Credit Advisors II, LLC (each an “Advisor”), affiliates of Kayne Anderson Capital Advisors, L.P., manage the investment activities of KABDC and KDL, respectively. Each Advisor’s investment team is comprised of experienced middle-market investors that have been focused on the middle-market since the 1980s.
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne manages approximately $32 billion in assets (as of 3/31/2022) for institutional investors, family offices, high net worth, and retail clients and employs over 350 professionals in five core offices across the U.S., 50 of which are dedicated to credit investing.
Directors and Executive Officers
- Independent Directors
- Mariel Joliet
- George E. Marucci, Jr.
- Susan Schnabel
- Interested Directors
- Albert Rabil
- Terrence J. Quinn
- Executive Officers
- James C. Baker
- Douglas L. Goodwillie
- Kenneth B. Leonard
- Terry A. Hart
- Michael J. O'Neil
- John B. Riley
Mariel A. Joliet serves as Chairperson of our Board of Directors and Chairperson of our Nominating and Corporate Governance Committee. Ms. Joliet also serves as a director on the Board of Directors of ASGN, Incorporated (NYSE: ASGN) and is also a member of ASGN’s Audit and Compensation Committees. ASGN is one of the foremost providers of highly skilled professionals in the technology, digital, creative, healthcare technology, engineering, life sciences and government sectors. From 1998 to 2008, Ms. Joliet was employed by the Hilton Hotels Corporation, a publicly-traded hotel company, as senior vice president and treasurer. During her time at the Hilton Hotels Corporation, Ms. Joliet participated in its sale to the Blackstone Group for $27 billion, one of the ten-largest leveraged buyouts in history at the time. As Treasurer, Ms. Joliet was responsible for capital markets and financial investment initiatives, including credit ratings, debt/equity issuances, interest rate risk management, cash management and foreign exchange. Prior to her employment with Hilton Hotels Corporation, Ms. Joliet worked for ten years as a coverage officer and corporate banker at Wachovia Bank and Corestates Bank, where she was responsible for client relationships and portfolio management. Ms. Joliet also served as an advisory board member for the Vision Center at Children’s Hospital Los Angeles, and a member of Know the Glow Foundation. She received a B.S. at the University of Scranton and earned an M.B.A. from Marywood University. Ms. Joliet has a strong background in financing, acquisitions, deal structuring, strategic planning and operational integration.
George E. Marucci, Jr.
George E. Marucci, Jr. serves as an independent director on our Board of Directors. Mr. Marucci is an accomplished finance executive and entrepreneur in various industries and fields. Mr. Marucci serves as the Lead Valuation Director on our Audit Committee. Mr. Marucci currently serves as a marketing consultant for BMW North America, chair of a leading automotive family office in Baltimore and golf commentator for Fox Sports Television. Previously, Mr. Marucci was the co-owner, president and acting chief financial officer for Pennmark Automotive Enterprises, a luxury automobile dealership which employed 450 employees and generated $300 million in annual sales. Previously, Mr. Marucci was the co-owner and president of Pennmark Real Estate Investment Group, which specialized in commercial real estate and development, including the development and operation of 50 Walmart retail centers. Prior to owning and operating these companies, Mr. Marucci served as an investment advisor and stockbroker at White Weld and Co. and Merrill Lynch. In those roles, Mr. Marucci was responsible for institutional sales and client development. Mr. Marucci began his career with a family-based accounting firm, Marucci, Ortals and Co. Mr. Marucci received a B.A. in Accounting in 1974 from The University of Maryland.
Susan C. Schnabel serves as Chairperson of our Audit Committee of our Board of Directors. Ms. Schnabel is the co-founder and managing partner of aPriori Capital Partners, an independent leveraged buyout fund advisor. aPriori Capital Partners was created in connection with the spin-off of DLJ Merchant Banking Partners from Credit Suisse in 2014. Prior to forming aPriori Capital, Ms. Schnabel worked at Credit Suisse from 1998 to 2014 where she served as a managing director in the Asset Management Division and co-head of DLJ Merchant Banking. Ms. Schnabel formerly served on the boards of numerous public companies, including Neiman Marcus, STR Holdings, Rockwood Holdings Inc. and Shoppers Drug Mart. She also serves on the Board of Trustees of Cornell University, the California Institute of Technology – Investment Committee, the US Olympic and Paralympic Foundation Board of Directors, and the Board of Directors of the Los Angeles Music Center Foundation. Ms. Schnabel earned a Bachelor of Science in Chemical Engineering from Cornell University and an M.B.A. from Harvard Business School.
Al Rabil serves on our Board of Directors. Mr. Rabil is the CEO of Kayne Anderson Capital Advisors, L.P., overseeing strategic initiatives, operations, and asset management across Kayne’s investment platforms. In 2007, Rabil co-founded Kayne Anderson’s real estate private equity platform (KA Real Estate) and continues to serve as KA Real Estate’s CEO, setting strategic direction, overseeing overall investment activities, and leading fundraising for all KA Real Estate investments.
Immediately prior to co-founding KA Real Estate, Rabil founded and was a principal of two real estate investment firms, RAMZ, LLC and Rabil Properties, LLC, where he developed and acquired a portfolio of more than $250 million of off-campus student housing properties. This was preceded by an almost ten-year stint at UBS, where Rabil served as a Managing Director and Head of Real Estate Banking for the Americas and Europe. During his tenure there, he played a key role in making UBS a market leader in both syndicated debt and large loan CMBS, consummating more than $25 billion in transactions. Rabil began his career in the Real Estate Finance Group of the Bankers Trust Company.
Rabil earned a B.A. cum laude from Yale University in 1985 and an M.B.A. in Finance from Columbia University in 1988.
Terrence J. Quinn
Terrence J. Quinn is our vice chairman and serves on our Board of Directors. Mr. Quinn is the vice chairman for Kayne Anderson and is responsible for managing our new business opportunities and client relations. He is a member of the firm’s board of directors, oversees the private credit group and serves on the firm’s Credit, Real Estate and Growth Private Equity Investment Committees.
Prior to joining Kayne Anderson in 2006, Mr. Quinn was a founding partner of a merchant banking firm specializing in private equity and advisory services. He was president and chief executive officer of five operating companies and member of the executive committee of a leading regional bank. Mr. Quinn was manager of pensions and investments for the 3M Company and founding chief executive officer of a leading mezzanine fund group.
Mr. Quinn has served on the boards of directors of several public and private firms, and was a founding member of the board of Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and of Kayne Anderson Energy Total Return Fund, Inc.
Mr. Quinn earned a B.A. in Economics in 1973 and an M.B.A. from the University of Minnesota in 1974.
James C. Baker
James C. Baker is our President and Chief Executive Officer. He is Kayne Anderson’s head of public retail funds and co-head of Kayne Anderson’s energy infrastructure marketable securities group, which is part of the firm’s infrastructure investment team.
Prior to joining Kayne Anderson in 2004, Mr. Baker was a director in the energy investment banking group at UBS Securities LLC. At UBS, he focused on securities underwriting and mergers and acquisitions in the midstream industry. Prior to joining UBS in 2000, Mr. Baker was an associate in the energy investment banking group at PaineWebber Incorporated.
Mr. Baker currently serves as president, chief executive officer and chairman of the board of Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure Fund, Inc. (NYSE: KMF). He also serves as a director of the board of Expression Therapeutics, a biotechnology company based in Atlanta. Mr. Baker previously served on the boards of directors of K-Sea Transportation Partners L.P., Petris Technology, Inc. and ProPetro Services, Inc.
Mr. Baker earned his B.B.A. in Finance from the University of Texas at Austin and an M.B.A. in Finance from Southern Methodist University.
Douglas L. Goodwillie
Douglas L. Goodwillie serves as our co-chief investment officer. Mr. Goodwillie is a managing partner and co-head of Kayne Anderson’s private credit group, which is a part of the credit investment team, and has over 20 years of experience in middle market lending, underwriting over $4.0 billion in loans during his career.
Prior to joining Kayne Anderson in November 2011, Mr. Goodwillie was a director at LBC Credit Partners, a middle market private debt fund with over $1.5 billion under management. At LBC, he was responsible for originating senior and mezzanine loan transactions. Mr. Goodwillie also served as a rotational member of the LBC’s Investment Committee. Prior to joining LBC, Mr. Goodwillie was an operating director at Arsenal Capital Partners in New York where he led the firm’s capital markets efforts and served as an industry specialist in the financial services vertical sector. Mr. Goodwillie spent seven years at Dymas Capital Management in Chicago, a leading middle market finance company where he was responsible for originating, underwriting and managing senior and junior middle market loans. Mr. Goodwillie began his career with Gleacher Partners where he was focused on leveraged lending and mergers and acquisition advisory.
Mr. Goodwillie holds a B.A. from Kenyon College and an M.B.A. from the University of Chicago.
Kenneth B. Leonard
Kenneth B. Leonard serves as our co-chief investment officer. Mr. Leonard is a managing partner and co-head of Kayne Anderson’s private credit group, which is part of the credit investment team.
Prior to joining Kayne Anderson in 2011, Mr. Leonard was with Cerberus Capital Management, L.P. where he was a co-founder of Dymas Capital Management and helped lead the development of a middle market, private equity focused lending business. Prior to joining Cerberus Capital Management, L.P., Mr. Leonard was a senior vice president in the Merchant Banking Syndications Team at GE Capital from 2001 to 2002. From 1998 to 2001 he was in charge of the Corporate Finance Syndications Team of Heller Financial. From 1995 to 1998, he served as an investment professional in the Turnaround Private Equity Group of Heller Investments, Inc. From 1986 to 1995, he served in a variety of lending positions at Heller Financial, including real estate, asset- based lending and cash flow lending.
Mr. Leonard is a graduate of the University of Iowa and received an M.B.A. from Northwestern University.
Terry A. Hart
Terry A. Hart serves as our chief financial officer and treasurer. Mr. Hart is a senior managing director for Kayne Anderson and serves as chief financial officer of Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure Fund, Inc. (NYSE: KMF). He is responsible for the oversight of accounting, financial reporting, tax and treasury.
Prior to joining Kayne Anderson in 2005, Mr. Hart was a senior vice president and controller at Dynegy, Inc. Prior to that, Mr. Hart served as assistant treasurer and director of structured finance. He began his finance and accounting career in 1992 with Illinova Corporation, which was acquired by Dynegy, Inc. in 2000.
Mr. Hart earned a B.S. in Accounting from Southern Illinois University in 1991 and an M.B.A. from the University of Illinois in 1999.
Michael J. O’Neil
Michael J. O’Neil serves as our chief compliance officer and secretary. Mr. O’Neil also serves as the chief compliance officer and secretary of Kayne Anderson and of Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure Fund, Inc. (NYSE: KMF). Prior to joining Kayne Anderson, Mr. O’Neil was a compliance officer at BlackRock Inc., where he was responsible for regulatory compliance matters related to trading and portfolio management activities across equity, fixed income and alternative assets.
Mr. O’Neil earned a B.A. in International Business and Management from Dickinson College and M.B.A. and L.L.M. degrees from Boston University.
John B. Riley
John. B. Riley serves as our vice president. Mr. Riley is a controller for Kayne Anderson.
Prior to joining Kayne Anderson in 2006, he was a director of reporting for Key Energy Services, Inc. Prior to that, Mr. Riley served as a financial controller for Noble Corporation and a manager of corporate reporting & analysis / corporate internal control for Dynegy, Inc. Mr. Riley began his accounting career in 1998 with PricewaterhouseCoopers, LLP.
Mr. Riley earned a B.B.A. in Accounting and an M.B.A. from Baylor University in 1998. Mr. Riley is a Certified Public Accountant (CPA) in the State of Texas.
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