Kayne Anderson Senior Credit
Middle Market Credit- Changes in bank regulation continue to drive this opportunity. Historically, banks have been the primary source of borrowed capital to middle market companies. However, Basel III and Dodd- Frank have made it costly for banks to invest in the middle market sector. Today, banks compose less than 15% of market participants, leaving ample room for non- banks to fill the rising demand for capital.
The investment philosophy emphasizes capital preservation by investing in strong, established companies exhibiting strong business value attributes meeting long-developed, well-defined underwriting requirements of the Firm. Investments are completed through secured debt instruments, structured with a full suite of covenants and other contractual rights and protections. KSCF III will generate investment returns through directly sourced, underwritten, negotiated and monitored investments in stable, cash flow-generating middle market businesses that will pay the fund upfront transaction fees and floating-rate interest payments. Investment opportunities will be sourced through the fund’s extensive network of longstanding middle.