Newsletter Edition 69
15.05.2025
Kayne Anderson Closes $2.25B Energy Income Fund III, Surpassing Target
Kayne Anderson has closed its third energy income fund, Kayne Private Energy Income Fund III (KPEIF III), with $2.25 billion in capital commitments—well above its original $1.5 billion target. The raise reflects renewed institutional interest in income-generating oil and gas strategies amid ongoing market volatility.
The fund continues Kayne Anderson’s focus on backing upstream private energy companies with stable, cash-flow-producing assets. Building on the success of its predecessor funds, KPEIF III targets high-quality operators producing from existing wells, aiming to deliver predictable distributions along with long-term capital appreciation—an approach that has proven appealing to income-focused limited partners.
“We see today’s market as a compelling entry point and are confident our strategy is well positioned to navigate market volatility and create significant value for our investors,” said Mark Teshoian, Co-Head of Kayne Energy Private Equity.
Kayne’s energy income platform has now deployed over $3.7 billion across 15 portfolio companies through KPEIF I, II, III, and affiliated co-investments. The firm emphasized the consistency and performance of its strategy over the past decade as key drivers of investor confidence.
KPEIF III has already begun putting capital to work. In April, the fund committed $400 million in equity to South Wind Exploration & Production, an operator led by the former management team of Flywheel Energy, a previous Kayne-backed company that was successfully exited last year.
The oversubscribed close of KPEIF III underscores a broader resurgence of investor interest in traditional energy, particularly among LPs seeking stable yield in uncertain economic conditions.
https://www.buyoutsinsider.com/kayne-anderson-nabs-2-25bn-for-third-private-energy-fund/
Carlyle Seeks $1.2B Syndicated Loan to Refinance Hexaware Debt
The Carlyle Group is pursuing a $1.2 billion syndicated loan to refinance debt tied to its 2021 acquisition of Indian IT services provider Hexaware Technologies, according to a Bloomberg report citing unnamed sources familiar with the matter.
The five-year facility is being underwritten by a consortium of eight banks, including Citigroup, Deutsche Bank, and HSBC. It will replace the $1 billion bond originally issued by Carlyle’s special purpose vehicle, CA Magnum Holdings, as part of the Hexaware buyout. The new loan is expected to be priced at 333 basis points over the Secured Overnight Financing Rate (SOFR) and is currently being marketed to the broader credit markets.
Carlyle has not issued a public comment on the refinancing.
The move follows Hexaware’s successful $1 billion IPO in February—India’s largest listing of the year so far—which drew strong demand from global institutional investors, including the Government of Singapore and Abu Dhabi Investment Authority. The listing boosted the company’s market profile and provided Carlyle with a partial exit, while setting the stage for the debt refinancing.
Carlyle acquired a 95% stake in Hexaware in 2021 in a transaction that was part-financed through the $1 billion note issuance. Headquartered in Mumbai, Hexaware provides IT and business process outsourcing services to a global client base spanning industries such as banking, healthcare, and manufacturing. The company has seen steady growth under Carlyle’s ownership, buoyed by digital transformation demand across global enterprises.
The refinancing reflects broader trends in the leveraged finance market, where private equity sponsors are increasingly replacing high-yield bonds with syndicated loans or private credit in search of better pricing and flexible terms.
https://www.privateequitywire.co.uk/carlyle-seeks-1-2bn-hexaware-syndicated-loan-deal/
Blackstone Targets $5.6B for New GP Stakes Fund Amid Rising Demand for Liquidity Solutions
Blackstone is seeking to raise at least $5.6 billion for its latest general partner (GP) stakes fund, according to a Bloomberg report citing sources familiar with the matter. The new vehicle will match the size of its 2021 predecessor, reflecting sustained investor appetite for minority stakes in private equity firms despite a slower dealmaking environment.
The fund is part of Blackstone’s GP Stakes platform, which focuses on acquiring passive equity positions in alternative asset managers. This strategy allows private equity firms to unlock liquidity, fund expansion, or facilitate succession planning—all while retaining operational control. For Blackstone and its investors, these stakes offer exposure to recurring fee income and carried interest from established managers.
Though Blackstone declined to comment, the fundraising effort is reportedly being actively marketed to institutional investors as a stable, cash-generating opportunity within the broader private markets ecosystem. The initiative is now housed under Blackstone’s secondaries platform following an internal reorganisation, and is led by senior executive Josh Blaine.
Blackstone’s GP stakes portfolio includes investments in well-known firms such as GTCR, Leonard Green & Partners, Sentinel Capital Partners, Nautic Partners, and American Industrial Partners. The strategy targets firms managing at least $5 billion in assets.
The move comes as more private equity firms turn to minority stake sales amid a tougher capital-raising climate. Industry-wide, GP stakes investing has gained traction as a structural solution for both liquidity and growth, particularly with institutional LPs. A recent McKinsey & Co survey found that 43% of private equity investors now allocate capital to GP stakes strategies, citing their income resilience during market downturns.
Competition in the space continues to heat up. Blue Owl Capital and Goldman Sachs’ Petershill Partners are also actively pursuing similar investments. Blue Owl, one of the pioneers of the strategy, has backed Vista Equity Partners, Bridgepoint, and recently partnered with Abu Dhabi’s Lunate to expand its reach among mid-sized GPs.
As of March 31, Blackstone managed $1.2 trillion in total assets, with GP stakes forming a growing part of its alternative investment strategy.