Kayne Anderson Acquisition Corp. (NASDAQ: KAACU) (“We” or “the Company”) is a blank check company formed as a Delaware corporation for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, which we refer to as our initial business combination. We launched our initial public offering on March 27, 2017 and began trading under the ticker symbol “KAACU” on March 30, 2017. We intend to acquire and operate a business in the energy industry and believe our management team is well suited to identify opportunities that have the potential to generate attractive risk-adjusted returns for our stockholders, although we may pursue a business combination opportunity in any business or industry. For our purposes, we define the energy industry as companies that own and operate assets that are used in or provided services to the energy sector, including, but not limited to, assets used in exploring, developing, producing, transporting, storing, gathering, processing, fractionating, refining, distributing or marketing of natural gas, natural gas liquids, crude oil or refined products.
Our objective is to generate attractive returns for our stockholders. We seek to do this by utilizing a disciplined investment process when reviewing candidates for our initial business combination. Our management team and the investment professionals at Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”) are industry experts with the ability to identify attractive business combination candidates and capitalize on favorable industry trends. The diversity of our operating and investing experience will enable us to consider candidates in multiple sectors within the energy industry (with an emphasis on the midstream and upstream sectors) and target the area with the most compelling potential returns. We believe this flexibility increases the probability of successfully executing on our business strategy.
Our management team and Kayne Anderson have extensive experience in the energy industry—ranging from operating and acquiring companies within multiple sectors of the industry to making public and privately negotiated investments in the industry. We believe this experience makes us very well situated to identify, source, negotiate and execute a business combination with an attractive energy-related target.
Kayne Anderson’s track record in energy investing began in 1992, and since that time the firm has raised eight upstream-focused private equity funds and numerous hedge funds, closed-end funds and separate accounts focused on investing in energy marketable securities. The firm has approximately 60 professionals focused on energy investing, including former industry executives, petroleum engineers, investment bankers and research analysts.
Our business strategy is to identify, combine with and maximize the value of a company with operations in the energy industry. In executing on this strategy, we will look to find a target that
(i) complements the experience of our management team and Kayne Anderson,
(ii) can benefit from our team’s operating and financial expertise and
(iii) represents a compelling investment opportunity.
We will focus our efforts on opportunities where we feel we have a competitive advantage and are best situated to enhance the value of the business after completion of the business combination. The ultimate goal of this business strategy is to maximize stockholder value.
Our management team and the investment professionals at Kayne Anderson have an extensive network of contacts in the energy industry. We believe this network is a key competitive advantage in sourcing potential business combination targets. We also believe that Kayne Anderson’s reputation, experience and track record of making investments in the energy industry will make us a preferred partner for potential business combination targets. We believe many privately held and publicly traded companies in the sector consider Kayne Anderson to be a trusted partner and recognize the firm’s ability to add value and enhance returns.
In addition, we believe the breadth of Kayne Anderson’s investment activities in the energy industry is a competitive advantage. Kayne Anderson is very active in both the midstream and upstream sectors across the capital structure (i.e., both equity and debt investments) in both publicly traded and privately held companies. As a result, Kayne Anderson believes it has a broader window into the energy industry, giving us a better understanding of macro trends, investor expectations and market sentiment.
Business Combination Criteria
Consistent with our business strategy, we have identified the following general criteria and guidelines that we believe are important in evaluating candidates for our initial business combination. We will use these criteria and guidelines in evaluating business combination opportunities, but we may decide to enter into our initial business combination with a target business that does not meet these criteria and guidelines. We intend to focus on candidates that we believe:
- are well positioned to benefit from a recovery in energy industry activity levels and/or increased levels of production from the key domestic shale basins;
- will benefit from our team’s operating expertise, technical expertise, structuring expertise, extensive network, insight and capital markets expertise in the energy industry;
- have opportunities to grow the business through organic growth projects and third-party acquisitions;
- will be well received by public investors and are expected to have good access to the public capital markets;
- are engaged in activities that are consistent with Kayne Anderson’s view of macro trends in the energy industry; and
- are expected to generate attractive risk-adjusted returns for our stockholders.
These criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based, to the extent relevant, on these general guidelines as well as other considerations, factors and criteria that our management may deem relevant. In the event that we decide to enter into our initial business combination with a target business that does not meet the above criteria and guidelines, we will disclose that the target business does not meet the above criteria in our stockholder communications related to our initial business combination, which, as discussed in our prospectus, would be in the form of proxy solicitation materials or tender offer documents that we would file with the SEC.
The description above shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This description above contains statements that constitute “forward-looking statements,” including the anticipated use of the net proceeds of the Company’s initial public offering. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this website relates. Before you invest, you should read the prospectus in that registration statement and the other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov, or on this website. The Company undertakes no obligation to update these statements for revisions or changes after the date of its initial public offering, except as required by law.
An investment in the Company is not an investment in Kayne Anderson or any of its affiliates or investments. The historical results or performance of, or investments made by, Kayne Anderson or any of their respective investments, are not indicative of future results or performance of the Company which may differ materially from the results or performance of Kayne Anderson or any of its affiliates or investments.