FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: Kayne Anderson and Irradiant Partners
RECOMMENDATION:
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Staff Update: Kayne Anderson and Irradiant Partners.
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BACKGROUND:
On June 11, 2021 staff updated Trustees that there was an organizational change at Kayne Anderson Capital Partners. On October 1, Irradiant Partners successfully spun out of Kayne Anderson. Irradiant is led by Mike Levitt, Jon Levinson, and John Eanes.
Mike Levitt stepped down as CEO of Kayne Anderson on June 30, 2021. He partnered with Mr. Levinson and Mr. Eanes to form Irradiant Partners. Irradiant will invest in public and private credit and renewable energy.
SBCERA’s MCA with Kayne Anderson will still govern all existing investments with both firms. Paul Blank, Chief Operating Officer, will continue as SBCERA’s primary contact at Kayne Anderson. Any new activity or contract with Irradiant would require Board approval. We are comfortable with both firms’ ability to manage the existing assets but are reviewing how SBCERA can best utilize each firm going forward.
Kayne Anderson will continue to manage about $222 million is assets for SBCERA and about $157 million in unfunded commitments. Irradiant Partners will manage about $65 million of SBCERA’s assets and about $131 million in unfunded commitments. In total, the MCA account has generated about 10.3% net IRR since inception through September 30, 2021.
COMMITTEE REVIEW:
This item was reviewed by the Investment Committee at its November 16, 2021 meeting.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Jacob Abbott
ATTACHMENTS:
None.