LOS ANGELES–(BUSINESS WIRE)–Kayne Partners, the growth equity strategy of Kayne Anderson Capital Advisors, L.P. (“Kayne” or the “Firm”), a leading alternative asset management firm with over $32 billion under management, continued its success in the media and supply chain sectors in 2020. Kayne Partners was very active last year in those sectors, having invested nearly $70 million in three new portfolio companies and realizing three portfolio company investments totaling approximately $400 million in enterprise value in those sectors alone. The three new platform investments were in FreightWaves, Inc., (“FreightWaves”), Signal Automotive Inc. (“Signal”), and Socialedge, Inc. (“CreatorIQ”). The three successful exits were 4C Insights, Inc. (“4C Insights”) (acquired by Mediaocean), Intelligent Imaging Systems Inc. (“Drivewyze”) (minority investment by Sageview Capital), and You i Labs Inc. (“You.i TV”) (acquired by WarnerMedia).
These recent transactions reflect Kayne Partners’ commitment towards leveraging its unique combination of unparalleled resources, domain knowledge, and sourcing ability to identify transformational technology-oriented companies in high-growth niche industries and subsectors. In particular, Kayne Partners targets software or technology-enabled investments in media & telecommunications, supply chain & logistics, financial technology, healthcare IT, security & compliance, and business process outsourcing & automation.
Of the 40 companies in which Kayne Partners has invested, over $300 million has been invested in 21 companies within the media & telecom, and supply chain & logistics sectors. This demonstrates the strategies’ focus on opportunities that disrupt antiquated and unsophisticated business practices through the leveraging of technology. Consistent themes across Kayne Partners targeted investments include the improved ability to collect, synthesize and provide business intelligence around vast amounts of data collection, optimization of complex workflows, and evolution of infrastructure towards cloud computing.
Within the media and telecom sector, a particular focus of Kayne Partners has been towards the trend of converging media platforms; how enterprises are adapting to the creation and distribution of content, and how consumer adoption and exposure to that content continues to evolve.
“Our investment in You.i TV represented our belief several years ago that over-the-top video would see explosive growth, as entertainment companies find new ways to engage their audiences beyond traditional linear television,” said Leon Chen, Managing Partner of Kayne Partners. “WarnerMedia, which was one of You.i TV’s largest customers, acquired the business in December 2020 with the goal of enhancing its HBO Max platform.”
The view of this seismic industry shift also drove Kayne Partners’ investment in 4C Insights, which focused on harnessing the value of data generated from social media and television platforms to allow brands to deliver marketing campaigns more efficiently and effectively across different device mediums. The acquisition of 4C Insights by Mediaocean (and its parent company, Vista Equity Partners) in July 2020, reflected the continued trend of enterprise software companies broadening their reach and breadth of offerings through the acquisition of successful and innovative growth-stage technology businesses. In July 2020, Kayne Partners extended this thesis once again through its investment in CreatorIQ, a SaaS-based technology solution helping power the workflows between brands and the fast-growing influencer marketing channel at scale.
Within supply chain & logistics, Kayne Partners has directed its investments towards technology solutions addressing a complex ecosystem of manufacturers, distributors, brokers, and fleet owners that comprise the space. This has been highlighted through Kayne Partners’ investment in Intelligent Imaging Systems, Inc. (and its wholly owned subsidiary Drivewyze, Inc.) and the company’s minority investment from Sageview Capital in 2020.
“The domestic logistics industry is enormous, fiercely competitive, and also famously slow to adopt technology solutions. The intersection of these phenomena creates a unique opportunity to invest in technology companies that are providing an edge to incumbent operators and a new wave of disruptors alike. Drivewyze is exactly that – it’s fleet-centric technology solutions enable large fleets to save time bypassing weight stations, saving end-customers millions of dollars in time and savings. Secular acceleration of e-commerce has further buoyed the business,” said Nishita Cummings, Managing Partner and Co-Head of Growth Equity at Kayne Partners.
From this thesis has come new investments in 2020 within the supply chain & logistics vertical, including FreightWaves, a market intelligence and data company serving the freight and logistics market through its real-time data and analytics SaaS platform SONAR, an award-winning digital media arm, and its freight industry events platform. In addition, Kayne Partners also recently invested in Signal, a technology-enabled wholesale automotive platform that provides a mission-critical solution to licensed dealerships throughout Canada and the United States, looking to modernize and optimize their supply chain process of buying, selling and managing inventory.
“The current COVID pandemic has highlighted where opportunities exist and put a greater emphasis on the need for real-time visibility and access to data within the supply chain. These challenges have created opportunities for disruption and the application of new digital technologies that we are continuing to explore through new collaborations and investment partnerships,” said Nathan Locke, Managing Partner & Co-Head of Growth Equity at Kayne Partners.
Kayne Partners’ investment strategy focuses on targeting high-growth enterprise software and technology-enabled service companies in the lower middle market across North America. These companies have clear competitive advantages, show an efficient use of capital, and share attractive investment characteristics, including a demonstrated track record of growth and new sales, experienced management teams, and attractive customer bases. The team is also supported by a network of strategic operators with tailored backgrounds to fit Kayne Partners’ investment criteria.
About Kayne Partners
Kayne Partners, the Los Angeles-based dedicated growth private equity group of Kayne Anderson Capital Advisors, L.P., is a leading provider of capital and connections to privately held, high growth, enterprise software and tech-enabled service businesses in North America. Kayne Partners seeks to partner with driven entrepreneurs and provide capital to high growth companies at a transformative point in their life cycle in the following industries: media & telecommunications, supply chain & logistics, financial technology, healthcare IT, security & compliance, and business process outsourcing and automation.
For more information, please visit www.kaynepartners.com.
About Kayne Anderson Capital Advisors
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 over $32 billion in assets (as of 12/31/2020) for institutional investors, family offices, high net worth and retail clients and employs over 350 professionals in five core offices across the U.S.
For more information, please visit www.kaynecapital.com.
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