Growth Investor with GrowthCap‘s RJ Lumba Private Credit Strategist: Kayne Anderson’s Frank Karl
Mar 25, 2026
Frank Karl, Managing Director of Kayne Anderson Private Credit and President of Kayne Anderson BDC, brings deep middle-market lending experience. He discusses the firm’s origins, focus on senior secured loans to stable, 'boring' industries, conservative deal structures, why they launched a public BDC, and plans for measured AUM growth.
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Focused Middle Market Lending Drives Better Risk Returns
- Kayne Anderson Private Credit targets core middle-market companies with $10–$75M EBITDA to find better risk-adjusted returns.
- Their median portfolio company EBITDA is ~$35M, differentiating them from lenders chasing much larger $200M+ EBITDA platforms.
Avoid Trendy Sectors To Preserve Capital
- The team prefers stable, staple industries and avoids software to preserve capital and reduce headline risk.
- They target businesses growing around GDP+ that trade ~7–10x and typically lever ~4x, allowing conservative covenantable structures.
Build Reputation Over Time To Win Competitive Deals
- Build a consistent track record in one market to earn credibility with sponsors and borrowers.
- Frank says reputation for doing what you promise matters more than showing up with capital for the first time.