Kayne Anderson Rudnick, a $28 billion investment manager and RIA, has partnered with Mercury Capital Advisors to launch the Mercury Solariant Renewable Energy Fund I.
The fund is structured as a master-feeder fund. Mercury is the sponsor, which provides the investment vehicle, Solariant Capital is the investment advisor and KAR Wealth Advisors is the initial investor in the fund.
The master-feeder fund structure allows the fund to pool capital from US and overseas investors into one fund, through which they can gain exposure to renewable energy projects that are developed and operated by Solariant Capital in Japan.
The fund will be available to KAR clients who are qualified purchasers.
Allen Kim, director of manager research and investment solutions at KAR, said the firm has been looking for a niche private equity strategy, uncorrelated to the wider equity market.
‘Given the fully valued nature of the equity markets and the very low spread environment for fixed income markets, we really needed to venture out and find out whether or not there could be other areas that are not as prevalent or as popular as some of the more popular investments such as the typical infrastructure investment or late-stage private equity or venture capital so forth,’ he said.
Kim, who oversees $4 billion in the firm’s wealth advisory arm, is responsible for KAR’s discretionary multi-asset and multi-manager investment products, plus the model portfolio tactical allocation. The model portfolios have five risk profiles and are populated by a recommended list of approximately 30 funds.
He also works with a team of performance attribution analysts to assess and evaluate investment managers, and with a group of portfolio management associates to manage the global multi-asset model portfolios.