1. 717 Texas Avenue, Suite 3100 Houston, Texas 77002 Tel 713.493.2000 1800 Avenue of the Stars, Second Floor Los Angeles, California 90067 Tel 800.231.7414 www.kayneenergy.com Kayne Anderson Energy Funds August 7, 2008 IPAA Capital Markets Breakfast

2. 2 Firm Background  With offices in Los Angeles and Houston, Kayne Anderson Capital Advisors manages approximately $9 billion in assets and employs over 100 people. Distinct teams of investment professionals are dedicated to the various investment strategies managed by the firm. Approximately $6.6 billion (75%) dedicated to the energy industry Kayne Anderson Capital Advisors, L.P. Private Equity Energy Group $1.85 Billion raised in 4 funds Investments in 50+ oil and gas companies since 1992 12 investment professionals (10 in Houston, 2 in Los Angeles) 2 new hires in Houston in August Closed End Fund Group (NYSE: KYN, KYE and KED) $3.8 Billion in Assets Hedge Fund Group (Marketable Securities) $2.4 Billion in Assets Private Equity Group (Non-Control Investments) $600 Million raised Energy Investments (Public Companies) $900 Million in Assets Non-Energy

3. 3 Private Equity Environment: 1998 vs. 2007

4. 4 Source: International Energy Agency (World Energy Outlook 2006 published in November 2006). Global Crude Oil Production Decline

5. 5 Barnett Shale Production Profile Source:Petro Data Source and Simmons & Company International. Cotton Valley Production Profile Woodford Shale Production ProfilePinedale Anticline Production Profile Avg. Decline Rate: First 12 Months: 65% First 36 Months: 43% Avg. Decline Rate: First 12 Months: 68% First 36 Months: 43% Avg. Decline Rate: First 12 Months: 63% First 36 Months: 39% Avg. Decline Rate: First 12 Months: 70% First 36 Months: 43% U.S. Natural Gas Decline Treadmill

6. 6 Energy Private Equity Capital Markets Source: Oil and Gas Investor. ($ in millions)

7. 7 Competition  From Mafiosi to Mr. Rogers  Greater Access  Creative and Flexible Strategies – Solution Oriented  Timing  Quantity vs. Quality ProsCons Energy Private Equity Capital Markets

8. 8 Capital Raising Pre-Requisites  Track record  Keep a running tally of deals, value added to projects and returns  Strategy  Put simply, “How do you plan to make money?”  Save the Mission Statement for Jerry Maguire  Do your homework  You won’t know my favorite band (Yaz), but at least know that I don’t do gas storage projects in Kurdistan