The former CEO of Enterprise Products Partners LP is forming a new private midstream partnership with the backing of Kayne Anderson Energy Funds.

Robert G. Phillips, who was president, CEO and a director of Enterprise Products Partners — one of the largest publicly traded midstream partnerships in the country — will head Crestwood Midstream Partners LLC. Phillips was chairman of the general partner of GulfTerra Energy Partners LP until September 2004 when the company merged with Enterprise; he resigned from Enterprise in May (see Daily GPI, May 9; Feb. 15, 2005).

Crestwood, to be based in Houston, will begin with a total equity commitment of $150 million from Kayne Anderson.

“We believe Crestwood brings together one of the most experienced, savvy and highly accomplished teams in the midstream industry,” said Kayne Anderson Senior Managing Director Danny Weingeist. “Crestwood’s well rounded team is in an excellent position to capitalize on investment opportunities available in a sector of the energy industry poised for significant near-term growth.”

Phillips will be joined at Crestwood by Keith B. Forman, Terry L. Morrison and Neel A. Pinge, who have more than 84 years of combined industry experience. Additionally, Phillips has agreed to serve as a senior adviser to KA Fund Advisors LLC, which serves as the advisor to Kayne Anderson MLP Investment Co., Kayne Anderson Energy Total Return Fund and Kayne Anderson Energy Development Co..

Kayne Anderson Energy Funds manages $1.85 billion of capital for investment in the energy industry, and it invests private capital in high-growth midstream, exploration and production and oilfield services companies.

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