First Merchants vs Kayne Anderson Energy Infrastructure Fund

First Merchants and Kayne Anderson Energy Infrastructure Fund are compared on business models, financial performance, and market context. This page presents neutral, accessible analysis to help readers understand similarities and differences without recommending actions. Educational content, not financial advice.

First Merchants and Kayne Anderson Energy Infrastructure Fund are compared on business models, financial performance, and market context. This page presents neutral, accessible analysis to help reader...

Comparison Snapshot

Key Financial Metrics

FRME

Metric

KYN

$2.18B

Market Cap

$2.08B

15.94%

Potential Profit

N/A

Buy

Analyst Rating

N/A

Investment Analysis

First Merchants

FRME

Pros

Net income rose 44% year-on-year in Q2 2025, reflecting strong profitability and efficient capital utilisation.
Commercial loan growth and robust deposit increases signal solid core business momentum and market share gains.
Attractive valuation with a price-to-earnings ratio below 10x, suggesting potential upside relative to earnings growth.

Considerations

Recent executive share sales may raise questions about insider confidence in future growth prospects.
Revenue declined slightly in 2024 compared to the prior year, indicating possible headwinds in top-line expansion.
Regional banking focus exposes the company to local economic cycles and concentrated credit risk.

Kayne Anderson Energy Infrastructure Fund

KYN

Pros

Offers a high distribution yield above 7.5%, supported by stable cash flows from energy infrastructure assets.
Diversified exposure to midstream, utilities, and renewable infrastructure with long-term contracts underpinning earnings.
Simplified tax reporting structure with no K-1s or UBTI, making it attractive for retail investors.

Considerations

Heavy reliance on energy sector performance exposes the fund to commodity price volatility and regulatory risks.
Expense ratio is relatively high at 16%, which may erode returns over time compared to lower-cost alternatives.
Closed-end fund structure can lead to persistent premiums or discounts to net asset value, affecting liquidity and pricing.

About The Companies

First Merchants (FRME)

First Merchants Corporation (ticker FRME) is a regional bank holding company headquartered in Indiana that operates community banks and provides commercial and consumer lending, deposit services and treasury management across several Midwestern states. With a market capitalisation around $2.13 billion, it concentrates on relationship banking for local businesses and households, aiming for steady loan growth and fee income. Key factors for investors include net interest margin trends, credit quality, deposit stability and capital ratios — all of which are sensitive to interest‑rate cycles and local economic conditions. The group has pursued modest expansion through a mix of organic growth and selective acquisitions while maintaining dividend distributions. That said, performance can vary with economic cycles, regulatory change and sector concentration risks. This information is educational and not personalised investment advice; investors should review up‑to‑date financial reports, consider their risk tolerance and consult a financial professional before making decisions.

Kayne Anderson Energy Infrastructure Fund (KYN)

Kayne Anderson MLP/Midstream Investment Company, known by its ticker KYN, is a closed-end investment fund that offers a way to invest in the North American energy infrastructure market. Its main goal is to achieve a high total return for its investors, with a particular emphasis on providing cash distributions. The fund invests at least 80% of its assets in energy infrastructure companies. This includes 'midstream' companies, which are involved in the transportation, storage, and processing of oil and gas, as well as renewable infrastructure companies and utilities. As a closed-end fund, it issues a fixed number of shares that trade on an exchange. For investors, this type of fund can offer exposure to a specific sector, but it's important to remember that the value of the investment can fall as well as rise, and returns are not guaranteed. The fund's performance is closely tied to the broader energy market.

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

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Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

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Comparison Snapshot