Kayne Anderson Capital Advisors LP (KACALP) and Ares Management LP will terminate their definitive merger agreement, subsidiary KA Fund Advisors LLC (KAFA) said Oct. 27.

The companies’ views on how to proceed with the business combination during the current market conditions differed. They decided it was best not to pursue the transaction at this time, KAFA said.

Ares, its affiliates and some of its principals will invest $150 million into KACALP’s energy activities, including private equity, private income, and infrastructure marketable securities funds managed by KACALP. The two firms will also look for additional collaborative marketing opportunities, including jointly managing separately managed accounts or other products.

Stockholder approvals of new investment management agreements for Kayne Anderson MLP Investment Co., Kayne Anderson Energy Total Return Fund Inc., Kayne Anderson Midstream/Energy Fund Inc. and Kayne Anderson Energy Development Co. (the funds) were required under the merger agreement because of the pending change of control of KAFA.

These approvals are no longer necessary, and the boards of directors of the funds have withdrawn the proposals for new investment management agreements and canceled the special stockholder meetings scheduled for Oct. 30.

Kevin McCarthy and J.C. Frey, the co-portfolio managers of these funds, will continue managing them KAFA will continue to serve as their investment adviser and the existing investment management agreements will remain in place.