CONTENTS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:    This report of Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund”) contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Fund’s filings with the Securities and Exchange Commission (“SEC”). You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained.

All investments in securities involve risks, including the possible loss of principal. The value of an investment in the Fund could be volatile, and you could suffer losses of some or a substantial portion of the amount invested. The Fund’s concentration of investments in energy infrastructure companies subjects it to the risks of the energy sector, including the risks of declines in energy and commodity prices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws. Leverage creates risks that may adversely affect return, including the likelihood of greater volatility of net asset value and market price of common shares and fluctuations in distribution rates, which increases a stockholder’s risk of loss.

Performance data quoted in this report represent past performance and are for the stated time period only. Past performance is not a guarantee of future results. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
ADOPTION OF AN OPTIONAL DELIVERY METHOD FOR SHAREHOLDER REPORTS

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

December 22, 2022

Dear Fellow Stockholders:

We hope that you and your families are well and enjoying the holiday season.

This year’s annual letter is designed to provide a concise summary of KMF’s performance, portfolio, and outlook. As discussed in this letter, we are very excited about the Fund’s prospects. While we readily acknowledge that the near-term economic outlook is uncertain, we believe that the multi-decade tailwinds for KMF’s investments outweigh any short-term challenges.

KMF generated very strong returns over the last 12 months — most energy infrastructure companies performed well, with stock price returns far in excess of the S&P 500 index. Active portfolio management played a role in KMF’s excellent year, as performance benefited from our decision to “overweight” the midstream subsector and reduce the Fund’s exposure to the renewable infrastructure subsector (in particular, companies with significant exposure to international markets).(1) Active management of the Fund’s balance sheet also influenced performance. In the face of heightened volatility in financial markets and rising interest rates, we reduced leverage during fiscal 2022. We made this decision to enable the Fund to better navigate “choppy” market conditions, which seem to be the one constant in the financial markets these days. Higher marginal borrowing costs also played a role in this decision. While KMF’s returns would have been modestly higher had we not reduced leverage, we believe lower leverage levels are in the long-term best interest of the Fund’s stockholders.

Importantly, what happened during fiscal 2022 is only a portion of the story for KMF. It has been approximately 2.5 years since we announced a strategic shift in the Fund’s portfolio, which — in our opinion — has been a success. As we discussed at that time, our goal was to better position the Fund to take advantage of a “megatrend” in the energy industry, the energy transition.(2) As a result of this portfolio repositioning, KMF currently holds a diverse mix of energy infrastructure investments, including midstream companies, utilities, and renewable infrastructure companies. We are very pleased with KMF’s performance thus far — the Fund’s Net Asset Return is 90.7% since we made these changes.(3)(4) The energy transition continues to gain traction as one of the most attractive macro investment themes within the investment community. Importantly, the Fund’s flexible investment mandate enables it to capitalize on another key theme in the energy industry — energy security. KMF is a nimble investment vehicle that can dynamically capitalize on industry trends, and we believe this flexibility will continue to benefit the Fund’s stockholders.

Fiscal 2022 was a very eventful year for the energy industry. Throughout the year topics such as high commodity prices, growing usage of renewable energy, carbon capture & sequestration, and liquefied natural gas (“LNG”) exports frequented the front pages of mainstream news sources across the globe. While this renewed interest in the energy markets is partially attributable to market disruptions resulting from the war in Ukraine, it is our view that energy literacy among global citizens and policymakers will result in constructive energy policies over the longer term. A key global challenge today is the acute need for more sources of lower carbon energy. We believe the companies in the Fund’s portfolio will be at the forefront of helping to solve this problem.

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Endnotes can be found on page 7.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

Why Invest in KMF?

We routinely try to put ourselves “in the shoes” of our investors and ask: What is KMF’s value proposition for investors? In our opinion, KMF — with its flexible investment mandate, permanent capital base, and expertise providing capital solutions to both public and private companies — is a very attractive vehicle for investors seeking exposure to the energy infrastructure industry in an income-producing vehicle. The outlook for these types of companies is compelling for many reasons, including:

•   Access to affordable and reliable energy is critical to the global economy, as evidenced by international developments throughout 2022. Energy infrastructure plays a vital role in facilitating this access by connecting producers and end users;

•   To align with and achieve global net zero targets, annual energy transition related investments must increase sixfold from $755 billion in 2021 to approximately $4.5 trillion by the end of the decade(5);

•   European nations’ pursuit of reliable, alternative sources of energy has created a new frontier of commercial opportunities for energy infrastructure companies;

•   Policy developments supporting the energy transition — namely, the Inflation Reduction Act in the U.S. — create decades-long visibility on cash flows and an attractive runway for long-term growth;

•   Global demand for energy (with a premium on cleaner sources of energy) is expected to steadily increase over the next several decades — driven primarily by growth in developing economies; and

•   Energy infrastructure companies have stable cash flows, operate businesses with increasingly high barriers to entry, and, in many cases, have contractual protections to offset higher levels of inflation.

In short, KMF provides investors exposure to the durable megatrends of global decarbonization and energy security. The Fund is a unique way to capitalize on the sector’s favorable outlook. Further, KMF provides this exposure to investors in a very easy-to-own structure — daily liquidity via the NYSE listing, an attractive quarterly distribution, and the tax simplicity of a single Form 1099.

Performance and Distributions

KMF generated a total Net Asset Return of 20.9% in fiscal 2022.(4) We were pleased with this performance on the heels of a 33.7% return in fiscal 2021. KMF outperformed its benchmark by 830 basis points in fiscal 2022.(6) As you can see in the table below, midstream companies were the best performing energy infrastructure subsector for the second consecutive year. Renewable infrastructure companies performed the weakest during fiscal 2022, with higher interest rates (and inflation), supply chain pressure, and concerns about the outlook for European and Asian economies weighing on equity price performance.

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Endnotes can be found on page 7.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

KMF’s Market Return, which is based on stock price performance rather than Net Asset Value, was 21.8% for fiscal 2022.(11) This exceeded our Net Asset Return as our stock price traded at a 18.2% discount to NAV at fiscal year-end compared to a 18.9% discount at the beginning of the year.

We are disappointed in KMF’s current trading relationship relative to NAV, and we continue to assess options to narrow this discount. In the short term, narrowing this discount can be an elusive goal. We will not hesitate to consider actions that we expect to have a sustained impact, but we do not anticipate utilizing strategies that are unlikely to result in a lasting solution. While we will carefully consider all actions suggested by our stockholders, our decisions will be guided by what we believe is in the best interests of all of our investors. To that end, one of our most important long-term goals is to provide investors with an attractive distribution because we continue to believe that consistent performance, along with a substantial return of cash to shareholders through quarterly distributions, will be rewarded over time in the form of a narrowing discount.

KMF’s current quarterly distribution rate is 16¢ per share, a level that we believe is sustainable based on our current outlook. Our goal is to steadily increase KMF’s distribution over time, as supported by the Fund’s operating results.

In determining KMF’s distribution, the Fund’s board of directors considers both the income we receive from our investments as well as capital appreciation in the portfolio. We take a long-term view when making this determination and are not overly influenced by fluctuations in quarterly operating results. We expect that the returns generated by our portfolio companies over the next few years will accrue to the Fund in a balanced combination of income and capital appreciation.

Portfolio Positioning and Outlook

In many ways, fiscal 2022 ushered in a “long forgotten” era for financial markets. Inflation rose to levels not seen since the early 1980s and remains stubbornly high. The Federal Reserve has engaged in a very aggressive tightening cycle and short-term interest rates rose to levels not seen in decades. As investors digested the potential for a global recession, SPACs and NFTs ceded market share to “old economy” stocks like Exxon Mobil and Berkshire Hathaway. Unsettled capital markets and heightened geopolitical risk drove a flight to investments with defensive attributes, and many of KMF’s portfolio investments have benefited from this shift in investor sentiment.

As part of the strategic shift during fiscal 2020, we meaningfully increased the Fund’s holdings of U.S. utilities and renewable infrastructure companies to capitalize on the accelerating transition to lower carbon energy. At the end of that year, those two subsectors comprised approximately one-half of KMF’s portfolio. We have since reduced our holdings in renewable infrastructure companies as we believed the midstream sector offered a better near-term value proposition. While we continue to have conviction on the intermediate to longer-term outlook for the renewable sector, we tactically position the portfolio in the short term for the most attractive risk-adjusted returns. The pie chart below summarizes KMF’s allocations to key energy infrastructure subsectors at the end of fiscal 2022. At year end, combined investments in NextGen companies, which includes most of our investments in the renewable infrastructure, U.S. utilities, and natural gas & LNG subsectors, represents approximately 60% of the

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Endnotes can be found on page 7.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

portfolio.(12) The Fund’s Benchmark for fiscal 2023 has similar subsector allocations as were used in fiscal 2022.(13) Importantly, this benchmark should be seen as a directional target for subsector allocations over the intermediate term — we do not believe rigid portfolio allocation guidelines are in stockholders’ best interests.

As we contemplate the outlook for the next few years, we believe energy infrastructure companies are positioned for success — business fundamentals for the companies in our portfolio are excellent, corporate governance is greatly improved, and balance sheets are as healthy as any time in the past decade. Furthermore, the defensive attributes of these businesses compare favorably in the current economic environment. Importantly, fundamentals in the broader energy markets remain constructive. Global energy demand is poised to exceed pre-COVID levels and is set to grow consistently over the next decade. North American energy companies remain steadfastly committed to generating free cash flow, returning capital to shareholders, and growing production at a responsible pace. Collective adherence to this “new” business model bodes well for the stability of the domestic midstream and natural gas & LNG subsectors over the next decade.

Additionally, we are witnessing a permanent, seismic shift in the nature of global energy supply and demand: an understanding that not all molecules and electrons are created equal. Unfortunately, we are also witnessing how disruptive it is when energy is not readily available. The megatrends of decarbonization and energy security have collided to create a durable, global “bid” on low-carbon, responsibly produced, secure sources of energy. More than 70 countries (including China, the U.S., and the European Union) and 3,000 corporations have set net zero targets, and consistent progress towards these goals create enormous near-term and long-term economic opportunities for KMF’s renewable infrastructure and utility investments.(14)

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Endnotes can be found on page 7.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

Higher interest rates are naturally a headwind for companies with deep project backlogs (including certain companies in KMF’s portfolio), but this is a manageable situation in our view. Between the strong balance sheets of best-in-class companies, billions of dollars in non-dilutive government funding available for energy transition projects, and significant appetite for renewable infrastructure investment in the public and private markets, the sector is positioned to navigate the current market backdrop. At the Fund level, KMF’s balance sheet is positioned for the current interest rate environment. Our decision to utilize fixed-rate leverage (as opposed to floating-rate leverage) should benefit the Fund over the next few years. While approximately one-half of the Fund’s fixed-rate leverage matures during fiscal 2023, leverage expense will not be nearly as high as it otherwise would have been. We have always believed limiting the Fund’s exposure to higher interest rates was the prudent way to operate the business. Further, KMF’s leverage level is conservative, and we have ample downside cushion to dampen the impact of any potential market dislocations.(15)

Domestic legislation like the landmark Inflation Reduction Act and the European Commission’s REPowerEU plan — replete with tax credit extensions, regional incentives, and other policy support mechanisms — create an extremely attractive commercial backdrop for new renewable infrastructure and other energy transition related investments. Commercial traction in emerging energy subsectors continues to accelerate, and we believe energy infrastructure companies are just beginning to capitalize on the multi-decade global decarbonization megatrend.

The energy infrastructure industry today — in its themes, corporate structure, and even its jargon — is fundamentally different than a decade ago. Our diverse team of industry experts embraces this evolution and is well-positioned to capitalize on opportunities emerging from this new landscape. We do this with decades of experience and a deep appreciation for, and understanding of, business cycles and the dangers of chasing investment fads.

We appreciate the trust you have placed in us, and we take this responsibility very seriously. We are very optimistic about the Fund’s prospects moving forward and look forward to executing on our investment objective of achieving high total returns with an emphasis on making cash distributions to our stockholders. Please do not hesitate to contact us with any questions or comments.

Sincerely,

James C. Baker, Jr.

Chairman of the Board

President and Chief Executive Officer

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Endnotes can be found on page 7.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
LETTER TO STOCKHOLDERS

____________

(1)      Whenever we reference “midstream companies”, the “midstream sector” or the “midstream industry” it includes both traditional midstream companies and natural gas & LNG infrastructure companies. Traditional midstream companies are defined as midstream companies that own and/or operate midstream assets related to crude oil, refined products, natural gas liquids or water. Natural gas & LNG infrastructure companies are defined as midstream companies that primarily own and/or operate midstream assets related to natural gas or liquefied natural gas. “Overweight” relative to KMF’s Benchmark detailed in footnote 7.

(2)      Energy transition refers to the global energy sector’s transition to a more sustainable mix of lower carbon and renewable energy sources that results in reduced emissions of carbon dioxide and other greenhouse gases over the next 20 to 30 years.

(3)      Measurement period of May 31, 2020 through November 30, 2022.

(4)      Net Asset Return is defined as the change in net asset value per share plus cash distributions paid during the period (assuming reinvestment through our dividend reinvestment plan).

(5)      Source: BloombergNEF 2022 New Energy Outlook scenarios. BloombergNEF’s modeled scenarios indicate that achieving “net zero” global carbon emissions by 2050 corresponds with 1.75 degrees Celsius of warming.

(6)      Based on the difference between the Fund’s Net Asset Return and the total return of KMF’s Benchmark.

(7)      KMF’s Benchmark is a composite of energy infrastructure companies. For fiscal 2022, this composite is comprised of an 50% weighting to the midstream sector, a 35% weighting to the renewable infrastructure sector and a 15% weighting to the U.S. utility sector. The subsector allocations for this composite were established by Kayne Anderson at the beginning of fiscal 2022 based on the estimated target subsector allocations of the Fund’s assets over the intermediate term. KMF’s portfolio holdings and/or subsector allocations may change at any time. Returns for each period are total returns (assuming reinvestment of dividends).

(8)      The benchmark for the midstream sector is the Alerian Midstream Energy Index (AMNA).

(9)      The benchmark for the renewable infrastructure sector is a composite total return of 41 domestic and international renewable infrastructure and utility companies (calculated on a market-cap weighted basis with individual constituents capped at a 10% weighting).

(10)    The benchmark for the U.S. utility sector is the Utilities Select Sector SPDR (XLU), which is an exchange-traded fund (“ETF”) linked to the Utilities Select Sector Index (IXU), a sub-set of the S&P 500.

(11)    Market Return is defined as the change in share price plus cash distributions paid during the period (assuming reinvestment through our dividend reinvestment program).

(12)    We consider NextGen companies to be energy companies and infrastructure companies that are meaningfully participating in, or benefiting from, the energy transition. For these purposes, we include renewable infrastructure companies, natural gas & LNG infrastructure companies, and certain utility companies.

(13)    For fiscal 2023, KMF’s Benchmark is a composite that is comprised of an 50% weighting to the midstream sector, a 30% weighting to the renewable infrastructure sector and a 20% weighting to the U.S. utility sector. The subsector allocations for this composite were established by Kayne Anderson based on the estimated target subsector allocations of the Fund’s assets over the intermediate term. KMF’s portfolio holdings and/or sector allocations may change at any time.

(14)    Source: United Nations Net Zero Coalition.

(15)    Downside cushion reflects the decrease in total asset value that could be sustained while maintaining compliance with 1940 Act leverage levels and KMF’s financial covenants.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
PORTFOLIO SUMMARY
(UNAUDITED)

Portfolio of Long-Term Investments by Category

Top 10 Holdings by Issuer(1)

(1)  Includes ownership of equity and debt investments.

(2)  Includes ownership of common and preferred units.

(3)  Includes ownership of Plains All American Pipeline, L.P. (“PAA”), Plains GP Holdings, L.P. (“PAGP”) and Plains AAP, L.P. (“PAGP-AAP”).

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

Fund Overview

Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund” or “KMF”) is a non-diversified, closed-end fund that commenced operations in November 2010. Our investment objective is to provide a high level of total return with an emphasis on making cash distributions to our stockholders. We seek to achieve that investment objective by investing at least 80% of our total assets in the securities of Energy Companies and Infrastructure Companies. We expect to invest the majority of our assets in securities of “NextGen” companies which we define as Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. Please see the Glossary of Key Terms for a description of these investment categories and for the meaning of capitalized terms not otherwise defined herein.

As of November 30, 2022, we had total assets of $587 million, net assets applicable to our common stockholders of $464 million (net asset value of $9.82 per share), and 47.2 million shares of common stock outstanding. As of November 30, 2022, we held $570 million in equity investments and $6 million in debt investments.

Results of Operations — For the Three Months Ended November 30, 2022

Investment Income.    Investment income totaled $4.2 million for the quarter. We received $6.7 million of dividends and distributions, of which $2.5 million was treated as return of capital and $0.1 million was treated as distributions in excess of cost basis. Interest income was $0.1 million.

Operating Expenses.    Operating expenses totaled $3.7 million, including $1.8 million of investment management fees, $1.1 million of interest expense, $0.4 million of preferred stock distributions and $0.4 million of other operating expenses.

Net Investment Income.    Our net investment income totaled $0.5 million.

Net Realized Gains.    We had net realized gains of $5.2 million, including $3.3 million of realized gains on forward currency contracts, $0.1 million of net realized gains from option activity and $0.1 million of realized losses on foreign currency transactions.

Net Change in Unrealized Gains.    We had a net decrease in unrealized gains of $13.6 million, including $2.7 million of unrealized losses on forward currency contracts.

Net Decrease in Net Assets Resulting from Operations.    As a result of the above, we had a net decrease in net assets resulting from operations of $7.9 million.

Results of Operations — For the Fiscal Year Ended November 30, 2022

Investment Income.    Investment income totaled $14.4 million. We received $28.1 million of dividends and distributions, of which $13.7 million was treated as return of capital and $0.4 million was treated as distributions in excess of cost basis. Return of capital was increased by $0.6 million during the year due to 2021 tax reporting information that we received in fiscal 2022. Interest income was $0.4 million.

Operating Expenses.    Operating expenses totaled $15.0 million, including $7.7 million of investment management fees, $4.4 million of interest expense, $1.5 million of preferred stock distributions and $1.4 million of other operating expenses.

Net Investment Loss.    Our net investment loss totaled $0.6 million.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

Liquidity and Capital Resources

At November 30, 2022, we had total leverage outstanding of $122 million, which represented 21% of total assets. Total leverage was comprised of $80 million of senior unsecured notes (“Notes”) and $42 million of mandatory redeemable preferred stock (“MRP Shares”). At such date, we had $6 million of cash and cash equivalents. As of January 20, 2023, we had $9 million of borrowings outstanding under our unsecured revolving credit facility (the “Credit Facility”) and we had $2 million of cash.

Our Credit Facility has a total commitment of $50 million and matures on February 24, 2023. The interest rate on borrowings under the Credit Facility may vary between the secured overnight financing rate (“SOFR”) plus 1.40% and SOFR plus 2.25%, depending on our asset coverage ratios. We pay a fee of 0.20% per annum on any unused amounts of the Credit Facility. As of November 30, 2022, we did not have any borrowings under the Credit Facility.

Our unsecured revolving credit facility with Sumitomo Mitsui Banking Corporation (“Bank Facility”) has a total commitment of $20 million. The Bank Facility has a three-year term, maturing August 6, 2024. Borrowings under the Bank Facility will bear interest at a rate of 1-month LIBOR plus 1.35%. The Fund will pay a commitment fee of 0.20% per annum on any unused amounts of the Bank Facility. As of November 30, 2022, we did not have any borrowings under the Bank Facility.

At November 30, 2022, we had $80 million of Notes outstanding that mature between 2023 and 2025 and we had $42 million of MRP Shares outstanding that are subject to mandatory redemption in 2024 and 2026. We have $62 million of Notes that are scheduled to mature in fiscal 2023. We expect to refinance these maturities with borrowings under our Credit Facility and/or Bank Facility, or with cash on hand.

At November 30, 2022, our asset coverage ratios under the Investment Company Act of 1940, as amended (“1940 Act”), were 731% for debt and 481% for total leverage (debt plus preferred stock). We target asset coverage ratios that give us the ability to withstand declines in the market value of the securities we hold before breaching the financial covenants in our leverage. At this time, we target asset coverage ratios that provide at least 40% of cushion relative to our financial covenants (i.e., market values could decline by approximately this amount before our asset coverage ratios would be equal to our financial covenants). Our leverage targets are dependent on market conditions as well as certain other factors and may vary from time to time.

As of November 30, 2022, our total leverage consisted 84% of fixed rate obligations and 16% of floating rate obligations. At such date, the weighted average interest/dividend rate on our total leverage was 3.81%.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2022
(amounts in 000’s, except number of option contracts)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2022
(amounts in 000’s, except number of option contracts)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2022
(amounts in 000’s, except number of option contracts)

____________

(1)    Unless otherwise noted, equity investments are common units/common shares.

(2)    Refer to the Glossary of Key Terms for definitions.

(3)    Foreign security.

(4)    Securities are treated as a qualified publicly-traded partnership for regulated investment company (“RIC”) qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as qualified publicly-traded partnerships. The Fund had 20.4% of its total assets invested in qualified publicly-traded partnerships at November 30, 2022. It is the Fund’s intention to be treated as a RIC for tax purposes.

(5)    The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of November 30, 2022, the aggregate value of restricted securities held by the Fund was $32,990 (5.6% of total assets), which included $9,123 of Level 2 securities and $23,867 of Level 3 securities. See Note 7 — Restricted Securities.

(6)    Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.

(7)    Enterprise Products Partners L.P. (“EPD”) Series A Cumulative Convertible Preferred Units (“EPD Convertible Preferred Units”) are senior to the common units in terms of liquidation preference and priority of distributions, and pay a distribution of 7.25% per annum. The EPD Convertible Preferred Units are convertible into EPD common units at any time after September 29, 2025 at the liquidation preference amount divided by 92.5% of the 5-day volume weighted average price of EPD’s common units at such time.

(8)    This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for RIC qualification purposes.

(9)    The Fund’s ownership of Plains AAP, L.P. (“PAGP-AAP”) is exchangeable on a one-for-one basis into either Plains GP Holdings, L.P. (“PAGP”) shares or Plains All American Pipeline, L.P. (“PAA”) units at the Fund’s option. The Fund values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of November 30, 2022, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2022
(amounts in 000’s, except number of option contracts)

(10)  Security or a portion thereof is segregated as collateral on option contracts written.

(11)  For the purposes of the Fund’s investment policies, it considers NextGen Companies to be Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. For these purposes, the Fund includes Natural Gas & LNG Infrastructure Companies, Renewable Infrastructure Companies and certain Utility Companies as NextGen Companies.

(12)  The Fund believes that it is an affiliate of Streamline Innovations Holdings, Inc. (“Streamline”). See Note 5 — Agreements and Affiliations.

(13)  Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Fund’s option and are senior to common equity and Series A and Series B preferred shares in terms of liquidation preference and priority of distributions. Streamline Series C Preferred Shares are entitled to receive a quarterly dividend beginning in March 31, 2025, at an annual rate of 12.0%, which rate shall increase 2.0% each year thereafter to a maximum rate of 18.0%. Streamline Series C Preferred Shares are redeemable by Streamline at any time after March 31, 2025, at a price sufficient for the Fund to achieve a 20.0% internal rate of return on its investment.

(14)  Security is non-income producing.

(15)  Algonquin Power & Utilities Corp. Convertible Preferred Units (“AQNU”) consist of a 1/20, or 5%, undivided beneficial interest in a $1,000 principal amount remarketable senior note of Algonquin Power & Utilities Corp. (“AQN”) due June 15, 2026, and a contract to purchase AQN common shares on June 15, 2024 based on a reference price determined by the volume-weighted average AQN common share price over the preceding 20 day trading period. AQNU pays quarterly distributions at a rate of 7.75% per annum.

(16)  The rate indicated is the yield as of November 30, 2022.

(17)  The notional amount of call option contracts written is the product of (a) the number of contracts written, (b) 100 (each contract entitles the option holder to 100 units/shares) and (c) the market price of the underlying security as of November 30, 2022.

At November 30, 2022, the Fund’s geographic allocation was as follows:

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2022
(amounts in 000’s, except share and per share amounts)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
STATEMENT OF OPERATIONS
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2022
(amounts in 000’s)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
STATEMENT OF CHANGES IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS
(amounts in 000’s)

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(1)    Distributions on the Fund’s mandatory redeemable preferred stock (“MRP Shares”) are treated as an operating expense under GAAP and are included in the calculation of net investment loss. See Note 2 — Significant Accounting Policies.

(2)    Distributions paid to common stockholders for the fiscal years ended November 30, 2022 and 2021 were characterized as either dividends (eligible to be treated as qualified dividend income) or distributions (return of capital). This characterization is based on the Fund’s earnings and profits.

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2022
(amounts in 000’s)

____________

Supplemental disclosure of cash flow information:

During the fiscal year ended November 30, 2022, interest paid related to debt obligations was $3,978.

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)

See accompanying notes to financial statements.

KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)