UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-21593      

KAYNE ANDERSON MLP INVESTMENT COMPANY

(Exact name of registrant as specified in charter)

1800 Avenue of the Stars, Second Floor, Los Angeles, California		90067
(Address of principal executive offices)		(Zip code)

David Shladovsky, Esq.

KA Fund Advisors, LLC, 1800 Avenue of the Stars, Second Floor, Los Angeles, California 90067

(Name and address of agent for service)

Registrant’s telephone number, including area code:         (310) 556-2721      

Date of fiscal year end:         November 30, 2008      

Date of reporting period:         February 29, 2008      

 

 

Item 1:		Schedule of Investments

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008
(amounts in 000’s)
(UNAUDITED)

		No. of
Description		Shares/Units				Value
Long-Term Investments - 168.0%
Equity Investments(a)(b) - 167.5%
Midstream MLP - 129.4%
Atlas Pipeline Partners, L.P.			417			$	18,486
Boardwalk Pipeline Partners, LP			522				12,375
Buckeye Partners, L.P.(c)			156				7,642
Copano Energy, L.L.C.			3,429				125,002
Copano Energy, L.L.C. — Class E Units(d)(e)			157				4,997
Crosstex Energy, L.P.			2,963				93,664
DCP Midstream Partners, LP			142				5,163
Duncan Energy Partners L.P.			193				4,077
Eagle Rock Energy Partners, L.P.			134				2,007
El Paso Pipeline Partners, L.P.			774				18,152
Enbridge Energy Management, L.L.C.(f)			669				34,983
Enbridge Energy Partners L.P.			1,400				69,957
Energy Transfer Partners, L.P.			3,875				185,673
Enterprise Products Partners L.P.			5,279				163,481
Global Partners LP(c)			1,452				39,671
Hiland Partners, LP			162				8,206
Holly Energy Partners, L.P.			209				8,582
Kinder Morgan Management, LLC(f)			2,719				148,237
Magellan Midstream Partners, L.P.			3,636				157,486
MarkWest Energy Partners, L.P.			2,183				75,309
Martin Midstream Partners L.P.			295				9,999
NuStar Energy L.P.			463				24,754
ONEOK Partners, L.P.			875				54,302
Plains All American Pipeline, L.P.(g)			3,112				148,586
Regency Energy Partners LP			1,949				57,815
SemGroup Energy Partners, L.P.			208				5,183
Spectra Energy Partners, LP			272				6,713
Sunoco Logistics Partners L.P.			100				5,374
Targa Resources Partners LP			398				9,655
TC PipeLines, LP			1,298				44,337
TEPPCO Partners, L.P.			677				25,556
Williams Partners L.P.			453				16,821
Williams Pipeline Partners L.P.(e)			242				4,792
							1,597,037
Propane MLP - 8.4%
Ferrellgas Partners, L.P.			877				20,079
Inergy, L.P.			2,839				82,939
							103,018
Shipping MLP - 2.4%
Capital Product Partners L.P.			121				2,438
K-Sea Transportation Partners L.P.			221				7,974
OSG America L.P.			207				2,904
Teekay LNG Partners L.P.			329				9,895
Teekay Offshore Partners L.P.			263				6,658
							29,869
Coal MLP - 5.5%
Clearwater Natural Resources, LP — Unregistered(d)(h)(i)			3,889				51,334
Natural Resource Partners L.P.			236				7,581
Penn Virginia Resource Partners, L.P.			319				8,519
							67,434

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS — (CONTINUED)
FEBRUARY 29, 2008
(amounts in 000’s)
(UNAUDITED)

		No. of
Description		Shares/Units				Value
Upstream MLP - 10.0%
Atlas Energy Resources, LLC			1,649			$	54,881
BreitBurn Energy Partners L.P.			1,427				31,430
BreitBurn Energy Partners L.P. - Unregistered(d)			556				11,479
Constellation Energy Partners LLC			956				20,067
Dorchester Minerals, L.P.			74				1,571
Legacy Reserves LP			193				4,103
							123,531
MLPAffiliates - 8.2%
Atlas Pipeline Holdings, L.P.			76				2,418
Buckeye GPHoldings L.P.			206				5,773
Crosstex Energy, Inc.			54				1,927
Energy Transfer Equity, L.P.			464				15,440
Enterprise GPHoldings L.P.			1,342				42,175
Hiland Holdings GP, LP			141				3,503
Magellan Midstream Holdings, L.P.			1,147				29,509
							100,745
Other MLP- 3.5%
Calumet Specialty Products Partners, L.P.			685				20,653
Exterran Partners, L.P.			700				22,956
							43,609
Other - 0.1%
Omega Navigation Enterprises, Inc.			91				1,335
Total Equity Investments (Cost $1,476,340)							2,066,578

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS — (CONCLUDED)
FEBRUARY 29, 2008
(amounts in 000’s)
(UNAUDITED)

	Interest				Maturity				Principal
	Rate				Date				Amount				Value
Fixed Income Investment — 0.5%
Coal MLP — 0.5%
Clearwater Natural Resources, LP(d)(h) (Cost — $6,142)			(j)			12/03/09			$	6,142				6,142
Total Long-Term Investments (Cost — $1,482,482)														2,072,720
Short-Term Investment — 0.0%
Repurchase Agreement — 0.0%
Bear, Stearns & Co. Inc. (Agreement dated 2/29/08 to be repurchased at $383), collateralized by $395 in U.S. Treasury Bonds (Cost $383)			1.850	%		3/03/2008								383
Total Investments — 168.0% (Cost — $1,482,865)														2,073,103
Liabilities
Auction Rate Senior Notes														(505,000	)
Deferred Taxes														(211,725	)
Revolving Credit Line														(21,000	)
Other Liabilities														(9,153	)
Unrealized Depreciation on Interest Rate Swap Contracts														(31,164	)
Total Liabilities														(778,042	)
Income Tax Receivable														1,161
Other Assets														12,862
Total Liabilities in Excess of Other Assets														(764,019	)
Preferred Stock at Redemption Value														(75,000	)
Net Assets Applicable to Common Stockholders													$	1,234,084

From time to time, certain of the Company’s investments may be restricted as to resale. For instance, securities that are not registered under the Securities Act of 1933 and cannot, as a result, be offered for public sale in a non-exempt transaction without first being registered. In other cases, certain of the Company’s investments have restrictions such as lock-up agreements that preclude the Company from offering these securities for public sale.

At February 29, 2008 the Company held the following restricted investments:

 

 

 

At February 29, 2008, the cost basis of investments for Federal income tax purposes was $1,373,959. At February 29, 2008, gross unrealized appreciation and depreciation of investments for Federal income tax purposes were as follows:

Gross unrealized appreciation		$	749,664
Gross unrealized depreciation			(50,520	)
Net unrealized appreciation		$	699,144

The identified cost basis for federal tax purposes is estimated based on information available from the Company’s portfolio companies. In some cases, this information is very limited. Accordingly, the actual cost basis may prove higher or lower than the estimated cost basis included in this footnote.

Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Company’s annual report previously filed with the Securities and Exchange Commission on Form N-CSR on February 7, 2008, with a file number 811-21593.

Other information regarding the Company is available in the Company’s most recent annual report. This information is also available on the Company’s website at http://www.kaynefunds.com; or on the website of the Securities and Exchange Commission, http://www.sec.gov.

SFAS No. 157.  In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements.

     As of December 1, 2007, the Company adopted SFAS No. 157. The Company has performed an analysis of all existing investments and derivative instruments to determine the significance and character of all inputs to their fair value determination. Based on this assessment, the adoption of this standard did not have any material effect on the Company’s net asset value. However, the adoption of the standard does require the Company to provide additional disclosures about the inputs used to develop the measurements and the effect of certain measurements on changes in net assets for the reportable periods as contained in the Company’s periodic filings.

     SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories.

	•	Level 1 — Quoted unadjusted prices for identical instruments in active markets to which the Company has access at the date of measurement.
	•	Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
	•	Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Company’s own assumptions that market participants would use to price the asset or liability based on the best available information.

     The following table presents our assets and liabilities measured at fair value on a recurring basis at February 29, 2008.

 

     The following table presents our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at November 30, 2007 and at February 29, 2008.

 

     The $10,079 of unrealized gains, presented in the table above relate to investments that are still held at February 29, 2008.

     The Company did not have any liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at November 30, 2007 and at February 29, 2008.

Item 2:		Controls and Procedures

     (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.

     (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3:		Exhibits

1.

The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.