UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22435

Kayne Anderson Energy Development Company

(Exact name of registrant as specified in charter)

811 Main Street, 14^th Floor

Houston, Texas 77002

(Address of principal executive offices) (Zip code)

David Shladovsky, Esq.

KA Fund Advisors, LLC

811 Main Street, 14^th Floor

Houston, Texas 77002

(Name and address of agent for service)

Registrant’s telephone number, including area code: (713) 493-2020

Date of fiscal year end: November 30, 2017

Date of reporting period: August 31, 2017

TABLE OF CONTENTS

Item 1.    Schedule of Investments.

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY

SCHEDULE OF INVESTMENTS

AUGUST 31, 2017

(amounts in 000’s)

(UNAUDITED)

Description	No. of Shares/Units		Value
Long-Term Investments — 159.2%
Equity Investments(1) — 159.2%
Midstream MLP — 131.6%
Andeavor Logistics LP		206	$	10,248
Antero Midstream Partners LP		57		1,918
Arc Logistics Partners LP		366		6,079
Buckeye Partners, L.P.		145		8,314
Crestwood Equity Partners LP		102		2,534
DCP Midstream, LP		209		6,726
Dominion Midstream Partners, LP — Convertible Preferred Units(2)(3)(4)		106		3,240
Enbridge Energy Partners, L.P.		301		4,584
Energy Transfer Partners, L.P.		1,986		37,754
EnLink Midstream Partners, LP		423		6,867
Enterprise Products Partners L.P.(5)		964		25,137
EQT Midstream Partners, LP		84		6,377
Global Partners LP		297		5,145
Magellan Midstream Partners, L.P.		62		4,205
MPLX LP		383		13,138
NGL Energy Partners LP		285		2,548
NuStar Energy L.P		60		2,429
Phillips 66 Partners LP		70		3,349
Plains All American Pipeline, L.P.(6)		387		8,387
Plains GP Holdings, L.P.(6)		70		1,574
Plains GP Holdings, L.P. — Plains AAP, L.P.(3)(6)(7)		345		7,750
Shell Midstream Partners, L.P.		161		4,447
Spectra Energy Partners, LP		110		4,881
Sprague Resources LP		99		2,544
Summit Midstream Partners, LP		120		2,522
Tallgrass Energy Partners, LP		227		10,726
TC PipeLines, LP		69		3,631
Western Gas Partners, LP		428		21,871
Williams Partners L.P.		709		27,950
				246,875
Midstream Company — 22.6%
Kinder Morgan, Inc.		137		2,642
ONEOK, Inc.		410		22,215
Tallgrass Energy GP, LP		79		2,121
Targa Resources Corp.		346		15,401
				42,379
Shipping MLP — 5.0%
Capital Product Partners L.P. — Class B Units(2)(3)(8)		606		4,624
Golar LNG Partners LP		220		4,836
				9,460
Total Long-Term Investments — United States — 159.2% (Cost — $281,138)				298,714

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY

SCHEDULE OF INVESTMENTS

AUGUST 31, 2017

(amounts in 000’s)

(UNAUDITED)

Description	Value
Debt	$	(64,000	)
Mandatory Redeemable Preferred Stock at Liquidation Value		(25,000	)
Deferred Income Tax Liability		(31,106	)
Income Tax Receivable		8,003
Other Assets in Excess of Other Liabilities		1,033
Net Assets Applicable To Common Stockholders	$	187,644

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

  (2) Fair valued security.

  (3) The Company’s ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2017, the aggregate value of restricted securities held by the Company was $15,614 (5.0% of total assets), which included $7,750 of Level 2 securities and $7,864 of Level 3 securities.

  (4) On December 1, 2016, the Company purchased, in a private placement, Series A Convertible Preferred Units (“DM Convertible Preferred Units”) from Dominion Midstream Partners, LP (“DM”). The DM Convertible Preferred Units are senior to the common units in terms of liquidation preference and priority of distributions and pay a quarterly distribution of $0.3135 per unit for the first two years and thereafter will pay the higher of (a) $0.3135 per unit or (b) the distribution that the DM Convertible Preferred Units would receive on an as converted basis. For the first two years, the distribution may be paid, at DM’s option, in cash or in units. After two years, the distribution will be paid in cash. The DM Convertible Preferred Units are subject to a lock-up agreement through December 1, 2017. Holders of the DM Convertible Preferred Units may convert on a one-for-one basis to DM common units any time after December 1, 2018.

  (5) In lieu of cash distributions, the Company has elected to receive distributions in additional units through the partnership’s dividend reinvestment program.

  (6) The Company believes that it is an affiliate of Plains All American Pipeline, L.P. (“PAA”), Plains GP Holdings, L.P. (“PAGP”) and Plains AAP, L.P. (“PAGP-AAP”).

  (7) The Company’s ownership of PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or PAA units at the Company’s option. The Company values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of August 31, 2017, the Company’s PAGP-AAP investment is valued at PAGP’s closing price.

  (8) Class B Units are convertible on a one-for-one basis into common units of Capital Product Partners L.P. (“CPLP”) and are senior to the common units in terms of liquidation preference and priority of distributions (liquidation preference of $9.00 per unit). The Class B Units pay quarterly cash distributions and are convertible at any time at the option of the holder. The Class B Units paid a distribution of $0.21375 per unit for the third quarter.

From time to time, the Company’s ability to sell certain of its investments is subject to certain legal or contractual restrictions. For instance, private investments that are not registered under the Securities Act of 1933, as amended (the “Securities Act”), cannot 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 August 31, 2017, the Company held the following restricted investments:

Investment	Acquisition Date	Type of Restriction	Number of Units (in 000’s)		Cost Basis (GAAP)		Fair Value		Fair Value Per Unit		Percent of Net Assets			Percent of Total Assets
Level 2 Investments
Plains GP Holdings, L.P. — Plains AAP, L.P.(1)
Partnership Interests	(2)	(3)		345	$	1,902	$	7,750	$	22.48		4.1	%		2.5	%
Level 3 Investments(4)
Capital Product Partners L.P.
Class B Units	(2)	(5)		606	$	3,457	$	4,624	$	7.63		2.5	%		1.5	%
Dominion Midstream Partners, LP
Convertible Preferred Units	12/1/16	(5)		106		2,803		3,240		30.54		1.7			1.0
Total					$	6,260	$	7,864				4.2	%		2.5	%
Total of all restricted securities					$	8,162	$	15,614				8.3	%		5.0	%

  (1) The Company values its investment in Plains AAP, L.P. (“PAGP-AAP”) on an “as exchanged” basis based on the higher public market value of either Plains GP Holdings, L.P. (“PAGP”) or Plains All American, L.P. (“PAA”). As of August 31, 2017, the Company’s PAGP-AAP investment is valued at PAGP’s closing price.

  (2) Security was acquired at various dates during prior fiscal years.

  (3) The Company’s investment in PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or PAA units at the Company’s option. Upon exchange, the PAGP shares or PAA units will be freely tradeable.

  (4) Securities are valued using inputs reflecting the Company’s own assumptions.

  (5) Unregistered or restricted security of a publicly-traded company.

At August 31, 2017 the cost basis of investments for federal income tax purposes was $213,486. At August 31, 2017, gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

Gross unrealized appreciation	$	91,376
Gross unrealized depreciation		(6,148	)
Net unrealized appreciation	$	85,228

The cost basis for federal income 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 above.

As required by the Fair Value Measurement Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 820”), the Company has performed an analysis of all assets and liabilities (other than deferred taxes) measured at fair value to determine the significance and character of all inputs to their fair value determination.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories.

• Level 1 — Valuations based on quoted unadjusted prices for identical instruments in active markets traded on a national exchange to which the Company has access at the date of measurement.

• Level 2 — Valuations based on 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 the Company’s assets measured at fair value on a recurring basis at August 31, 2017, and the Company presents these assets by security type and description on its Schedule of Investments. Note that the valuation levels below are not necessarily an indication of the risk or liquidity associated with the underlying investment.

	Total		Quoted Prices in Active Markets (Level 1)		Prices with  Other Observable Inputs (Level 2)			One or More Unobservable Inputs (Level 3)
Assets at Fair Value
Equity investments	$	298,714	$	283,100	$	7,750	(1)	$	7,864

(1) The Company’s investment in 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 Company’s option. The Company values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of August 31, 2017, the Company’s PAGP-AAP investment is valued at PAGP’s closing price. The Company categorizes its investment as a Level 2 security for fair value reporting purposes.

The Company did not have any liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at August 31, 2017. For the nine months ended August 31, 2017, there were no transfers between Level 1 and Level 2.

The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended August 31, 2017.

	Equity Investments
Balance — November 30, 2016	$	12,033
Purchase		2,800
Transfers out to Level 1 and 2		(7,839	)
Realized gains (losses)		—
Unrealized gains (losses), net		870
Balance — August 31, 2017	$	7,864

The purchase of $2,800 relates to the Company’s investment in Dominion Midstream Partners, LP convertible preferred units (December 2016).

The transfers out of $7,839 relates to the Company’s investment in Western Gas Partners, LP convertible preferred units that were converted into common units during the first and second quarters of 2017. The Company utilizes the beginning of reporting period method for determining transfers between levels.

The $870 of unrealized gains relate to investments that were still held at the end of the reporting period.

As required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification (ASC 815), the following are the derivative instruments and hedging activities of the Company.

As of August 31, 2017 the Company did not have any derivative instruments outstanding.

The following table sets forth the effect of the Company’s derivative instruments on the Company’s operations:

		For the Nine  Months Ended August 31, 2017
Derivatives Not Accounted for as Hedging Instruments	Location of Gains/(Losses) on Derivatives Recognized in Income	Net Realized Gains/(Losses) on Derivatives Recognized in Income		Net Change in Unrealized Gains/(Losses) on Derivatives Recognized  in Income
Call options written	Options	$	39	$	157

The Company’s investments are concentrated in the energy sector. The focus of the Company’s portfolio within the energy sector may present more risks than if the Company’s portfolio were broadly diversified across numerous sectors of the economy. A downturn in the energy sector would have a larger impact on the Company than on an investment company that does not focus on the energy sector. The performance of securities in the energy sector may lag the performance of other industries or the broader market as a whole. Additionally, to the extent that the Company invests a relatively high percentage of its assets in the securities of a limited number of issuers, the Company may be more susceptible than a more widely diversified investment company to any single economic, political or regulatory occurrence. At August 31, 2017, the Company had the following investment concentrations.

Category	Percent of Long-Term Investments
Securities of energy companies		100.0%
Equity securities		100.0%
Securities of MLPs (1)		82.6%
Largest single issuer		12.6%
Restricted securities		5.2%

(1) Securities of MLPs consist of preferred and common units of private entities structured as limited partnerships and publicly traded energy-related master limited partnerships and limited liability companies that are treated as partnerships for federal income tax purposes and their affiliates.

Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Company’s semi-annual report previously filed with the Securities and Exchange Commission on form N-CSR on July 28, 2017 with a file number 811-22435.

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 www.kaynefunds.com; or on the website of the Securities and Exchange Commission, www.sec.gov.

Item 2.    Controls and Procedures.

(a) As of a date within 90 days of the filing date of this report, the principal executive officer and the 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, as amended (the “1940 Act”)) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 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.

The certifications for the principal executive officer and the principal financial officer of the registrant as required by Rule  30a-2(a) under the 1940 Act are filed as 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.

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY
/S/ KEVIN S. MCCARTHY
Name:	Kevin S. McCarthy
Title:	Chairman of the Board of Directors and Chief Executive Officer
Date:	October 30, 2017

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.

/S/ KEVIN S. MCCARTHY
Name:	Kevin S. McCarthy
Title:	Chairman of the Board of Directors and Chief Executive Officer
Date:	October 30, 2017
/S/ TERRY A. HART
Name:	Terry A. Hart
Title:	Chief Financial Officer and Treasurer
Date:	October 30, 2017