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Prudential Capital Group private placement portfolio reaches record high

PRU

Prudential Capital Group private placement portfolio reaches record high

Prudential Capital Group, a leading source of private capital for public and private companies, provided more than $5.3 billion of private capital in the first half of 2016 to companies and projects globally, increasing its overall portfolio to a record high of approximately $76 billion in total assets as of June 30, 2016. Prudential Capital Group is the private placement arm of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).

Stable source of funding despite volatility

“For more than 75 years, Prudential Capital Group’s commitment to investing in long-term relationships has allowed us to consistently offer financial support to high-quality private and public companies around the world – even during periods of sustained volatility,” said Allen A. Weaver, senior managing director and head of Prudential Capital Group. “In a year where market uncertainty and volatility have made private capital all the more difficult to access, our long- standing relationships have allowed us to continue to serve as a stable source of funding to the middle market.”

Prudential Capital Group has seen growth in the first half of 2016, while private placement volumes are reported to be down across the industry over the same time period. Highlights for 2016 include:

  • $4.5 billion of investment grade transactions; $471 million of below-investment grade transactions; $287 million of mezzanine and private equity investments
  • Realized $146.4 million from full and partial exits/cash-outs in nine mezzanine investments
  • About $1.8 billion in investments in North America
  • Approximately $1.6 billion invested outside of North America, primarily in the U.K., Europe and Australia*
  • Approximately $1.1 billion in energy sector investments, including power and oil and gas
  • Approximately $840 million in other key sectors such as infrastructure, equipment and distressed financing

“As we look ahead, we expect to carefully extend our reach and corporate finance capabilities, which include increasing our junior capital offerings to companies outside of North America,” said Weaver. “We will also continue to expand our geographic footprint to match our portfolio’s composition and the opportunities we are seeing in private markets worldwide.”

Prudential Capital Group has been a leading provider of private debt, mezzanine and equity securities to more than 1,000 companies globally since its inception, investing on behalf of Prudential and its third-party clients.

The company helps middle market companies diversify capital sources, building a foundation that complements relationships with their banks or other sources of funding; or in some instances, becoming a client’s primary source of funding, providing private capital for debt refinancing, growth, acquisition financing, stock repurchases, recapitalizations and buyouts. Prudential Capital Group’s regional office origination network includes 35 investment teams throughout North America, the U.K., Europe and Australia*. For more information, please visit www.prudentialcapitalgroup.com.

*Operates through PGIM (Australia) Pty Ltd

About PGIM

PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents and had more than US$1 trillion in assets under management as of June 30, 2016. For more information, please visit http://www.pgim.com.

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of June 30, 2016, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.

Media:
Prudential Financial, Inc.
Mayura Hooper, +1 973-367-7930
mayura.hooper@prudential.com



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