PGIM Private Capital provides nearly $6.7B of senior debt and junior capital globally in 1H 2023

Rhea-AI Summary

PGIM Private Capital provided nearly $6.7 billion of senior debt and junior capital to more than 120 middle-market companies and projects globally in the first half of 2023.

Positive

• PGIM Private Capital provided $4.5 billion of investment-grade investments, $1.8 billion of below-investment-grade investments, $352 million of mezzanine and private equity investments. They also entered into an agreement to acquire a majority interest in Deerpath Capital Management.

Negative

• None.

CHICAGO--(BUSINESS WIRE)-- PGIM Private Capital provided nearly $6.7 billion of senior debt and junior capital to more than 120 middle-market companies and projects globally in the first half of 2023. PGIM Private Capital is a source of private debt for public and private companies and is the private capital arm of PGIM, the $1.27 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).

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Matt Douglass, Senior Managing Director at PGIM Private Capital (Photo: Business Wire)

“This year has seen continued high demand for private credit solutions as other sources of finance have become more scarce. The ability to originate loans directly with companies gives us a unique insight into the condition of middle-market companies, and it’s clear that the need for private credit is significant and growing,” said Matt Douglass, senior managing director and head of PGIM Private Capital. “In spite of volatile markets and a challenging macroeconomic background, our teams’ experience through multiple credit cycles and a stable capital base has allowed us to both be a reliable source of capital for businesses worldwide and provide quality investment opportunities for our investors.”

First-Half 2023 Highlights:

• $4.5 billion of investment-grade investments, $1.8 billion of below-investment-grade investments, $352 million of mezzanine and private equity investments.
• 51 new issuers across a range of industries added to the portfolio and 78 existing borrower companies returned for further funding.
• $3.7 billion in Global Corporate Finance investments across North America, the U.K., Europe, Latin America and Australasia.
• $1.9 billion in real assets sectors, including energy, power, infrastructure, credit tenant lease financing, and structured credit.
• $352 million of mezzanine investments including two new energy platforms through PGIM Energy Partners, PGIM Private Capital’s middle-market energy fund.
• Over $1.4 billion in Direct Lending transactions across more than 30 transactions.
• Entered into an agreement to acquire a majority interest in Deerpath Capital Management, a U.S. private credit and direct lending manager focused on primarily financing private equity sponsor-backed companies in the lower middle market.

PGIM Private Capital’s Direct Lending platform reached a record first half of activity for the firm, with more than $1.4 billion originations globally. The platform continues to expand globally, with the team closing the first direct lending transaction in the Netherlands, providing Continental Candy Industries, a European private label producer of confectionery products, with financing to support the company’s growth strategy.

PGIM Private Capital’s Real Assets platform also continues to expand internationally across Continental Europe, Australia and Latin America through our local presence and industry experience. Notably the team closed direct transactions with a toll road operator in Spain and a pipeline operator in Colombia.

ABOUT PGIM PRIVATE CAPITAL

PGIM Private Capital manages a $98.6 billion portfolio of private placements, mezzanine, and direct lending investments through its regional office network (Atlanta; Chicago; Dallas; Frankfurt, Germany; London; Los Angeles; Madrid; Mexico City¹; Milan; Minneapolis; Newark, N.J; New York; Paris; San Francisco; and Sydney²) and purchases up to $16 billion annually in predominantly senior debt and junior capital. PGIM Private Capital manages more than $20 billion in outside non-affiliated assets through its Institutional Asset Management unit and Alternative Investments unit, comprising Direct Lending, PGIM Capital Partners and PGIM Energy Partners mezzanine funds. All data as of March 31, 2023. For more information, please visit pgimprivatecapital.com.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), a global investment manager with more than $1.2 trillion in assets under management as of March 31, 2023. With offices in 18 countries, 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 public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.

1 The Mexico City office operates through PGIM Real Estate Mexico S.C.

2 The Sydney office operates through PGIM (Australia) Pty Ltd.

In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorized and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorized and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions or licenses available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).­­

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230712521615/en/

MEDIA CONTACT

Guy Nicholls

+ 44 (0)20-7766-2400

guy.nicholls@pgim.com

Source: PGIM

What is the total amount of debt and capital provided by PGIM Private Capital in the first half of 2023?

PGIM Private Capital provided nearly $6.7 billion of senior debt and junior capital to more than 120 middle-market companies and projects globally in the first half of 2023.

What types of investments did PGIM Private Capital make in the first half of 2023?

PGIM Private Capital made $4.5 billion of investment-grade investments, $1.8 billion of below-investment-grade investments, and $352 million of mezzanine and private equity investments.

What acquisition did PGIM Private Capital enter into?

PGIM Private Capital entered into an agreement to acquire a majority interest in Deerpath Capital Management, a U.S. private credit and direct lending manager focused on primarily financing private equity sponsor-backed companies in the lower middle market.