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Prudential Capital Group Provides $5.3B in Private Debt to Middle-Market Companies in First Half

July 20, 2018, 07:00 AM
Filed Under: Industry News

Prudential Capital Group provided $5.3 billion of senior debt and junior capital to middle-market companies and projects globally in the first half of 2018.

"Our global footprint and our origination platform have enabled us to meet borrower demand across corporate finance, energy, infrastructure, commercial asset finance and credit tenant lease sectors," said Allen Weaver, senior managing director and head of Prudential Capital Group. "More than half of transactions this year have been with existing borrowers, demonstrating the strength of 75 years of financing and our relationship-first approach."

First Half 2018 Highlights Include:

  • $4.5 billion of investment grade investments; $420 million of below-investment-grade investments; $343 million of mezzanine and private equity investments
  • 38 new clients across a range of industries added to the portfolio and 56 existing clients returned for further funding
  • $1.8 billion in North American Corporate Finance investments
  • $2.3 billion invested in the U.K., Europe, Latin America and Australasia
  • Approximately $853 million invested in the energy sector
  • Approximately $639 million invested in key sectors, such as global infrastructure, credit tenant lease and commercial asset financing

Prudential Capital Group saw strong activity in Europe, Latin America and Australia, including a $75 million port financing provided to Trabajos Maritimos S.A., which is one of the first traditional corporate private placements in Peru. Latin America has been a growing focus for Prudential Capital, which created a dedicated Latin American team in 2015. Since then, Prudential Capital has invested nearly $2.5 billion in Latin America, with six transactions so far in 2018.

“Latin America has a strong base of both public and private companies,” said Marie Fioramonti, managing director and head of Pricoa Capital Group, the international arm of Prudential Capital Group. “These building businesses need long-term capital to fuel growth. Despite the political noise in the region, we are continuing to meet that need. When other capital providers are pulling back, Prudential Capital Group remains active. It’s how we’ve built our market share around the world — we are a consistent long-term financial partner, through ups and downs, supporting long-term growth.”

Prudential Capital also provided $1.5 billion in the U.K. and Europe including $250 million to French company Sodexo, strengthening a long-time relationship that includes three previous market transactions. Sodexo chose to issue directly with Prudential Capital after a decade-long relationship and proven track record.

Mezzanine activity more than doubled year-over-year for the same six-month period, following a record year of mezzanine originations with $525 million invested in 2017. Prudential Capital provided $343 million in mezzanine and private equity investments through Prudential Capital Partners, the middle-market mezzanine and equity fund business sponsored by Prudential Capital Group, and through their Energy Junior Capital Program, focused on mezzanine investing in the energy sector. In January 2017, Prudential Capital Partners launched its fifth mezzanine fund focused on North America and Europe with more than $1.8 billion of committed capital. Since the launch, 40 percent of the fund has been committed.

“Our global office network is tapping into the optimism of closely held, middle-market businesses. We are seeing record non-sponsored demand for our flexible mezzanine solutions,” said Jeffrey Dickson, managing partner of Prudential Capital Partners.

In total, Prudential Capital added 38 new relationships to the portfolio and expanded relationships through new transactions with 56 repeat clients.

Said Weaver, “In an industry where capital can seem like a commodity and relationships are often fleeting and transactional, we pride ourselves on building close and enduring local partnerships based on a steady and patient commitment to our clients’ long-term capital needs.”

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