PGIM Private Capital provided $12.5B in private debt to middle-market companies in 2020

Rhea-AI Summary

PGIM Private Capital provided $12.5 billion in senior debt and junior capital to nearly 200 middle-market companies globally in 2020, reflecting resilience during the COVID-19 pandemic. The firm’s portfolio reached a record $100 billion in assets under management. Notable 2020 achievements include $10.9 billion in investment-grade investments and 80 new issuers added to the portfolio. The firm completed fundraising for PGIM Capital Partners VI, L.P., exceeding its target with $2.23 billion in commitments, showcasing its strong investment strategy and commitment to the middle market.

Positive

• Provided $12.5 billion of senior debt and junior capital to 200 companies globally.
• Portfolio grew to a record $100 billion in assets under management.
• $10.9 billion in investment-grade investments, second largest annual volume for the firm.
• 80 new issuers added to the portfolio, indicating growth and diversification.
• Completed fundraising for PGIM Capital Partners VI, exceeding the $2.23 billion target.

Negative

• None.

PGIM Private Capital provided $12.5 billion of senior debt and junior capital to nearly 200 middle-market companies and projects globally in 2020, signifying strength and stability during the COVID-19 pandemic. PGIM Private Capital is a leading source of private debt for public and private companies and is the private capital arm of PGIM, the $1.5 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).

Allen Weaver, Senior Managing Director and Head of PGIM Private Capital President and CEO, PGIM Real Estate (Photo: Business Wire)

“Our steady global investment pace through the COVID-19 pandemic demonstrates the depth of our global network and our commitment to supporting existing and new relationships,” said Allen Weaver, senior managing director and head of PGIM Private Capital. “During volatile market conditions, partnerships are pressure tested, and we responded to the uncertainty with resilience for both our borrowers and investors.”

PGIM Private Capital’s portfolio grew to a record $100 billion in assets under management at year-end.

2020 Highlights:

• $10.9 billion of investment-grade investments, the second largest recorded annual volume for the firm; $1.2 billion of below-investment-grade investments; $338 million of mezzanine and private equity investments.
• 80 new issuers across a range of industries added to the portfolio and 107 existing borrower companies returned for further funding.
• $8.1 billion in Global Corporate Finance investments across North America, the U.K., Europe, Latin America and Australasia.
• $3.7 billion in real assets sectors, including energy, power, infrastructure and credit tenant lease financing.
• $727 million in Direct Lending transactions, across 15 transactions.
• Record year of clubbing activity, with eight transactions totaling over $2.0 billion combined commitments.
• Completed fundraising for PGIM Capital Partners VI, L.P., surpassing the fund’s fundraising target with capital commitments of $2.23 billion.

PGIM Private Capital saw strong activity in Europe, including a $150 million shelf facility with Mecalux, enabling the Spanish family-owned business to draw capital on an as-needed basis.

PGIM Private Capital’s Real Assets platform originated $1.3 billion in energy projects, including lead anchor in a $300 million club deal for Texas Eastern Transmission, an 8,835-mile regulated interstate natural gas pipeline running from the Texas gulf coast to New York to serve local distribution companies, power generators, upstream producers, and natural gas marketers.

Said Weaver, “Our strong performance in 2020, despite the continued global pandemic, reaffirms our commitment to the middle-market and consistent investment approach through all economic cycles. We hope to maintain this momentum into 2021 while balancing risk and opportunities for our investors.”

About PGIM Private Capital

PGIM Private Capital manages more than $20 billion in outside non-affiliated assets through its Institutional Asset Management unit and Alternative Investments unit, comprised of Direct Lending, PGIM Capital Partners and PGIM Energy Partners mezzanine funds. PGIM Private Capital manages a $100 billion portfolio of private placements and mezzanine investments through its regional office network (Atlanta; Chicago; Dallas; Frankfurt, Germany; London; Los Angeles; Mexico City¹; Milan; Minneapolis; Newark, New Jersey; New York; Paris; San Francisco and Sydney²) and purchases up to $13 billion annually in predominantly senior debt and junior capital. All data as of Dec. 31, 2020. For more information, please visit pgimprivatecapital.com.

About PGIM

PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world³ with $1.5 trillion in assets under management as of Dec. 31, 2020. With offices in 16 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.
³ Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005659/en/

FAQ

What were PGIM Private Capital's 2020 financial highlights?

In 2020, PGIM Private Capital provided $12.5 billion in capital, with $10.9 billion being investment-grade investments and a total portfolio of $100 billion in assets.

How did PGIM Private Capital perform during the COVID-19 pandemic?

PGIM Private Capital demonstrated resilience by maintaining a strong investment pace and supporting nearly 200 companies globally.

What is the significance of PGIM Capital Partners VI, L.P.'s fundraising?

The fundraising for PGIM Capital Partners VI, L.P. surpassed its target with $2.23 billion in commitments, reflecting strong investor confidence.