PGIM Private Capital Provides $14.9B of Senior Debt and Junior Capital Globally in 2024

Rhea-AI Summary

PGIM Private Capital, the private capital arm of Prudential Financial (NYSE: PRU), provided $14.9 billion of senior debt and junior capital to over 238 middle-market companies globally in 2024. The financing included $10.5 billion in investment-grade investments, $3.9 billion in below-investment-grade investments, and $574 million in mezzanine and private equity investments.

The company added 116 new issuers and supported 122 existing borrowers, deploying $10.1 billion in Corporate investments across multiple regions and $4.7 billion in real assets sectors. Their Direct Lending platform executed over $2.5 billion across 60 transactions, while the Real Assets platform originated $3.1 billion in energy and power, $1.2 billion in infrastructure, and $381 million in credit tenant lease transactions.

Positive

• Record originations of $14.9B in 2024, surpassing previous year
• Diversified portfolio across 238 companies and multiple sectors
• Strong repeat business with 122 existing borrowers returning for funding
• Expanded global presence with investments across North America, Europe, UK, Latin America, and Australia

Negative

• Acknowledgment of ambiguous economic conditions ahead
• Exposure to uncertain geopolitical risks

Insights

Financial Analyst

PGIM Private Capital's $14.9 billion deployment in 2024 represents meaningful activity for Prudential Financial's alternative investment arm. This capital allocation exceeds the previous year's pace and demonstrates PRU's significant positioning in the private debt market serving middle-market companies.

The composition of these investments reveals a strategic focus on quality and diversification: 70% ($10.5 billion) allocated to investment-grade opportunities, 26% ($3.9 billion) to below-investment-grade investments, and the remaining 4% ($574 million) to higher-risk/higher-return mezzanine and private equity investments.

Two aspects are particularly noteworthy: First, the 122 existing borrowers who returned for further funding indicate strong client relationships and potentially lower acquisition costs for these deployments. Second, the $4.7 billion allocation to real assets (energy, power, infrastructure) shows PRU's strategic commitment to sectors with typically stable, long-term cash flows.

The $2.5 billion in direct lending across 60 transactions indicates an average deal size of approximately $41.7 million, positioning PGIM in the upper-middle market segment where competition from banks has decreased since the regional banking crisis.

Management's commentary about "ambiguous economic and uncertain geopolitical backdrop" suggests they recognize potential headwinds but remain confident in their origination capabilities for 2025. Their continued deployment amid uncertainty could reflect a competitive advantage in deal sourcing and risk assessment.

Private Credit Specialist

PGIM Private Capital's $14.9 billion deployment demonstrates Prudential's substantial market presence in private credit, a segment that continues to gain importance as traditional lending sources remain constrained for middle-market companies.

The allocation between investment-grade ($10.5 billion) and below-investment-grade ($3.9 billion) reveals a relatively conservative approach that aligns with Prudential's institutional investor profile. This balanced strategy allows participation in higher-yielding opportunities while maintaining overall portfolio quality.

The geographic diversification across North America, Europe, Latin America, and Australia creates natural hedging against regional economic cycles. Meanwhile, the sector distribution between corporate investments ($10.1 billion) and real assets ($4.7 billion) provides exposure to both operational businesses and hard-asset backed investments.

The standout transaction financing Hudson Valley Parking Trust's acquisition of ICON Parking—New York City's largest parking operator—represents a classic private credit opportunity: an essential business with predictable cash flows and hard assets as collateral. Similarly, the Rubis Energie transaction showcases PGIM's cross-border capabilities in the energy distribution sector.

The direct lending platform's $2.5 billion deployment across both sponsored and non-sponsored transactions indicates versatility in deal sourcing beyond traditional private equity channels. This ability to operate across relationship types expands their potential opportunity set in a competitive market where differentiated sourcing provides advantage.

CHICAGO--(BUSINESS WIRE)-- PGIM Private Capital provided $14.9 billion of senior debt and junior capital to more than 238 middle-market companies and projects globally in 2024. PGIM Private Capital is a leading source of private debt for public and private companies and is the private capital arm of PGIM, the $1.38 trillion global management business of Prudential Financial, Inc. (NYSE: PRU).

“We expect 2025 to be another busy year for originations with borrowers continuing to value our collaborative approach as we strive for certainty of execution against an ambiguous economic and uncertain geopolitical backdrop.” -- Matt Douglass, Senior Managing Director and Head of PGIM Private Capital (Photo: Business Wire)

Matt Douglass, senior managing director and head of PGIM Private Capital, commented: “The pace of originations was strong throughout 2024, surpassing the previous year, and represents the continued demand from a wide range of middle-market companies and projects for private credit solutions.

“We expect 2025 to be another busy year for originations with borrowers continuing to value our collaborative approach as we strive for certainty of execution against an ambiguous economic and uncertain geopolitical backdrop.”

Highlights:

• $10.5 billion of investment-grade investments, $3.9 billion of below-investment-grade investments, and $574 million of mezzanine and private equity investments.
• 116 new issuers across a range of industries added to the portfolio, and 122 existing borrower companies returned for further funding.
• $10.1 billion in Corporate investments across North America, the U.K., Europe, Latin America, and Australia.
• $4.7 billion in real assets sectors, including energy, power, infrastructure, and credit tenant lease financing.
• Over $2.5 billion in direct lending transactions, across 60 transactions.

PGIM Private Capital’s Direct Lending platform continues to expand, maintaining strong origination activity globally. With a presence across the U.S., Europe, and Australia, the platform has reliably deployed capital, cultivating a variety of sponsored and non-sponsored relationships. Additionally, in 2024, the Real Assets platform originated $3.1 billion in energy and power transactions, $1.2 billion in infrastructure investments, and $381 million in credit tenant lease transactions.

Key Transactions:

• The financing of Hudson Valley Parking Trust’s acquisition of ICON Parking, the largest parking operator in New York City.
• The first U.S. Private Placement transaction with Rubis Energie, a global leader in energy and bitumen distribution operating across 40 countries in Europe, Africa, and the Caribbean.

PGIM Private Capital is one of the largest global private capital providers, investing in private debt and equity for 100 years. Through a patient relationship-based approach and cross-border financing experience with local market knowledge, the global team has committed capital through market cycles to help investors improve portfolio outcomes.

ABOUT PGIM PRIVATE CAPITAL

PGIM Private Capital manages a $106.6 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, New Jersey; 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 Dec. 31, 2024. For more information please visit pgimprivatecapital.com.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 41 offices across 19 countries, our more than 1,450 investment professionals serve both retail and institutional clients around the world.

As a leading global asset manager, with $1.38 trillion in assets under management,³ PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialized knowledge across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information 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.

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¹ The Mexico City office operates through PGIM Real Estate Mexico S.C.
² The Sydney office operates through PGIM (Australia) Pty Ltd.
³ As of Dec. 31, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250303449071/en/

Guy Nicholls

+1 973 204 1648

guy.nicholls@pgim.com

Source: Prudential Financial, Inc.

FAQ

How much capital did PGIM Private Capital deploy in 2024?

PGIM Private Capital deployed $14.9 billion in senior debt and junior capital to over 238 middle-market companies globally in 2024.

What was the breakdown of PGIM's investments across different risk categories in 2024?

$10.5B in investment-grade, $3.9B in below-investment-grade, and $574M in mezzanine and private equity investments.

How many new and existing borrowers did PGIM Private Capital finance in 2024?

PGIM added 116 new issuers and provided additional funding to 122 existing borrower companies.

What was PGIM's investment in real assets sectors during 2024?

$4.7B total: $3.1B in energy and power, $1.2B in infrastructure, and $381M in credit tenant lease transactions.

How much did PGIM Private Capital invest in direct lending transactions in 2024?

Over $2.5 billion across 60 direct lending transactions globally.