PGIM Private Capital raises $2.23B for sixth mezzanine fund, PGIM Capital Partners VI, L.P.

Rhea-AI Summary

PGIM Private Capital has successfully closed its PGIM Capital Partners VI fund with capital commitments totaling $2.23 billion, exceeding its fundraising target. This fund is over 20% larger than its predecessor, Fund V. Launched in Q1 2020, Fund VI attracted 24 investors from five countries, even during the COVID-19 pandemic. The fund will focus on middle-market financing opportunities primarily in the U.S., Canada, the U.K., and Western Europe, reinforcing PGIM's role as a reliable partner in volatile markets.

Positive

• Raised $2.23 billion for PGIM Capital Partners VI, exceeding fundraising target.
• Fund VI is over 20% larger than Fund V, indicating strong investor confidence.
• Attracted 24 investors from five countries despite COVID-19 market volatility.
• Continues focus on middle-market financing, enhancing PGIM's market presence.

Negative

• None.

PGIM Private Capital has completed fundraising for PGIM Capital Partners VI, L.P., surpassing its fundraising target with capital commitments of $2.23 billion. PGIM Capital Partners VI is more than 20% larger than Fund V, which closed in 2016. PGIM Private Capital is a leading source of private debt for public and private companies and is the private capital arm of PGIM, the $1.4 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).

Jeffrey Dickson, Executive Managing Director and Head of Alternatives, PGIM Private Capital (Photo: Business Wire)

PGIM Capital Partners VI launched in Q1 2020 and received its final commitment in December 2020, amid unprecedented market volatility due to the COVID-19 global pandemic. The fund closed with 24 investors across five countries and three continents, including significant re-up support from existing limited partners.

“Throughout the global pandemic and resulting market volatility, we have continued to deploy flexible junior capital to the middle-market,” said Jeff Dickson, executive managing director and head of Alternatives, PGIM Private Capital. “Our long-term, patient approach to investing has served us, our borrowers and our investors well during this time of uncertainty. We appreciate the continued confidence of our investor base, and believe this successful fundraising effort is a testament to the strategy and value proposition of PGIM Private Capital in the middle-market.”

The Fund VI strategy, much like its previous five funds, will continue to pursue middle-market financing opportunities primarily within the United States, Canada, the U.K. and Western Europe.

“Our funds have been cycle-tested,” said Allen Weaver, senior managing director and head of PGIM Private Capital. “The volatility experienced in 2020 has solidified our role as a reliable and trusted partner to middle-market issuers and our investors.”

About PGIM Private Capital

PGIM Private Capital manages more than $20 billion in outside nonaffiliated assets through its Institutional Asset Management unit and Alternative Investments unit, comprised of PGIM Capital Partners and PGIM Energy Partners mezzanine funds, and Direct Lending. PGIM Private Capital manages a $97.5 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 private senior debt and junior capital. All data as of Sept. 30, 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 more than US$1.4 trillion in assets under management as of September 30, 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.

For media use only. All investments involve risk, including the possible loss of capital.

This press release is not intended to constitute marketing of any fund under the EEA's Alternative Investment Fund Managers Directive ('AIFMD') as implemented in the relevant EEA jurisdiction. 'Marketing' as defined under AIFMD shall only take place in the relevant jurisdiction where the alternative investment fund manager has registered as required under AIFMD for marketing or where an investor has approached the alternative investment fund manager on a reverse-enquiry basis. No fund mentioned in this press release is available for new investors.

In the United Kingdom and various other jurisdictions in Europe, this press release is issued by PGIM Private Capital Limited (‘PPC Ltd’), authorised and regulated by the Financial Conduct Authority (registration number 172071) of the United Kingdom and duly passported in various jurisdictions in the European Economic Area to provide discretionary investment advice.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005162/en/

FAQ

What is the capital raised by PGIM for Capital Partners VI?

PGIM Private Capital raised a total of $2.23 billion for its Capital Partners VI fund.

How does Fund VI compare to Fund V in terms of size?

Fund VI is over 20% larger than Fund V, which closed in 2016.

Where is PGIM Capital Partners VI focusing its investments?

The fund focuses on middle-market financing opportunities in the U.S., Canada, the U.K., and Western Europe.

How many investors are involved in PGIM Capital Partners VI?

There are 24 investors involved in PGIM Capital Partners VI.

When did fundraising for PGIM Capital Partners VI begin?

Fundraising for PGIM Capital Partners VI launched in Q1 2020.