CHICAGO, March 9, 2017 – Prudential Capital Group, a leading source of private capital for public and private companies, provided $12.6 billion to companies and projects worldwide in 2016, the largest volume of financing made in the company’s 75-year history, the company announced today. Prudential Capital Group is the private placement arm of PGIM, the $1 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
“This was an exceptionally strong year for Prudential Capital Group,” said Allen Weaver, senior managing director and head of Prudential Capital Group. “Over the last five years, we have been executing a distinct growth plan in response to the increased demand for middle-market lending. We added staff and offices in Europe, Latin America and Australia, and in the infrastructure and energy markets to meet investor and borrower demand, expanded our management team and enhanced our ability to rapidly respond to the capital needs of middle-market companies, worldwide.”
2016 highlights include:
- Largest ever annual senior and junior capital originations of $12.6 billion consisting of: $10.7 billion of investment grade; $1.5 billion of below- investment grade, both fixed rate and floating rate; and $474 million of junior capital.
- $7.3 billion in direct originations
- $4.7 billion in North American investments
- $925 million in Latin American-based investments
- $3.6 billion invested primarily in the U.K., Europe, Australia and Latin America, a year-over-year increase of 39%
- $2.7 billion in energy sector investments, including power and oil and gas
- $1.6 billion in other key sectors such as global infrastructure and specialty financing
- Prudential Capital expanded its portfolio by adding 93 new clients, building on nearly 1,000 existing clients.
Also, in 2016, Prudential Capital Partners, the middle-market mezzanine fund business sponsored by Prudential Capital Group, closed its fifth mezzanine fund (Fund V). The fund hit its hard cap of $1.825 billion with investors from the U.S., Europe and Asia. Prudential Capital Partners also invested $273 million and had $240 million of realizations from Funds II, III and IV.
Prudential Capital Group has experienced extraordinary growth in its cross-border originations. Pricoa Capital Group originated $3.6 billion from the U.K., European, Australian and Latin American regions. With established offices in London, Paris, Frankfurt and Milan, Pricoa Capital Group responded to increasing demand in Australia and New Zealand and put an investment team on the ground in Sydney in 2016.
Prudential Capital Group is the private debt investment arm of Prudential Financial, Inc. (NYSE: PRU). The company has been a leading provider of senior debt and junior capital securities to companies worldwide for more than 75 years. Managing a portfolio of $76.8 billion (as of Dec. 31, 2016), Prudential Capital Group provides senior debt and junior capital, leverage leases, credit tenant leases and equipment finance. The global regional office network has locations in Atlanta, Chicago, Dallas, Frankfurt, Germany; London, Los Angeles, Milan, Minneapolis, Newark, N.J.;New York, Paris, San Francisco and Sydney.* More information is available at prudentialcapitalgroup.com.
*The Sydney office operates through PGIM (Australia) Pty Ltd.
About PGIM and Prudential Financial, Inc.
With 13 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of Dec. 31, 2016. 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 fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents.
Prudential Financial’s other businesses also offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about PGIM, please visit pgim.com. For more information about Prudential, please visit news.prudential.com.