CHICAGO, Feb. 20, 2024 – PGIM Private Capital provided nearly $13.7 billion of senior debt and junior capital to more than 250 middle-market companies and projects globally in 2023. PGIM Private Capital is a source of private debt for public and private companies and is the private capital arm of PGIM, the $1.3 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Matt Douglass, senior managing director and head of PGIM Private Capital, commented: “Last year we saw sustained interest from companies in our private capital solutions. With economic and interest rate uncertainty weighing on sentiment, we saw a distinct trend towards borrowers really valuing certainty of execution. Our reputation among borrowers as a reliable and trusted capital partner meant that we benefited from this trend.”
“I would expect our origination pace to be strong in 2024. Even though continued economic and geopolitical uncertainty may pressure M&A activity and cause some issuers to defer financing decisions, companies and sponsors will value certainty of execution and trusted partners who can deliver in these market conditions. I am optimistic that our stability and continued expansion of our origination network and investment capabilities will drive solid levels of activity in these conditions.”
2023 Highlights:
PGIM Private Capital’s Direct Lending reached a record year of originations at over $2.0 billion, despite a decline in M&A volumes across the market. The platform continues to deploy capital across the U.S., European, and Australian markets and cultivate new sponsored and non-sponsored relationships, including closing the first direct lending transaction in the Netherlands.
PGIM Private Capital’s Real Assets platform originated nearly $2.6 billion in energy and power transactions, nearly $1.2 billion across infrastructure investments, and $875 million in credit tenant lease transactions. The team maintains strong origination activity both domestically and internationally, including closing a direct, below-investment-grade origination for Sentinel Midstream, a midstream solutions provider in Texas and Louisiana.
ABOUT PGIM Private Capital
PGIM Private Capital manages a $101.5 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 $16.0 billion annually in predominantly senior debt and junior capital. PGIM Private Capital manages more than $20.0 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, 2023. For more information, please visit pgimprivatecapital.com.
ABOUT PGIM
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), is a leading asset manager in the world³ with $1.3 trillion in assets under management as of Dec. 31, 2023. With offices in 18 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 PGIM is the investment management business of Prudential Financial, Inc. (PFI). PFI is the 11th-largest investment manager (out of 434 firms surveyed) in terms of worldwide institutional assets under management based on Pensions & Investments’ Top Money Managers list published June 2023. This ranking represents institutional client assets under management by PFI as of Dec. 31, 2022. Participation in the P&I ranking is voluntary and open to managers that have any kind of U.S. institutional tax-exempt AUM. Managers self-report their data via a survey. P&I sends the survey to previously identified managers and to any new managers asking to participate in the survey/ranking. No compensation is required to participate in the ranking.
In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorized and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorized and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions, or licenses available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).
Under McRoberts’ previous tenure leading the platform, he increased production from $2.4 billion in 2011 to its peak of $9.6 billion in 2020.
The progressive shift from a bank funding to a non-bank funding model is the big theme playing out in Europe.
A diversified portfolio of sponsored and non-sponsored loans can provide investors with a broader range of deals and potentially better performance over time.
