Prudential Closes New Mezz Fund
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Prudential Closes New Mezz Fund

Prudential Capital Partners has closed its fifth mezzanine fund, Prudential Capital Partners V, LP, with $1.8 billion of capital commitments, well in excess of the $1.4 billion target. Fundraising began in April 2016.

Prudential Capital Partners (PCP) is the middle-market mezzanine fund business of Prudential Capital Group (PCG) which in turn is part of publicly-traded Prudential Financial (NYSE:PRU). The investment professionals of PCG will co-invest alongside Fund V in each of its investments using a separate $98 million investment fund.

More than 70 percent of existing PCP investors re-committed to Fund V – many at higher amounts – that brought the capital raise from existing investors to 96 percent of prior fund commitments. Investors in the fund include 34 limited partner groups including corporate pension funds, insurance companies, fund-of-funds managers, foundations, and family offices.

“We are very pleased that our middle-market credit strategy resonated with investors globally, who were seeking yield in a low interest rate environment,” said Jeffrey Dickson, Managing Principal of PCP. “Our team’s continuity and consistent track record across cycles generated substantial demand, which became apparent when we were oversubscribed within five months, reaching our hard cap of $1.8 billion.”

Traditionally, PCP has invested from $10 to $100 million to fund acquisitions, recapitalizations, growth capital financings, and management led and sponsored leveraged buyouts for North American-based middle-market companies. However, Fund V has expanded its criteria to include investments in middle market companies within the UK and Western Europe. “Fund V will have an expanded reach with investments in UK and Western Europe based companies,” added Mr. Dickson. “Our global sourcing network of 12 regional offices spans both North America and Europe and allows us to provide clients with a face-to-face relationship approach to investing.” PCP’s regional offices are located in Atlanta, Chicago, Dallas, Frankfurt, London, Los Angeles, Milan, Minneapolis, Newark, New York, Paris, and San Francisco.

For 2016, PCP completed nearly $260 million of investments across 11 manufacturing, services and distribution companies. It also had realizations for Funds II, III and IV, totaling $265 million.

PCP was founded in 2000 and has raised $5.3 billion in five funds and invested $3.2 billion in 125 companies. In addition to Mr. Dickson, other Principals of PCP include Robert Derrick, Mark Hoffmeister, Paul Meiring, Scott Von Fischer, Allen Weaver, Marie Fioramonti and Mathew Douglass. This team has a combined average of 28 years of private investment experience.

PCP is headquartered in Chicago (click HERE for the PCP website).

© 2017 Private Equity Professional | January 12, 2017

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