Prudential debt group originates billions in 2016

Strong demand for mid-market loans led to a total of $12.6bn in deals over the year. 

Prudential Capital Group provided an aggregate of $12.6 billion in debt financing across the globe last year, marking the largest volume in the private debt group’s history, the company said on Thursday.

The private debt investment arm of PGIM provided senior and junior debt originations to 93 new clients last year, expanding upon its portfolio of close to 1,000 existing clients, according to a statement.  

From the total, the firm provided $10.7 billion to investment grade companies or projects and $1.5 billion to below investment grade.

Allen Weaver, senior managing director and head of the lending group, said in the statement that the firm’s recent growth has been a direct response to the increased demand for mid-market finance, particularly outside North America.

A plurality of the 2016 originations, $4.7 billion, were in North America. The firm provided $3.6 billion in the UK, Europe, Australia and Latin America, a 39 percent increase year-on-year for these regions, according to the statement.

Pricoa Capital Group, the group’s international investment arm, added an investment team in Sydney last year, as Private Debt Investor reported. The group has added several new staff and offices in Europe and Latin America over the last five years, Weaver added.

He also noted that the group has expanded its infrastructure and energy investments last year, providing $2.7 billion in energy sector investments, including power and oil and gas, and $1.6 billion in global infrastructure and related sectors.

Prudential Capital Group’s mezzanine fund business, Prudential Capital Partners,  also closed its fifth mezzanine fund in 2016, at its hard-cap of $1.83 billion, above its original $1.4 billion target, as PDI reported.

The Prudential Capital Partners Fund V raised capital from 34 investors, including corporate pension funds, insurance companies, fund of funds managers, foundations and families, beginning its fundraise in April 2016.

Last year, the mezzanine platform invested $273 million from Funds II, III and IV and had $240 million of realizations, according to the statement.

PGIM is the $1 trillion global investment management business of Prudential Financial.