Prudential provides $5.3bn in financing in first half of 2015

The capital deployed is about $1 billion more than in the same period last year and spread across a variety of industries and geographies.  

Prudential Capital Group issued $5.3 billion in financing to companies and projects in the first half of 2015, about $1 billion more than that issued for the same period last year, the lender said.

In an announcement last week, the private debt investment arm of insurer Prudential Financial also said it had added 40 new clients across a range of industries.

Of the new transactions, $4.3 billion were investment grade deals, $875 million were below-investment-grade and $185 million went to mezzanine and equity investments.

About $2.1 billion deals were made in North American companies and projects, while $1.1 billion was invested in the UK, Europe and Australia. Another $1.1 billion went toward energy sector investments, while another $1 billion was invested in other niche sectors, such as global infrastructure, leases and specialty financing.

“With global markets in a state of flux, it is important for companies to have strong relationships with their sources of capital. Prudential Capital Group’s consistent presence in the market and focus on developing strong long-term relationships have served our clients very well through many cycles,” Allen Weaver, head of Prudential Capital, said.

Prudential’s lending business aims to invest half or more of its book in unsponsored deals and source them directly at the company/project level through its local originators.

Weaver said that this was where the firm could find an edge and diverge from its competitors, many of whom focus on senior-secured sponsor-backed deals, normally backing buyout transactions.

He told PDI that, compared with 2014, North American deal-making had been stronger than European transaction volume this year. He said political headwinds in Europe had led to loan issuance easing slightly.

Prudential Capital is headquartered in Chicago. Its additional US offices are in Atlanta, Dallas, Los Angeles, Minneapolis, Newark, NJ, New York and San Francisco. The firm also has a European presence in London, Frankfurt and Paris, and recently opened a Milan office.

The group oversees $74 billion in capital, as of 31 March. Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases and equipment finance to companies. The unit invests its insurance parent’s money and raises third-party funds. Prudential Financial has $1 trillion in assets under management.