Prudential Capital Energy has raised $343 million for its first energy mezzanine fund. Prudential Capital Energy Partners Fund I will focus on middle-market North American upstream oil and gas, conventional and renewable power sectors.
Prudential Capital Energy Partners has completed fundraising for its first energy mezzanine fund, Prudential Capital Energy Partners Fund I, L.P., closing at $343 million. Prudential Capital Energy Partners (PCEP) is the middle-market energy mezzanine fund business sponsored by Prudential Capital Group, the $81.4 billion private capital arm of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
Fund I will follow an investment strategy consistent with its predecessor legacy investment programs, making investments ranging from $10 to $50 million to fund primarily mezzanine debt investments in the middle-market North American upstream oil and gas, conventional and renewable power sectors.
“We are pleased to close our initial fund and commence the deployment of capital into the vibrant oil and gas and power sectors of the energy industry,” said Randall Kob, managing principal of Prudential Capital Energy Partners. “Our team’s deep experience, continuity and strong performance across multiple economic and commodity cycles establish a solid foundation to generate attractive returns.”
As of June 30, 2018, PCEP has invested in four portfolio companies, including Carbon California and Prairie Provident Resources, for funding initiatives such as the expansion of new and existing energy facilities as well as supporting ongoing financing needs during rapid growth.
“The upstream and power sectors are dynamic and highly capital-intensive sectors within energy that will continue to create ample investment opportunities for the Fund,” added Kob. “Our broad sourcing network across 10 investment teams will provide our investors with differentiated deal flow that is largely sourced on a direct, face-to-face basis.”
In addition to Kob, other principals of Prudential Capital Energy Partners, L.P., include Ric Abel, Matt Baker, Wendy Carlson, Brian Thomas and Allen Weaver. This team has a combined average of 27 years of private investment experience, including 21 years on average with Prudential Capital Group.
Similar to Prudential Capital Group’s other affiliated corporate mezzanine funds, known as Prudential Capital Partners, the investment professionals of Prudential Capital Group will co-invest alongside the fund using a separate $38 million vehicle.
About Prudential Capital Group
Prudential Capital Group has been a leading provider of private placements, mezzanine debt and equity to companies for more than 75 years, managing a portfolio of more than $81 billion as of June 30, 2018. Prudential Capital offers senior debt, mezzanine financing, leveraged leases, project financing, credit tenant leases as well as asset financing to companies worldwide. The global regional office network has locations in Atlanta; Chicago; Dallas; Frankfurt, Germany; London; Los Angeles; Milan; Minneapolis; New York; Newark, New Jersey; Paris; San Francisco and Sydney.* For more information, please visit prudentialcapitalgroup.com.
*Operates through PGIM (Australia) Pty Ltd.
About PGIM and Prudential Financial, Inc.
With 15 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc., ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of June 30, 2018. 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’s additional businesses 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.