Prudential Capital Partners has closed its third mezzanine fund with $965 million in capital commitments.
Prudential Capital Partners announced today that it has successfully completed fundraising for Prudential Capital Partners III, L.P. with capital commitments totaling $965 million, exceeding its initial fundraising target of $900 million. Prudential Capital Partners is the middle-market mezzanine fund business sponsored by Prudential Capital Group, a private fixed-income investment business of Prudential Financial, Inc. (NYSE: PRU).
Investors include state and corporate pension funds, fund-of-funds managers, insurance companies and family offices. More than 80 percent of Fund III’s investor group participated in Prudential Capital Partners II, L.P., which totaled $775 million when it closed in 2005. Prudential Capital Partners’ first fund closed in 2001, totaling $619 million.
“Although this has been the toughest economic environment for fundraising that we have ever experienced, we believe what set us apart was our focus on a consistent middle-market investment strategy in sponsored and sponsorless financings,” said Jeffrey Dickson, managing principal, Prudential Capital Partners.
As of 12/31/09, Prudential Capital Partners has funded 107 mezzanine and equity investments and has realized 56 of those investments. Prudential Capital Partners and Prudential Capital Group are actively seeking North American financing opportunities for Fund III, which is expected to make investments over the next three years. Fund III will follow an investment strategy consistent with that of the first two funds: making investments ranging from $10 to $100 million to fund acquisitions, management led and sponsored leveraged buyouts, recapitalizations, and growth capital for middle-market companies in traditional industries.
Dickson added, “In a strategy consistent with Prudential Capital Group’s decades-long investment philosophy, we’ll focus on uncovering middle-market companies with defensible market positions, strong management teams and stable cash flow, as well as continue to offer one-stop financing solutions to the equity sponsor community. With nearly 100 investment professionals building direct relationships with issuers and sponsors in local markets, our national network ensures access to deal flow supporting our strategic investment approach. It’s what differentiates us from other mezzanine funds and the response by investors has validated that strategy.”
In addition to Dickson, other principals of Prudential Capital Partners, III, L.P., include Mark Hoffmeister, Charles King, Allen Weaver and Matthew Chanin. The team has on average 25 years of private investment experience with specific expertise in mezzanine investments, having been responsible for the design and implementation of Prudential Capital Group’s mezzanine strategy since 1995.
Prudential Capital Group, the fund sponsor, has been a leading provider of private capital to companies for more than 70 years, investing in senior and subordinated debt and equity transactions and manages a portfolio of more than $45 billion (as of 09/30/09). Prudential Capital and its affiliates have built a strong and unique nationwide, middle-market investment capability and in 2009, invested more than $6.3 billion in private placements through its international regional office network: Atlanta, Chicago, Dallas, Frankfurt, Los Angeles, London, Newark, New York, Paris and San Francisco.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $641 billion of assets under management as of September 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the United States, the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential’s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.news.prudential.com.