Prudential Capital Partners completed fundraising for its fifth mezzanine fund, Prudential Capital Partners V, surpassing its target of $1.4 billion.
Fund V attracted a diverse set of institutional investors and closed fund raising with 34 investor relationships in reaching its hard cap. More than 70% of existing investors recommitted to Fund V, many at higher amounts that brought the capital raise from existing investors to 96% of prior fund commitments.
Prudential Capital Partners Fund V will follow an investment strategy consistent with its four predecessor funds: making investments ranging from $10 million to $100 million to fund acquisitions, recapitalizations, growth capital financings, and management led and sponsored leveraged buyouts for middle-market companies in traditional industries in North America. Fund V has also expanded capacity to make investments in middle market companies within the UK and Western Europe.
“We are very pleased that our middle-market enhanced credit strategy resonated with investors globally, who were seeking yield in a low interest rate environment,” said Jeffrey Dickson, managing principal of Prudential Capital Partners. “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 $1.825 billion.”
Prudential Capital Partners began offering Fund V, which closed in December, in April 2016 with an initial target of $1.4 billion. With its fifth fund, Prudential Capital Partners has raised more than $5.3 billion from institutional investors since launching its first mezzanine fund in 2001.
Prudential Capital Partners is the middle-market mezzanine fund business sponsored by Prudential Capital Group, the $78 billion private placement arm of PGIM, Prudential Financial.