PGIM Private Capital provides nearly $13.7 billion of senior debt and junior capital globally in 2023

PGIM Private Capital provided nearly $13.7 billion of senior debt and junior capital to more than 250 middle-market companies and projects globally in 2023. PGIM Private Capital is a source of private debt for public and private companies and is the private capital arm of PGIM, the $1.3 trillion global investment management business of Prudential Financial, Inc.

Matt Douglass, senior managing director and head of PGIM Private Capital, commented: “Last year we saw sustained interest from companies in our private capital solutions. With economic and interest rate uncertainty weighing on sentiment, we saw a distinct trend towards borrowers really valuing certainty of execution. Our reputation among borrowers as a reliable and trusted capital partner meant that we benefited from this trend.”

“I would expect our origination pace to be strong in 2024. Even though continued economic and geopolitical uncertainty may pressure M&A activity and cause some issuers to defer financing decisions, companies and sponsors will value certainty of execution and trusted partners who can deliver in these market conditions. I am optimistic that our stability and continued expansion of our origination network and investment capabilities will drive solid levels of activity in these conditions.”

2023 Highlights:

• $10.0 billion of investment-grade investments, $3.1 billion of below-investment-grade investments, $503 million of mezzanine and private equity investments.
• 106 new issuers across a range of industries added to the portfolio and 159 existing borrower companies returned for further funding.
• $7.4 billion in Global Corporate Finance investments across North America, the U.K., Europe, Latin America and Australasia.
• $4.7 billion in real assets sectors, including energy, power, infrastructure, credit tenant lease financing, and structured credit.
• $503 million of mezzanine investments including 3 new energy platforms through PGIM Energy Partners, PGIM Private Capital’s middle-market energy fund.
• Over $2.0 billion in Direct Lending transactions, across nearly 50 transactions, marking a record year of Direct Lending activity.
• Acquired a majority interest in Deerpath Capital Management, a U.S. private credit and direct lending manager focused on primarily financing private equity sponsor-backed companies in the lower middle market.
• Launch of PGIM Private Capital’s middle-market CLO platform, Windhill, with our first issuance completed in December 2023 for $396 million.

PGIM Private Capital’s Direct Lending reached a record year of originations at over $2.0 billion, despite a decline in M&A volumes across the market. The platform continues to deploy capital across the U.S., European, and Australian markets and cultivate new sponsored and non-sponsored relationships, including closing the first direct lending transaction in the Netherlands.

PGIM Private Capital’s Real Assets platform originated nearly $2.6 billion in energy and power transactions, nearly $1.2 billion across infrastructure investments, and $875 million in credit tenant lease transactions. The team maintains strong origination activity both domestically and internationally, including closing a direct, below-investment-grade origination for Sentinel Midstream, a midstream solutions provider in Texas and Louisiana.