This week, PGIM Private Capital, the private debt business of PGIM, Prudential Financial’s asset management arm, released record capital raise figures for 2020. The company provided $12.5 billion of senior debt and junior capital to nearly 200 middle-market companies and projects globally in 2020, despite widespread economic uncertainty and dislocation due to covid 19.
PGIM Private Capital is a leading source of private debt for public and private companies. Its parent division, PGIM, is one of the ten largest asset managers in the world, with $1.5 trillion in assets under management.
Records, records, records
PGIM Private Capital’s own portfolio grew to a record $100 billion in assets under management as of December 31. During the year, the company completed $10.9 billion of investment-grade investments, the second largest recorded annual volume for the firm, as well as $1.2 billion of below-investment-grade investments, and $338 million of mezzanine and private equity investments.
In 2020, the company added 80 new issuers across a range of industries to its portfolio, while 107 existing borrower companies returned for additional funding. It made $8.1 billion in Global Corporate Finance investments across North America, the U.K., Europe, Latin America and Australasia, and $727 million in Direct Lending transactions, across 15 transactions.
In real assets alone, PGIM Private Capital invested $3.7 billion across multiple sectors, including $1.3 billion in energy projects, plus power, infrastructure and credit tenant lease financing.
The company invested as lead anchor in a $300 million club deal for Texas Eastern Transmission, an 8,835-mile regulated interstate natural gas pipeline running from the Texas gulf coast to New York. The pipeline will serve local distribution companies, power generators, upstream producers, and natural gas marketers.
Club deals–investments involving multiple private equity companies–set a company-wide record in 2020, with eight transactions totaling over $2 billion in combined commitments. And the company’s sixth private debt fund, PGIM Capital Partners VI LP, exceeded its fundraising target with $2.23 in capital commitments.
“Our steady global investment pace through the COVID-19 pandemic demonstrates the depth of our global network and our commitment to supporting existing and new relationships,” said Allen Weaver, Senior Managing Director and Head of PGIM Private Capital. “During volatile market conditions, partnerships are pressure tested, and we responded to the uncertainty with resilience for both our borrowers and investors.”
PGIM Private Capital reported particularly strong activity in Europe, including a $150 million shelf facility with Spanish family-owned storage systems company Mecalux, which enabled the business to draw capital on an as-needed basis.
“Our strong performance in 2020, despite the continued global pandemic, reaffirms our commitment to the middle-market and consistent investment approach through all economic cycles. We hope to maintain this momentum into 2021 while balancing risk and opportunities for our investors,” Weaver added.
Also this week, PGIM Investments, the fund family division of PGIM, announced that it ended 2020 with $21.7 billion in net mutual fund flows, marking a 12th straight year of positive net fund inflows, ranking it second in the industry. The company also reported record mutual fund assets under management of $160.4 billion, up 31% from 2019. PGIM Investments is the world’s fourth fastest growing fund family by organic growth.
