PGIM Private Capital, the private capital arm of Prudential Financial $1.34tn global investment business PGIM, provided $7.5bn of senior debt and junior capital to more than 130 middle-market companies and projects globally in H1 2024.
“The first half of 2024 has been more stable for issuance than the same period last year. This year we’ve seen M&A activity pick up somewhat, a less uncertain economic environment and greater acceptance of higher rates which has fed through to a pickup in financing activity,” said Matt Douglass, Senior Managing Director and Head of PGIM Private Capital. “We expect momentum to continue with companies that have put off financing decisions gradually adjusting their expectations and cost structures in anticipation of a higher-for-longer rate environment, and continuing to look for long-term partners to provide credit solutions.”
During H1 PGI Private Capital made $5.5bm of investment-grade investments, $1.7bn of below-investment-grade investments, over $230m of mezzanine and private equity investments.
Some 56 new issuers across a range of industries were added to PGI Private Capital’s portfolio, and 79 existing borrower companies returned for further funding.
A total of $4.0bn in Global Corporate Finance investments were made across North America, the UK, Europe, Latin America and Australasia, as well as $2.5bn of investment in real assets sectors, including energy, power, infrastructure, credit tenant lease financing, and structured credit.
PGIM Private Credit made over $1.1bn in Direct Lending transactions, across more than 30 transactions in 9 countries.
Direct originations continue to be a core driver of PGIM Private Capital’s diverse pipeline, offering investors access to differentiated deal flow — from financing a US
-based family-owned agricultural commodity processor to supporting Mexico’s leading distributor of heavy machinery and equipment.
PGIM Private Capital’s Real Assets platform originated $1.9bn in energy and power transactions, over $450m in infrastructure investments, and $200m in credit tenant lease transactions. Notably, the team closed its first renewable power transaction in Sweden with Solør Bioenergi AB, a privately owned Northern European district heating platform, and its first energy investment in Spain with a holdco debt transaction in Exolum, an international liquid products logistics company.
PGIM Private Capital also launched its first European Long-Term Investment Fund (ELTIF) in H1 2024 to support its direct lending strategy. The ELTIF will support PGIM Private Capital’s loan origination efforts in Europe, providing flexibility to extend loans across the continent with a more varied mix of borrower type.
