Prudential Capital Energy Partners has completed fundraising for its first energy mezzanine fund, Prudential Capital Energy Partners Fund I, closing at USD343 million.
Prudential Capital Energy Partners (PCEP) is the middle-market energy mezzanine fund business sponsored by Prudential Capital Group, the USD81.4 billion private capital arm of PGIM, the USD1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
Fund I will follow an investment strategy consistent with its predecessor legacy investment programs, making investments ranging from USD10 to USD50 million to fund primarily mezzanine debt investments in the middle-market North American upstream oil and gas, conventional and renewable power sectors.
“We are pleased to close our initial fund and commence the deployment of capital into the vibrant oil and gas and power sectors of the energy industry,” says Randall Kob, managing principal of Prudential Capital Energy Partners. “Our team’s deep experience, continuity and strong performance across multiple economic and commodity cycles establish a solid foundation to generate attractive returns.”
As of 30 June 2018, PCEP has invested in four portfolio companies, including Carbon California and Prairie Provident Resources, for funding initiatives such as the expansion of new and existing energy facilities as well as supporting ongoing financing needs during rapid growth.
“The upstream and power sectors are dynamic and highly capital-intensive sectors within energy that will continue to create ample investment opportunities for the Fund,” adds Kob. “Our broad sourcing network across 10 investment teams will provide our investors with differentiated deal flow that is largely sourced on a direct, face-to-face basis.”
In addition to Kob, other principals of Prudential Capital Energy Partners, include Ric Abel, Matt Baker, Wendy Carlson, Brian Thomas and Allen Weaver. This team has a combined average of 27 years of private investment experience, including 21 years on average with Prudential Capital Group.
Similar to Prudential Capital Group’s other affiliated corporate mezzanine funds, known as Prudential Capital Partners, the investment professionals of Prudential Capital Group will co-invest alongside the fund using a separate USD38 million vehicle.