Prudential Capital Group today announced that Her Majesty’s Treasury, the United Kingdom’s economics and finance ministry, allocated £200 million (about US$323 million) of a total £700 million (about US$1.1 billion) to the firm as part of a partnership to make more capital available to mid-sized U.K. businesses. Prudential Capital Group is an investment manager focused on providing capital for middle-market, public and private companies, and an investment business of Prudential Financial, Inc. (NYSE:PRU)
The £200 million was allocated to the Pricoa Sterling Fund, which, consistent with the objectives of the public/private partnership, will invest in debt securities of U.K. companies with less than £500 million in annual revenue. The funds will be invested alongside the advisor’s parent and other institutional investors.
Prudential Capital Group is one of the largest middle-market private placement investors in the world with more than 70 years of experience. Globally, the firm has lending relationships with more than 1,000 companies and manages a portfolio of more than $65 billion, including $10 billion managed for non-affiliated investors, as of September 30, 2012.
HM Treasury launched the initiative, called the Business Finance Partnership, earlier this year to increase the supply of capital through non-bank lending channels and to help diversify capital sources. The U.K. Chancellor’s Autumn Statement, dated Dec. 5, 2012 announced the investment of £700 million toward the creation of five new funds that will lend to mid-sized companies.
“The Business Finance Partnership was a perfect fit for Prudential in that we have been actively executing a non-bank, institutional lending model in the U.K. for more than 20 years,” said Albert Trank, a managing director with Prudential Capital Group responsible for the firm’s advisory funds and investor relationships. “The initiative also raises the visibility of opportunities in non-bank lending/investing for institutional investors beyond the traditional U.S. base. We anticipate active participation among U.K. institutional investors.”