Prudential Capital Partners has raised $1.15 billion for its fourth mezzanine fund, Prudential Capital Partners IV, L.P., exceeding its $1 billion fund raising target and bringing to more than $3.5 billion the amount raised since 2000, the company announced today. Prudential Capital Partners is the middle-market mezzanine fund business sponsored by Prudential Capital Group, a private fixed-income investment business of Prudential Financial, Inc. (NYSE:PRU).
Investors include public and corporate pension funds, insurance companies, fund-of-funds managers, foundations, and family offices. In addition to eleven new investors committing to the new fund, more than 70 percent of existing investors re-committed in Fund IV.
"As investors are increasingly searching for current yield in a low interest rate environment, the number of credit related funds in the market is on the rise," said Jeffrey Dickson, managing principal of Prudential Capital Partners. "In this crowded marketplace, our consistency of strategy, team and performance over time has really helped to set us apart in fund raising and has enabled us to raise four funds of increasing size over the last twelve years. We look forward to continuing our role as a leading capital provider to the middle-market."
Prudential Capital Partners has funded 93 mezzanine and equity investments since 2000 and has realized or partially realized 52 of those investments. Prudential Capital Partners and Prudential Capital Group are actively seeking North American financing opportunities for Fund IV, which is expected to make investments over the next three to five years.
Fund IV will follow an investment strategy consistent with that of the first three funds: making investments ranging from $10 to $100 million to fund acquisitions, recapitalizations, growth capital financings, and management led and sponsored leveraged buyouts for middle-market companies in traditional industries.
In addition to Dickson, other principals of Prudential Capital Partners, IV, L.P., include Mark Hoffmeister, Paul Meiring, Charles King, Allen Weaver, Robert Derrick and Scott Von Fischer. The team has on average 28 years of private investment experience with specific expertise in mezzanine investments, having been responsible for the design and implementation of Prudential Capital Group’s mezzanine strategy since 1995.