Prudential Capital Group, a mezzanine fund sponsor and investment management business of the Prudential Insurance Company of America have closed a $619m mezzanine fund focused on middle-market companies.
According to Prudential Capital’s senior managing director Allen Weaver, the appeal of mezzanine funds helped the group exceed its fund-raising goal by a flattering margin.
The fund, Prudential Capital Partners, surpassed its initial $500m target fund size by more than $100m (more than 20%) with commitments from 21 investors. Investors range from pension funds to foreign and domestic money managers, investment banks, individual investors, and Prudential's general account.
In addition, the senior investment professionals of Prudential Capital Group have funded a $20m co-investment vehicle, which will be invested alongside the fund. The mezzanine and co-investment funds are expected to be fully invested within three to four years.
Prudential Capital Partners has funded four mezzanine investments totalling $70m. The mezzanine fund will make investments ranging from $5m to $40m to fund acquisitions, buyouts and recapitalisations for middle-market companies in traditional industries.
By Janet Du Chenne
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.