CORPORATE MEZZANINE

PGIM Private Capital, the fund sponsor, has built a strong and proprietary middle-market investment capability through its Regional Office Network, with offices in Atlanta, Chicago, Dallas, Frankfurt, London, Los Angeles, Mexico City**, Milan, Minneapolis, Newark, New York, Paris, San Francisco and Sydney†. PGIM Private Capital manages a private capital portfolio of nearly $89 billion (as of 6/30/19) of investment grade and below investment grade private debt, mezzanine, and private equity. 

INVESTMENT STRATEGY 


Philosophy 

The fund pursues an investment strategy concentrated on middle-market mezzanine investments, by taking advantage of PGIM Private Capital’s scale, regional office network, and middle-market investment experience. Deal-flow is sourced through PGIM Private Capital’s direct prospect calling efforts, strong agent and equity fund relationships, and financing relationships with more than 1,000 companies. Emphasis is placed on companies with strong value-added businesses in narrowly defined market sectors. PGIM Private Capital also looks for strong management teams with demonstrated track records and a compelling economic stake in the company’s success. 

 

History 

PGIM Capital Partners has been investing in subordinated debt and structured equity of middle-market companies in North America since 1995. Prudential Capital Partners, L.P. (“Fund I”) was formed in September 2000 as the vehicle for all mezzanine and structured equity investing by us as well as third-party investors. We now have 10 people dedicated to the mezzanine funds, including founding partner Mark Hoffmeister, who now serves as a dedicated partner alongside Paul Meiring and Stephen Szejner.1 Funds II, III, IV and V were raised in 2005, 2008, 2012 and 2016, respectively. The most recent close for Prudential Capital Partners Fund V drew $1.825 billion in commitments. Throughout its history, PGIM Capital Partners has maintained a consistent mezzanine strategy, focusing on traditional industries and leveraging the broad reach of PGIM Private Capital’s regional office network for its relationships and credit expertise. 

Lead Role

We believe that single-investor transactions permit a more intensive due diligence process, more favorable terms and pricing, and more control of our investment post-closing. In addition, these transactions foster the formation of a close relationship with management, which improves the monitoring of investment performance and the generation of follow-on financings. 

RECENT INVESTMENTS 


PGIM Capital Partners has sought to create a portfolio with balance and diversity in mind. The portfolio is comprised of more than 50 investments located throughout the United States, Canada, and Europe, and includes a broad cross section of industries as of 3/31/19. The common traits between our investments are clear; all companies have significant market presence, outstanding management teams, and a proven ability to generate strong cashflow.

 

INVESTMENT TEAM
 

Jeffery Dickson
Managing Partner, Executive Managing Director and Head of Alternatives
Head of Alternatives
Phone: 312-540-5438
Email: click here to contact
Territory: All

Steve Szejner
Partner
Phone: 312-565-6265
Email: click here to contact
Territory: All

Mark Hoffmeister
Partner
Phone: 312-540-4215
Email: click here to contact
Territory: All

Paul Meiring
Partner
Phone: 212-626-2060
Email: click here to contact
Territory: All

 

 

1. Founding partner Jeffery Dickson continues to serve as a managing partner of the fund.
*Prudential Capital Partners Funds I, II, III, IV, V are closed to new investors 
**Operates through PGIM Real Estate Mexico S.C. 
†Operates through PGIM (Australia) Pty Ltd.