Established Heritage of Energy Investing

Prudential Capital Energy Partners is the middle-market energy fund management business sponsored by Prudential Capital Group. Prudential Capital Energy Partners’ investment philosophy is focused on mezzanine and equity investments in middle-market North American energy companies across the upstream oil and gas and power industries.

*Prudential Capital Energy Partners Funds are closed to new investors
**Operates through PGIM (Australia) Pty Ltd.

With extensive industry expertise and deep market knowledge, Prudential Capital Energy Partners will continue its strategy of selective investment sourcing, augmented by its structuring capabilities, capital flexibility, and broad experience within energy to pursue attractive investment opportunities in the Power and Upstream sectors. These segments have the capacity to generate attractive risk-adjusted returns through commodity cycles.

 

Fund Highlights

Industry-Leading Investment Platform

Consistent with the approach that Prudential has successfully undertaken in the past with its U.S. corporate mezzanine platform, Prudential Capital Partners, PCEP will leverage Prudential’s existing energy investment platform and expertise through the formation of the Fund. In connection with this approach, the Fund will benefit from PCG’s successful investment heritage in the following key aspects: (i) direct sourcing, (ii) active portfolio management, and (iii) scale of existing operations.

Deep Industry Expertise

Prudential Capital Energy Partners invests in specific industry sectors, including: (i) conventional and renewable generation, electric transmission, distributed generation, and energy storage projects; and (ii) upstream oil and gas assets through operated and non-operated working interests. The PCEP team has extensive experience and relationships across each of these sectors, which enhances the Fund’s ability to identify attractive investments while reducing reliance on any one sector in order to meet investment pace or achieve adequate returns while benefitting from portfolio diversification. Within these sectors, Prudential Capital Energy Partners invests with proven middle market management teams that have demonstrated attractive track records.

Proprietary Sourcing Network

Prudential Capital Energy Partners sources deals through Prudential Capital Group’s proprietary North American deal network, with national coverage of Power and Upstream Oil & Gas. We believe this network will continue to provide consistent access to deal flow on both a sponsorless and sponsored basis. Since 2011, 11 of 13 investments in the Energy Legacy Portfolio were sourced on a direct basis, and over 35% were with repeat management teams. The firm has an effective business development approach that provides unique sourcing channels for investment opportunities.

Scale of Operations

Within Prudential Capital Group, the Energy Finance Group manages a $15.5 billion diversified energy portfolio of private investment grade and below investment grade debt, mezzanine, and equity investments.  EFG’s two dedicated Oil & Gas and Power investment units will supplement the dedicated Prudential Capital Energy Partners investment professionals in originating and executing mezzanine, structured cash flow and equity investments for the Fund. Since 2011, the team committed more than $440 million across 13 investments into the Energy Legacy Portfolio, which was closed in December 2016, upon the first closing of the Fund. Prudential Capital Group’s scale allows the investment teams to maintain a broad view of the energy markets, to research and analyze prospective investments more effectively, and to take advantage of a diverse investment sourcing network.

 

Seasoned Asset Manager

The Fund will be part of Prudential Capital Group, the largest manager and originator of middle-market, fixed-income private placements in the United States and one of the largest investors in the global private placement market, with more than $81 billion of domestic and international private debt and equity investments in more than 1,000 companies (as of June 30, 2018). Prudential Capital Group has a 175+ member investment staff dedicated to the unit, and operates through an office in Newark and seven U.S. regional offices in Atlanta, Chicago, Dallas, Los Angeles, Minneapolis, New York and San Francisco as well as five international offices located in London, Frankfurt, Paris, Milan and Sydney. Prudential Capital Group is also an experienced manager of institutional funds, including the five Prudential Capital Partners Funds, and numerous non-affiliated investment management agreements covering investment grade, below investment grade and junior capital investments. Prudential Capital Group has been investing in energy for more than 30 years, with more than $10 billion in energy private placements across the risk spectrum throughout North America over the past five years.