History

Prudential Capital Group 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 Prudential Capital Group and third-party investors. Jeffrey Dickson and Mark Hoffmeister served as founding partners and continue to be exclusively dedicated to the mezzanine funds, joined by Paul Meiring. Prudential Capital Partners now has 20 people exclusively dedicated to the mezzanine funds.  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, Prudential Capital Partners has maintained a consistent mezzanine strategy, focusing on traditional industries and leveraging the broad reach of Prudential Capital Group’s regional office network for its relationships and credit expertise.

Focus on the Middle-Market

Prudential Capital Partners believes the middle-market provides the best opportunities and values for mezzanine investing. The funds target firms with revenues between $30-$500 million and EBITDA of at least $7 million.

Broad Sourcing Capabilities 

Prudential Capital Partners' mezzanine strategy fully utilizes Prudential Capital Group's regional office network to cast a wide net both in terms of geography and type of source (direct, agent, equity fund). Prudential Capital Group has developed strong relationships with middle-market companies through its large portfolio of more than 1,000 companies, and its active calling efforts. These relationships often provide Prudential Capital Partners with proprietary access to potential transactions at a very early stage in a company's search for capital. Prudential Capital Group also has a broad network of relationships with regional and national intermediaries and with middle-market, private equity funds, which provide a wide range of deal flow.

Fundamental Value Approach

Prudential Capital Partners focuses on companies pursuing a targeted market with a value-added product, process or service. These companies are typically the leading firms in their industry segment in terms of sales, margins or growth, often capturing a niche that is too complicated or fragmented for a larger company to pursue.

Lead Role

Prudential Capital Group believes that single-investor transactions permit a more intensive due diligence process, more favorable terms and pricing, and more control of its 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.

Active Portfolio Management

Once a transaction closes, Prudential Capital Group continues to work actively with portfolio companies. The same regional deal team that originated the transaction manages each investment. The team monitors the portfolio company through the review of monthly financial statements and frequent on-site visits. In addition, the principals of the fund maintain CEO and board-level contact and participation.