PGIM closed its second private credit fund for middle-market energy companies, called PGIM Energy Partners II (PEP II), with $619 million from a mix of existing and new investors. The fund attracted institutions like insurance companies, pension funds, and family offices.
PEP II offers loans and creative financing to mid-sized oil and gas, as well as midstream companies in North America, assisting with asset development, acquisitions, and refinancing. The fund offers various types of financing, including senior debt, junior debt, and structured equity, making it more flexible compared to other funds.
So far, Fund II has supported one upstream company and is reviewing more opportunities. PGIM manages about $10 billion in energy assets, has invested in over 120 companies, and brings more than 40 years of experience in the energy sector.
KEY QUOTES:
“Demand for oil and gas production is poised to continue as a key component of the future energy mix,1 creating a strong structural demand potential from middle market companies for reliable, strategic capital. Many of these companies remain non-sponsored and our advantage is that we have a broad, local sourcing network and sector knowledge that equips us to be effective partners to them. Our sourcing network continues to generate a strong pipeline of opportunities. We are grateful for the support and confidence shown by our investors and are excited about the potential opportunities with new and repeat teams.”
Matt Baker, head of PGIM Energy Partners
