Prudential Capital Partners, the middle-market mezzanine fund business of the second-largest U.S. life insurer, has exceeded the $1 billion goal for its latest fund that will provide financing to mid-sized companies.
Prudential Capital IV LP, which will invest primarily in North American companies, raised $1.15 billion, the Chicago-based unit said today in a statement. Prudential Capital raised $965 million for the prior fund gathered in 2009.
Private-equity deals typically consist of a combination of equity and debt. Mezzanine financing, the layer of funding between common equity and bank loans, tends to yield more than other forms of debt because it ranks behind other obligations in the event of default.
Prudential Capital’s fourth fund will deploy $10 million to $100 million per deal, investing as part of acquisitions, recapitalizations and growth financings. The firm expects to make investments over the next three to five years.
The mezzanine unit is part of Prudential Capital Group, the private fixed-income investment business of Prudential Financial Inc., which manages a portfolio of more than $65 billion as of Sept. 30.