Prudential Capital Group




Bridging the gap between equity and senior debt, mezzanine capital typically comes in the form of subordinated debt with attached warrants.

Prudential Capital Group currently sponsors three mezzanine funds:

Prudential Capital Partners, L.P.
$619 million middle-market fund
Diverse group of 21 investors
Closed in July 2001 and fully
  invested in May 2005

Prudential Capital Partners II, L.P.
$775 million middle-market fund
Diverse group of 22 investors
Closed in March 2005 and fully
  invested in July 2008

Prudential Capital Partners III, L.P.
$965 million middle-market fund
Diverse group of 16 investors
Closed December 2009

Structural Characteristics
Repayment of principal after senior debt has been fully amortized
Combination of cash coupon and deferred interest
Nominal warrants representing minority stake in issuer

Typical Size
$10 million - $75 million

Typical Uses
Recapitalizations
Expansion/growth capital
Sponsored and sponsorless buyouts
Acquisitions
 
Issuer Benefits
Patient capital supporting long-term growth
Less costly than direct equity issuance
Attractive alternative to an outright sale of the business
Structural flexibility



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