Pru Rakes It In For Third Mezz Fund

Firm: Prudential Capital Partners

Fund: Prudential Capital Partners III LP

Target: $900 million

Amount Raised: $965 million

Legal Adviser: Debevoise & Plimpton LLP

Prudential Capital Partners closed its third mezzanine fund in late January with almost $1 billion in pledges.

The firm locked up Prudential Capital Partners III LP with $965 million in commitments, surpassing its original fundraising target of $900 million.

Prudential Capital Partners is a mid-market mezzanine shop sponsored by Prudential Capital Group, a private fixed-income investment business of Prudential Financial Inc.

Investors in the fund include state and corporate pension funds, fund-of-funds managers, insurance companies and family offices. More than 80 percent of Fund III’s backers supported Prudential Capital Partners II LP, a $775 million sub-debt fund that closed in 2005. Prudential Capital Partners’s first fund, closed in 2001, had capital commitments totaling $619 million. The firm’s backers include the Minnesota State Board of Investment and the State Retirement and Pension System of Maryland.

As of Dec. 31, 2009, Prudential Capital Partners had funded 107 mezzanine and equity investments, 56 of which have already been realized. Fund III is earmarked to make investments ranging from $10 million to $100 million to help fund acquisitions, management-led and sponsored leveraged buyouts, recapitalizations and growth capital for mid-market companies in traditional industries.

Jeffrey Dickson is the managing principal of Prudential Capital Partners. Other principals include Mark Hoffmeister, Charles King, Allen Weaver and Matthew Chanin.

Prudential Capital Group has offices in Atlanta, Chicago, Dallas, Frankfurt, Los Angeles, London, Newark, New York, Paris and San Francisco and manages almost $46 billion of private debt, mezzanine and private equity.