US-based asset manager PGIM has made a final close of its mid-market energy credit fund at $619m.
PGIM Energy Partners II, the second commingled private credit fund available to unaffiliated investors, closed with a combination of legacy and new investors, attracting – according to a press statement – a diverse group of institutional investors, including insurance companies, pension funds and family offices.
PEP II will provide financing to middle market upstream oil and gas and midstream companies in North America.
Matt Baker, head of PGIM Energy Partners, said: “Demand for oil and gas production is poised to continue as a key component of the future energy mix, 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.”
The fund has partnered with one upstream company to date and has a pipeline of investment opportunities that it is currently evaluating.
PGIM manages around $10 billion in energy assets with investments in more than 120 companies and has been investing in the energy sector for over four decades.
