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PGIM, the global asset management business of new York-listed Prudential Financial, has announced the final close of PGIM Energy Partners II, LP, a commingled private credit fund that is available to unaffiliated investors in its middle market energy series. 

PEP II closed with $619 million in available capital from a combination of legacy and new investors. The fund attracted investors including insurance companies, pension funds and family offices.

The fund provides financing to middle market upstream oil and gas and midstream companies in North America. PEP II structures and funds creative capital solutions for asset development, acquisitions, refinancings and recapitalisations through deployment of senior debt, junior debt and structured equity. 

“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,” Matt Baker, head of PGIM Energy Partners, said. “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,” Baker added. 

The fund has partnered with one upstream company in Fund II to date and has a pipeline of investment opportunities that it is evaluating. PGIM, which manages around $10 billion in energy assets with investments in more than 120 companies, has been investing in the energy sector for over four decades.