We are excited to introduce ourselves to you and our unique way of working together. In order to provide you with the optimal experience, how would you describe yourself?
Our website requires features that may not be fully supported by your current browser. Please try an other one.

Private Placement

A practical alternative for raising capital.
our two cents

Private Placement

Hear Michael Campion, Brian Thomas, and Dianna Carr provide an overview of private placements.
A private placement is the private sale or “issue” of corporate debt or equity securities by a company or “issuer” to a select number of investors. It is another way that you can raise capital, versus selling a publicly offered security or establishing a traditional bank credit arrangement.

Three key features classify a securities issue as a private placement:
  • The securities are not publicly offered
  • The securities are not required to be registered with the Securities and Exchange Commission (SEC)
  • The investors are limited in number and are “accredited”
Traditionally, middle-market companies like yours have issued debt in the private placement market directly with a private placement investor, such as a large insurance company or other institutional investor, or through an agent (often an investment bank), who then solicits bids from several potential investors. Larger transactions ($100 million+) are typically done with an agent. It’s possible for there to be as few as one investor for any issue. A private placement issuance is a way for institutional investors to lend to you in a similar fashion as banks, with a “buy-and-hold” approach, and with no required trading or public disclosures. Historically, banks refer to investments as making “loans,” whereas insurance companies purchase “notes.”
Investment focus
  • Middle-market companies with attractive growth prospects and positive cashflow
  • Company revenue minimum of $50 million
  • Management teams and active ownership with an economic stake in the company’s success
  • Ability to provide senior debt investments between $10 - $300 million in size
  • Ability to provide subordinated debt investments between $10 - $100 million in size
Typical uses
  • Debt refinancing
  • Debt diversification
  • Expansion and growth capital
  • Acquisitions
  • Stock buyback / recapitalization 
  • Taking a public company private 
  • Employee Stock Ownership Plan (ESOP)
Structural characteristics
  • Senior debt and/or subordinated debt
  • Principal repaid after senior debt has been fully amortized
  • Combination of cash coupon and deferred interest
  • Ability to provide senior debt alongside junior capital for a seamless, one-stop solution with a single, relationship-oriented capital partner
  • Typical maturities: three - 25+ years
  • Flexible payment structures, including amortizing or bullet, and fixed or floating rate
Issuer benefits
  • Relationship-focused capital provider
  • Holistic approach to evaluation
  • Ability to fund transactions in multiple currencies
Typical Size
  • $10 million - $300 million
Types of Private Placements
There are many types of private placements but the most common is long-term, fixed-rate senior debt. Like bonds or bank loans, private placement debt securities can either be secured, meaning they are backed by collateral, or unsecured, where collateral is not required.

In addition to senior debt, other types of private placement debt issuances include subordinated debt, asset backed loans, leases, and shelf issues.
“Prudential Private Capital has been a supportive partner for more than a decade. The Prudential team’s deep knowledge of our business and creativity in customizing a financing package were a critical part of completing this transaction and positioning our company for long-term growth.”
Steve Arntzen, CEO, Century Gaming, Inc.
Navigating the world
of private placements
The Prudential Private Capital Guide to Private Placements.
Learn More
Prudential is authorized to transact business in all U.S.states and the District of Columbia. Product availability varies by state and country. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © Copyright 2021 Prudential Financial, Inc., Newark,NJ USA. All rights reserved. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. Your personal information may be stored and processed in any country where PGIM has facilities or in which we engage service providers and if you provide Personal Information to us you consent to the transfer of that information to countries outside your country of residence, including the United States, which may have different data protection rules than those of your country.