The Prudential Capital Group Guide to Private Placements


When funding capital needs that exceed internally generated cash flow, it is common for growing companies to look to their banks or to public debt markets to source additional capital. A private placement is a viable alternative to these types of loans.

A "private placement" offering is the private sale (or issue) of corporate debt or equity securities by a company (or issuer) to a select number of investors. There are many types of private placements but the most common is long-term, fixed-rate senior debt.

Traditionally, middle-market companies have issued debt in the private placement market either directly with a private placement lender (typically a large insurance company or other institutional investor) or through an intermediary (most often an investment bank), who then solicits bids from several potential investors on a "best efforts" basis.

A private placement issuance is a way for institutional investors to lend to companies 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.”

The capital raised from issuing a private placement is commonly used to support long-term initiatives as opposed to short-term needs — for example, capital projects for expansion and growth, acquisitions, stock buybacks, or simply terming out shorter-term bank debt to free up liquidity — these are just a few situations where issuing a private placement could help you reach your goal. Equipped with the Prudential Capital Group Guide to Private Placements, you will have the information you need to explore whether private placement debt is the right type of capital for you and your business.

Navigating the World of Private Placements, the Prudential Capital Group Guide to Private Placements

We understand that many CEOs and CFOs may not be familiar with private placements, so this guide starts with a more detailed overview of what a private placement is, typical uses for the capital received from issuing a private placement as well as pricing and payment structure.

What Else is Inside the Prudential Capital Group Guide to Private Placements?

  • What is a Private Placement?
  • Types of Private Placements
  • How a Private Placement Both Complements and Differs from a Bank Facility
  • How to Complete a Private Placement
  • How the Private Market Has Responded During Times of Capital Market Volatility
  • Why Issue a Private Placement?

Whether you are preparing to issue your first private placement or are simply interested in exploring your capital options, the Prudential Capital Group Guide to Private Placements is your one-stop resource.


Interested? We would be happy to discuss how a private placement could work for you.



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