A diverse group of unnamed institutional investors, including insurance companies, pension funds and sovereign wealth funds, have committed to PGIM’s second middle market energy fund, leading to a $619m (€533.2m) final close.

PGIM’s Energy Partners II (PEP II) fund will provide financing to US oil and gas projects looking to grow production and build infrastructure. Rather than acquiring assets directly, the fund is designed to lend capital to middle market companies, the manager said.

PEP II is the second commingled private credit fund in PGIM’s middle market energy series. 

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. “

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