Speaking of Alternatives …Let's Talk Energy Mezzanine with Brian Thomas
Energy mezzanine financing occupies a unique position between credit and equity, offering growing companies access to capital without diluting ownership. In this episode, Brian Thomas, Head of Real Assets, Private Credit at PGIM, joins Keshav Rajagopalan to explore the specialised world of energy mezzanine investing. They discuss why this niche strategy matters, how it fits into institutional portfolios, and what's driving demand across conventional energy, power, and renewables.
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Key Takeaways:
- Energy mezzanine financing bridges the gap between senior debt and equity, providing tailored capital solutions for mid-sized companies. – [04:00]
- The energy sector is shifting from rapid growth to a more disciplined, cash-flow-focused phase, creating opportunities for mezzanine capital. – [06:00]
- Financing solutions must align with step-change risk moments, matching capital to project milestones rather than long-term assumptions. – [11:00]
- Mezzanine financing is increasingly relevant in renewables and power, helping developers avoid equity dilution while meeting tight deadlines. – [15:00]
*The views expressed are those of the speakers at the time of recording and may not reflect their current opinions. This content is not investment advice.*
Learn More:
• @PGIM on X: https://twitter.com/pgim
• @PGIM on Instagram: https://www.instagram.com/pgim/
• PGIM on LinkedIn: https://www.linkedin.com/company/pgim
Shareables:
"Energy mezzanine financing is about solving a very specific need—providing capital without forcing companies to dilute ownership at critical growth stages." - Brian Thomas, Head of Real Assets, Private Credit, PGIM
"The energy sector is dynamic, and mezzanine capital gives us the flexibility to tailor solutions for companies navigating step-change risk moments." - Brian Thomas, Head of Real Assets, Private Credit, PGIM
"These are not off-the-rack solutions. Energy mezzanine investing requires deep sector knowledge and bespoke structuring to create real value." - Brian Thomas, Head of Real Assets, Private Credit, PGIM