(Updates with Minneapolis office in the sixth paragraph.)
Jan. 31 (Bloomberg) -- Prudential Financial Inc., the second-largest U.S. life insurer, promoted Robert Derrick and Scott von Fischer to co-heads of U.S. corporate finance at the capital group as the company expands lending operations.
Derrick, who led the Atlanta office, adds responsibility for New York and Dallas, according to a statement today from Newark, New Jersey-based Prudential. Von Fischer will oversee the business in San Francisco, Los Angeles and Chicago, where he was head of the city’s office. Both report to Allen Weaver, head of Prudential Capital Group, which managed a portfolio of $60 billion as of Sept. 30.
Prudential and No. 1 MetLife Inc. are bolstering private lending as yields decline on publicly traded securities and some banks scale back. Prudential Capital, which deploys money from its general account and institutional client funds, had $10 billion in originations last year, more than twice as much as a decade earlier.
There is “a lot of appetite in the private debt market,” Weaver said in an interview today. “A lot of companies would like to have some long-term, fixed-rate debt to hedge their interest-rate risk.”
Billy Greer replaces Derrick as head of the Atlanta office, and William Engelking takes over in Chicago. The jobs taken by von Fischer and Derrick are new positions, said Theresa Miller, a spokeswoman for the company.
The firm also created a Dallas-based energy finance group to be led by Managing Director Randy Kob and said it is opening a Minneapolis office, to be led by Vice President Peter Pricco.
Stephen Demartini, who had responsibility for the San Francisco and Los Angeles offices, will be retiring after June 30, according to the statement. Mitchell Reed will head the San Francisco corporate finance office and Jason Richardson will run Los Angeles. Both were promoted to managing director from senior vice president, as were Julia Buthman, who will head Dallas, and Matt Douglass in New York.
--Editors: Dan Kraut, Steve Dickson
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