Prudential Impact Investments

Reuben TeagueDirector, Impact Investments

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• Prudential’s Office of Corporate Social Responsibility (CSR) manages a set of tools that the

company utilizes in its CSR work:

- Strategic grants

- Impact investments (out of both corporate and foundation assets)

- Corporate contributions (supporting pro-social causes that complement business

interests)

- Engagement of Prudential executives and employees in volunteering and service

- Matching Gifts administration

• Oversight is provided by a board consisting of corporate directors and Prudential

executives

• Prudential’s CSR work is local, national and international in scope with an emphasis

on its headquarters city of Newark, NJ

Corporate Social Responsibility

PII Summary

Impact Investments (II) was formally established in 1976 and since that time has made

more than $1.5 billion in investments. II provides financing in a variety of forms to for-

profits and non-profits to create powerful social impact while earning an appropriate risk-

adjusted return.

Investments are focused on strategic areas determined by the Office of Corporate Social

Responsibility (CSR). CSR adopted a new strategic framework in the beginning of 2014

and future investments will be deployed against this framework.

Focus areas for impact:

Basic needs – housing, energy, food

Quality Jobs

Savings and Protection

Urban Transformation

PII Summary (cont)

The outstanding balance of the portfolio is approximately $350 million with a stated goal

of increasing to $1 billion by 2020.

Portfolio is divided among direct investments (equity and debt), structured finance, real

estate and revenue-backed bonds, LP funds, and financial intermediaries.

Nearly all holdings are private (just one publicly-traded)

Real estate related investments are largest portfolio component

Rigorous portfolio management is central to our work

Impact assessment across asset classes is a growing area of emphasis

Overview of Newark

• At the end of 2013, there were over $2 billion in active development projects downtown including:

– Over 1 million square feet of commercial development

– 200,000 sf of retail development

– 1000 units of housing, with roughly 20% set aside for affordable housing

– 250 new hotel rooms

• Physical development is complemented by civic amenities like Military Park, vital anchor

institutions like NJPAC and Rutgers, and the on-going commitment to education reform

• Prudential, in addition to its new tower, is investing approximately $100 million in a variety

of projects that will leverage over $1 billion in new development

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Downtown Development

Downtown Development (cont)

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Prudential Tower

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Prudential Tower (cont)

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Hahne’s Building

Confidential - For internal use only

hanini group

• Development team led by L&M Development Partners and the Hanini Group

• 150+ Loft Apartments

• 100,000 sf of retail

• Whole Foods is a confirmed tenant

•First hotels to be built in downtown Newark in the last 40 years

•Courtyard Marriott has 150 rooms and anchor restaurant, Joe’s Crab Shack

•Indigo Hotel is a 106 room boutique hotel with rooftop bar and full service restaurant

Courtyard by Marriott and Indigo Hotels

Teachers Village

Teachers Village is a catalytic

redevelopment project on

Halsey Street that features

eight new buildings consisting

of:

✏ 3 new charter schools and a

daycare facility

✏ 205 units of rental housing

marketed to teachers, and

✏ 65,000 sf of high quality retail

for 20 different businesses.

Military Park

• Six-acre green space located on Broad Street, reopened in 2014

• Redesign team is Biederman Redevelopment Ventures, who successfully revitalized Bryant Park in New York City

• Park will have a restaurant (Burg) and intensive programming

Military Park

Military Park

The future of downtown Newark