A look at how Prudential is managing its social investments, particularly in the city of Newark.

1. Prudential Impact Investments
Reuben Teague
Director, 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

3. 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

4. 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

5. 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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6. Downtown Development

7. Downtown Development (cont)
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8. Prudential Tower
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9. Prudential Tower (cont)
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10. 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

11. •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

12. 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.

13. 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

14. Military Park

15. Military Park

16. The future of downtown Newark