PGIM launches global private credit fund for wealth investors

PGIM has launched its PGIM Global Private Credit Fund SCA, a Luxembourg-domiciled Part II UCI fund aimed at wealth investors in the UK, continental Europe and Asia.

The lead portfolio manager for the fund is PGIM global head of middle market direct lending, Matthew Harvey, who also oversees the broader investment team.

The fund looks to provide income, long-term capital appreciation and global diversification by investing in senior secured loans to middle market companies in North America, Europe and Australia.

It is sector agnostic, but focuses on less-cyclical industries and typically avoids those that are highly levered, volatile or heavily regulated.

PGIM’s investment team will target companies with EBITDA of $10m to $75m, which the firm argued typically has spreads that are higher and covenant protections that are stronger than other areas of direct lending.

A significant portion of the portfolio is allocated to non-sponsored loans from privately held companies, aiming to provide wealth investors with access to a broader segment of the market and a portfolio that is complementary to funds that focus on private equity-sponsored loans.

“Our new Part II UCI leverages a differentiated strategy built on broad loan and sector diversification, a targeted middle market focus, global reach and deep, local origination access,” Harvey said.

“We combine these factors with highly disciplined underwriting, such as covenants on every loan, and a heritage of investing in private credit on behalf of institutional investors for decades, which we believe offers international wealth investors a compelling investment opportunity with strong alignment of interest.”

PGIM head of international wealth, Matt Shafer, added: “Over two decades, we have built a global origination platform that stands apart, offering investors access to global direct lending opportunities, exposure to both non-sponsored and sponsored loans that provide better diversification and terms, and a highly experienced in-house team.

“This UCI offers an alternative and diversified return stream to help manage the risk and return profiles of portfolios.

“As more wealth investors turn to private credit, we believe that we can deliver the expertise, alignment and differentiation that they are looking for through drawing upon over two decades of experience managing direct lending strategies for institutional investors.”

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