Newark-based PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc., has launched a global private credit fund, a Luxembourg-domiciled Part II UCI fund designed for wealth investors in the UK, continental Europe and Asia.
The lead portfolio manager is PGIM’s global head of middle market direct lending, Matthew Harvey, who also oversees the broader investment team.
The fund aims to deliver income, long-term capital appreciation and global diversification by investing in senior secured loans to middle market companies in North America, Europe and Australia. While sector agnostic, it focuses on stable, less cyclical industries and generally avoids those that are highly levered, volatile or heavily regulated.
The investment team focuses on seeking value in middle market lending by targeting companies with EBITDA of US$10 to US$75 million. This segment of the market typically has spreads that are higher and covenant protections that are stronger than other areas of direct lending and can deliver attractive risk-adjusted returns.
“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.”
The fund is domiciled in Luxembourg and has initially been passported for marketing in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Sweden and Switzerland, and is available for private placement to qualified investors in other jurisdictions, including the United Kingdom, Hong Kong and Singapore.
