PGIM has announced a strategic expansion into private credit secondaries, with plans to deploy up to $1 billion over the next two years into the emerging asset class.
The initiative draws on PGIM’s decades of experience in private credit and private equity secondaries, targeting a market where deal volume is expected to exceed $50bn over the next two to three years.
The platform will focus on sourcing opportunities in direct lending as well as opportunistic credit areas, including mezzanine and special situations. It will target both GP- and LP-led deals across the US and Europe, with a particular emphasis on middle market transactions, the firm announced.
With $265bn in private credit and secondaries assets under management, PGIM said its expertise would enhance sourcing and underwriting, providing a competitive edge in complex transactions.
The initiative will be led by Alex Stuart, managing director and head of private credit secondaries, and Maelle Reichenbach, senior principal of private credit secondaries, supported by a team of investment professionals from PGIM’s private credit business and Montana Capital Partners (MCP), PGIM’s private equity secondaries business.
“Private credit has evolved significantly in the half century that we’ve been operating in the asset class. The emergence of secondaries is a natural stage in that evolution,” said Matt Douglass, head of private credit at PGIM.
“This expansion reflects our commitment to meeting the growing demand for innovative private credit solutions beyond primary markets. Our deep understanding of issuers and GPs across the middle market positions puts us in a strong position to deliver on transactions in this space,” he noted.
Stephan Wessel, chief executive officer of MCP, added: “By combining PGIM’s breadth of private credit expertise with our team’s experience in secondaries, we believe we are well positioned to navigate complex transactions and capitalise on emerging opportunities in this growing market.”
PGIM said the expansion responds to rising demand for liquidity solutions in private credit and represents a natural evolution of its middle market direct lending and private equity secondaries businesses.
