The Convergence of Public and Private Credit
Leveraging insights from investment professionals across our businesses, PGIM examines the forces driving convergence between public and private credit.
Investing in Alts
Why PGIM Alts?
Bringing together the benefits of global scale and deep asset-class expertise across public and private markets, PGIM seeds, develops and manages a broad range of liquid and illiquid alternative strategies for some of the largest institutional investors globally.
We take a thoughtful approach to allocating to alternative strategies, and aligning these with clients’ investment objectives, risk profiles and liquidity preferences. It is because of this thoughtful, intentional approach, and our unwavering pursuit of performance, that institutional investors around the world trust PGIM.
A GLOBAL LEADER IN ALTERNATIVES
$329B
$324B
$5B
Liquid Alternatives AUM
Deep Expertise and Track Record
PGIM has a long and consistent history of developing and managing a broad range of global alternative strategies and solutions across public and private markets, spanning the full spectrum of investment vehicles and liquidity terms.
Global Scale and Resources
With 1,450+ investment professionals across 41 offices around the world, our experienced teams have deep knowledge of local markets and specialized expertise across real estate, private credit, private equity secondaries and liquid alternative strategies.
Investment Specialization and Focus
PGIM’s investment philosophy and culture cultivate world-class active management. Our specialists have access to dedicated market research and technology to help facilitate investment management across the alternatives spectrum. Underlying investment strategies and portfolio and originations teams remain distinct within our multi-manager structure.
INVESTING IN ALTERNATIVES AT PGIM
PGIM Fixed Income offers a suite of alternative strategies that go beyond traditional fixed income. The strategies span a wide array of fixed income sectors, currencies, and derivatives and are designed to meet different risk and return objectives including low correlation to traditional fixed income and/or equities.
The platform ranges from long/short market-neutral relative value strategies that seek to capitalize on dislocations across developed market government bonds and derivatives, to a long/short emerging markets debt strategy and high-conviction credit opportunity strategies.
At PGIM Fixed Income, we conduct intense fundamental analysis and utilize quantitative tools and methods to identify top-down macro and interest rate trends, long-term market trends, and short-term, tactical trading opportunities.
PGIM Quantitative Solutions offer systematic liquid alternative strategies that seek to outperform consistently over the long run while mitigating downside risk. We utilize proprietary models and optimization methods, and our selective factor exposures are based in economic theory and insights from behavioral finance. We continually seek to improve these processes through ongoing research and model enhancements. Our experienced investment professionals choose from a wide range of instruments to take long and short positions in different countries and asset markets. Offering custom strategic overlay and actively managed options, PGIM Quantitative Solutions’ alternative strategies are designed to provide diversification benefits through low correlation to traditional assets to help our clients solve their unique investment challenges.
LIFE-IMPROVING HEALTHCARE INNOVATION
Jennison’s Global Healthcare strategy seeks to outperform long-only healthcare approaches over full market cycles by taking advantage of upside volatility in what we consider to be one of the most dynamic sectors of the market while simultaneously seeking to manage downside volatility in difficult market environments. The investment team believes that excess returns can be generated by investing in a concentrated, high conviction long/short portfolio and that correctly analyzing new product opportunities can identify new growth companies and lead to significant alpha generation potential. This can be anything from a drug that improves the outcomes for a given disease to a device that is less invasive and more efficacious or a service or model that improves the quality of care while lowering the cost of care. The strategy is constructed from bottom up fundamentally driven investment ideas for both long and short positions.
We believe the most effective way to achieve a reliable and consistent return stream is by constructing a portfolio that fully leverages specific risk. We manage risks through a robust framework at the position, industry, and portfolio level. Both our portfolio and industry net/gross exposure is informed by multiple economic and quantitative factors. Our approach seeks to create a portfolio with aggregate characteristics such as a higher Sharpe ratio, reduced volatility, and lower correlations with broader market indices.
There is no guarantee our objectives will be met. All investments contain risk, including possible loss of principal. The views expressed herein are those of Jennison's investment professionals at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice.
Speaking of Alternatives
Speaking of Alternatives is an original podcast from PGIM, providing a global perspective on the rich and diverse landscape of alternative investments. Each month, leaders cut through the complexities and get to the heart of alternative investing. They look beyond the headlines and scrutinize the latest trends and strategies driving this important asset class.
Latest Insights
Credit Markets in Transition: Asset-Based Finance
This episode of All the Credit® kicks off our new sub-series, Credit Markets in Transition, with an in-depth look at the rapidly growing ABF sector.
Private Market Investment Solutions for Cross-Border Insurance
A leading European re-insurance company was seeking an optimal solution to grow private market exposure to U.S. commercial real estate debt.
All data (unless otherwise noted) is as of 12/31/24. Assets under management are based on company estimates and are subject to change. For Professional Investors only. All investments involve risk, including the possible loss of capital. There is no guarantee these objectives will be met. Includes legacy lending through PGIM’s parent company, PFI.
- Public and Private Alternatives AUM/AUA includes hedge fund, mezzanine and other private credit, real estate and infrastructure strategies across all PGIM businesses.
- PGIM Private Alternatives manages $324 billion gross in private alternatives strategies across private credit, real estate, agriculture, sustainable investing, infrastructure and private equity. These strategies are managed by PGIM Real Estate (est. 1970), PGIM Private Capital (est. 1925) and Montana Capital Partners (est. 2011); underlying investment strategies and portfolio and originations teams remain distinct, with each affiliate maintaining its own governance. Note: AUM/AUA includes $7.2B from Deerpath Capital, in which PGIM acquired a majority stake in late 2023. PGIM Real Estate net AUM is $132.5B and AUA is $47.3B.
