Middle Market Lending: Higher Yields, Better Terms

Sep 4, 2025

 

PGIM looks at untapped opportunities in middle market lending.

Private credit is a rapidly growing asset class, offering investors compelling opportunities to enhance their portfolios. In this exclusive webinar, Dianna Carr-Coletta, Managing Director and Partner at PGIM, shares how PGIM leverages disciplined underwriting, strong covenants, and a robust origination network to deliver value in the core middle market.

Discover why middle market lending is a standout investment opportunity:

  • Expanded Opportunity Set: Access stronger alpha potential in a less crowded segment

  • Higher Yields: Capture possible yield advantages vs. large market loans

  • More Favourable Terms: Understand how rigorous underwriting standards aim to create better investor outcomes

Key Takeaways

  • Lower default rates driven by proactive covenant structures

  • Resilient returns from family-owned, non-sponsored deal flow

  • Stronger risk-adjusted outcomes through conservative leverage and senior secured positioning

Source(s) of data (unless otherwise noted): PGIM, as of June 2025.


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