The New Energy Landscape
Our energy system sits at an inflection point—shifting away from fossil fuels where possible, promoting electrification, and adding renewables to the mix.
PGIM’s Strategies around energy investing
Fueling the Future: Investing Across the Global Energy Landscape
PGIM offers clients diversified solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit and other alternatives. Explore our energy focused investment strategies that address:
Global Infrastructure
A global, diversified and flexible portfolio construction designed to provide the potential for higher upside capture compared to more defensive infrastructure strategies, while still mitigating downside capture. Jennison Associates has been a pioneer in utility investing managing one of the largest utility strategies in the US since the 1990’s.
Global Natural Resources
This strategy utilizes a top-down analysis fused with bottom-up, fundamental research to uncover companies that can organically grow both reserves and production, control costs, and provide the needed technology and infrastructure used in the search for reserves and the final production process.
Real Estate Data Centers
In 2023, PGIM Real Estate launched its data center strategy, investing primarily in hyperscale global data centers worldwide. PGIM Real Estate has invested in data centers with a total value of over $900 million completed in partnerships with leading data center operators, including Equinix.
Mid-Market Energy
PGIM Private Capital manages infrastructure-focused strategies for institutional investors, investing in mezzanine-level securities in middle-market energy companies. The strategies invest in the investment-grade private debt of companies involved in renewable energy, power generation and transmission, transportation (airports, toll roads, bridges) and a range of other real assets concerns.
Carbon Solutions
Carbon Solutions takes a differentiated, comprehensive alpha-based approach to decarbonisation with a concentrated portfolio of 45-65 companies. With a global, all-cap multi-sector universe, the strategy seeks to invest across a broad range of companies, particularly where the contribution to decarbonisation and likely future growth are being underestimated.
Explore the research
Today we stand at a critical inflection point for the energy system. For decades, the world has wrestled with an energy trilemma in balancing three goals: energy security and reliability, universal access to affordable energy, and mitigating and avoiding environmental harm. However, the complexity of balancing these competing priorities has dramatically increased in a world facing multiple interlocking crises.
Nobody is Perfect: Tradeoffs in Sources of Electricity
Fossil fuels and zero-carbon sources present different tradeoffs in their dispatchability, affordability and emissions.
Investment Implications
Multiple energy sources will be needed to meet growing global demand, creating a range of investment opportunities around the world.
Portfolio Implications
CIOs need an action plan to address the cross-portfolio implications arising from a changing global energy system.
