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.
PGIM Private Capital launches ELTIF investment vehicle to support global direct lending strategy
LONDON, 28 May 2024 – PGIM Private Capital has launched its first European Long-Term Investment Fund (ELTIF) to support its direct lending strategy.
With US$101.5 billion in AUM, PGIM Private Capital is a source of private debt for public and private companies and is the private capital arm of PGIM, the US$1.34 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
The ELTIF will support PGIM Private Capital’s loan origination efforts in Europe, providing flexibility to extend loans across the continent with a more varied mix of borrower type.
PGIM Private Capital’s direct lending origination strategy focusses on core middle-market lending, with an ability to underwrite sponsored and non-sponsored loans, targeting a balanced portfolio mix over time. It is based on establishing close, long-term relationships with counterparties, which often enables more exhaustive due diligence and better investment suitability determination.
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Matt Harvey, head of Direct Lending at PGIM Private Capital, commented: “The majority of our loan origination is done on a direct basis, building one-on-one relationships with companies. This ELTIF structure will give us the flexibility we need to partner with the widest range of companies and enable us to further meet the growing need for private credit solutions from borrowers across Europe.”
ABOUT PGIM PRIVATE CAPITAL
PGIM Private Capital manages a US$101.5 billion portfolio of private placements, mezzanine, and direct lending investments through its regional office network (Atlanta; Chicago; Dallas; Frankfurt, Germany; London; Los Angeles; Madrid; Mexico City¹; Milan; Minneapolis; Newark, New Jersey; New York; Paris; San Francisco; and Sydney²) and purchases up to US$16.0 billion annually in predominantly senior debt and junior capital. PGIM Private Capital manages more than US$20.0 billion in outside non-affiliated assets through its Institutional Asset Management unit and Alternative Investments unit, comprising Direct Lending, PGIM Capital Partners, and PGIM Energy Partners mezzanine funds. All data as of 31 Dec. 2023. For more information, please visit pgimprivatecapital.com.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (PFI). PFI has a history that dates back over 145 years and through more than 30 market cycles. With 41 offices in 19 different countries (as of 31 March 2024), our more than 1,450 investment professionals are located in key financial centres around the world.
Our firm comprises multi-managers that collaborate with each other and specialise in a particular asset class with a focussed investment approach. This gives our 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. As a leading global asset manager with US$1.34 trillion in assets under management (as of 31 March 2024), PGIM is built on a foundation of strength, stability and disciplined risk management.
For more information, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
1 The Mexico City office operates through PGIM Real Estate Mexico S.C.
2 The Sydney office operates through PGIM (Australia) Pty Ltd.
In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorised and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions, or licences available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).
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