Private Matters for Portfolio Resilience

Access differentiated income and diversification through private credit.

The Private Credit Opportunity What Sets Us Apart Navigating Private Credit Added Insights

INCOME BEYOND PUBLIC MARKETS​

Formerly the exclusive purview of institutions, access to private credit is expanding as commercial lending shifts from traditional banks to nonbank lenders. The $3 trillion asset class offers access to higher yield potential, structural safeguards, and an opportunity set insulated from public market volatility. No longer niche, private credit has become an integral allocation for investors seeking resilient and diversified sources of income.

A History of Outperformance

Private credit boasts a history of strong risk-adjusted returns featuring outperformance versus traditional fixed income and significantly less volatility.

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Higher Inflation-Hedged Yields

With floating rates that act as a natural hedge against inflation, private credit typically offers investors higher yields than traditional fixed income.

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Structural Safeguards Limit Risk

Negotiated directly, private credit typically emphasises senior loans prioritised for repayment, protected by covenants, and secured by borrower assets.

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EXPANSIVE OPPORTUNITY SET

Private credit affords access to an expansive opportunity set with low correlations to public equity and bond markets, helping mitigate overall volatility.

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FOCUSED ON QUALITY AND RESILIENCE

Supported by a $114 billion global platform, PGIM’s private credit approach combines more than 75 years of lending experience with a conservative, insurance‑based credit culture. PGIM has managed direct lending strategies since 2000, with a portfolio management team averaging 27 years of industry experience.

Differentiated origination 

Global access to lower and core middle‑market opportunities across both sponsored and non‑sponsored borrowers, supporting greater selectivity.

Conservative credit posture

100% first‑lien senior secured loans, maintenance covenants on all deals, and a focus on lower entry leverage.

Scale with alignment

 

Decades of private credit experience, significant platform scale, and aligned interests via meaningful investments alongside clients.

Navigating Private Credit with Confidence

Knowing what matters most when evaluating private credit opportunities is critical as the asset class continues to play an increasingly important role in investor portfolios. In the videos below, PGIM direct lending expert Dianna Carr-Coletta shares her fundamentals-based perspective on current market conditions and details the key portfolio construction principles behind the pursuit of resilient outcomes across market cycles.

PRIVATE CREDIT REALITY CHECK: SEPARATING NOISE FROM FUNDAMENTALS

Direct lending is an inherently long-term pursuit offering investors stable, attractive income in exchange for their patience. Learn how emphasizing quality and avoiding compromise in portfolio construction can foster confidence amid shifting conditions.

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The Three Building Blocks of Private Credit Resilience

What are the main characteristics of resilient private credit portfolios? Explore how diversification, cash flow sustainability, and manager experience can contribute to durable portfolios designed to navigate unpredictable market environments.

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