PGIM has launched a private credit collective investment trust (CIT) as it pushes into defined contribution (DC) retirement plans.
The $1.4tn (£1tn) global investment management business of Prudential Financial has launched the PGIM Investment Grade Private Credit Fund, which will provide investors with exposure to investment-grade private placements and investment-grade asset-based finance securities.
The CIT will be made available through retirement solutions such as target-date funds and white-label structures, aiming to provide DC investors with diversified exposure to private credit.
“Private markets have long played an important role in institutional portfolios, but access within DC plans has historically been limited,” said Sara Shean, head of institutional DC at PGIM. “This new collective investment trust reflects PGIM’s continued focus on expanding access to private credit through structures that align with the nuanced needs of DC plans while seeking to deliver attractive risk-adjusted outcomes for retirement savers.”
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PGIM’s move follows a broader trend among large alternative asset managers seeking access to 401(k) retirement accounts after regulatory changes last year opened the door to greater private market exposure within retirement products. Firms including Blackstone, Apollo and Ares Management have also been expanding into the market.
PGIM sub-advises $57bn in assets across more than 55 CITs offered on the Prudential Trust Company and Great Gray trustee platforms. The firm’s broader credit platform manages $1.2tn in assets.
