The fund will provide senior secured financing to middle market companies across North America, Europe, and Australia, and has attracted commitments from a range of institutional investors including insurance companies, pension funds, and sovereign wealth funds.
Its strategy focuses on delivering attractive risk-adjusted returns through a portfolio of directly originated senior loans to both sponsored and non-sponsored issuers. The fund has already begun deploying capital with a pipeline of upcoming opportunities.
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“Much of the growth in direct lending in recent years has been in sponsor-backed deals, but that channel is no longer sufficient to achieve appropriate diversification and deployment targets for investors,” said Matt Harvey, head of middle market direct lending for PGIM’s private capital business.
“Our ability to capture both sponsored and non-sponsored channels is a differentiator and has been validated by our investors.”
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“Origination capability is the cornerstone of success in private credit as it underpins our ability to execute with discipline, benefiting from broader selectivity. In a market characterised by information asymmetry, direct bilateral origination at scale across the middle market — built over years — creates proprietary deal flow and underwriting advantages,” he added.
