PGIM has launched a new private credit secondaries platform, with plans to deploy $1bn (£745.3m) into the asset class.
The global asset manager said the platform will focus on sourcing opportunities in direct lending and opportunistic credit areas, such as mezzanine and special situations.
It will target both general partner and limited partner deals across Europe and the US, with a particular focus on middle-market transactions, PGIM said.
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The launch of the platform marks the firm’s first strategy within private credit secondaries. It also comes at a time when deal volume in the secondaries market is expected to exceed $50bn within the next two to three years.
“Private credit has evolved significantly in the half century that we’ve been operating in the asset class,” Matt Douglass, head of private credit at PGIM, said. “The emergence of secondaries is a natural stage in that evolution. This expansion reflects our commitment to meeting the growing demand for innovative private credit solutions beyond primary markets.”
The platform will be led by Alex Stuart, managing director and head of private credit secondaries, and Maelle Reichenbach, senior principal of private credit secondaries. It will be further supported by PGIM’s private credit business and Montana Capital Partners (MCP), PGIM’s private equity secondaries business, the firm said.
Read more: PGIM closes middle market direct lending fund at $4.2bn
Currently, PGIM has $265bn of assets in private credit and secondaries, managing $1.5tn in total assets.
“By combining PGIM’s breadth of private credit expertise with our team’s experience in secondaries, we believe we are well positioned to navigate complex transactions and capitalise on emerging opportunities in this growing market,” said Dr Stephan Wessel, chief executive of MCP.
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