PGIM Boosts Private Credit with $4.2B Fundraise

PGIM has closed its second middle market direct lending fund with over $4.2 billion in capital. This fund, named PGIM Senior Loan Opportunities II (PSLO II), focuses on middle market direct lending. The capital raise marks one of the largest private credit fund closures this year. Institutional investors from across the globe strongly supported the PGIM fund. The fund will offer senior secured financing to middle market firms across North America, Europe, and Australia. Investors include insurance firms, pension funds, and sovereign wealth funds.

PGIM’s direct lending strategy aims to deliver risk-adjusted returns via a diversified portfolio. It focuses on directly originated senior loans to sponsored and non-sponsored companies. So far, PSLO II has already started deploying its capital. The fund boasts a strong investment pipeline and diversified portfolio.

Matt Harvey, Head of Middle Market Direct Lending at PGIM, emphasized diversification. He stated, “Sponsor-backed deals dominate now, but they don’t cover the whole market.” Harvey explained that in the U.S. alone, only 10,000 of 200,000 middle market companies are private equity-owned. Over 90% remain non-sponsored. He added, “Capturing both sponsor and non-sponsor channels is a unique advantage for PGIM and is investor-validated.”

Harvey also highlighted origination capability as key in private credit. He noted that direct origination builds proprietary deal flow and underwriting strength. PGIM has long experience in private credit, managing direct lending strategies since 2000. Its strategies cover the lower to large-cap markets. The firm partners with Deerpath Capital for lower middle market investments. It serves high-net-worth and institutional clients in the middle market. In June 2025, PGIM merged its Fixed Income and Private Credit teams. This move created a global credit platform nearing $1 trillion. With this $4.2B direct lending fund, PGIM strengthens its presence in the private credit landscape and expands investor reach.

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News Source: Businesswire.com