PGIM Private Capital: A Beacon of Stability in Uncertain Times

In the ever-evolving landscape of global finance, PGIM Private Capital has emerged as a steadfast provider of senior debt and junior capital, navigating the complexities of the market with a deft touch. The company recently announced that it has provided a staggering $14.9 billion in senior debt and junior capital to more than 238 middle-market companies and projects globally in 2024. This remarkable feat is a testament to PGIM Private Capital's unwavering commitment to its clients and the broader investment community.



PGIM Private Capital's success can be attributed to several key factors that have enabled it to maintain a strong pace of originations even in the face of economic uncertainty. One of the primary drivers is the company's relationship-based approach, which has fostered long-standing relationships with borrowers, leading to repeat business and a steady pipeline of deals. This approach has been particularly beneficial in an uncertain economic environment, as companies seek the stability and certainty of execution that PGIM Private Capital offers.

Another critical factor is PGIM Private Capital's diversified portfolio, which spans various asset classes, sectors, and geographies. This diversification helps mitigate risks associated with economic uncertainty and provides exposure to both operational businesses and hard-asset backed investments. For instance, in 2024, PGIM Private Capital originated $10.1 billion in Corporate investments across North America, the U.K., Europe, Latin America, and Australia, as well as $4.7 billion in real assets sectors, including energy, power, infrastructure, credit tenant lease financing, and structured credit.

PGIM Private Capital's cross-border capabilities have also been a significant advantage, allowing the company to tap into global opportunities and hedge against regional economic cycles. This was evident in 2024, as PGIM Private Capital closed several transactions with international companies, such as the financing of Hudson Valley Parking Trust's acquisition of ICON Parking, the largest parking operator in New York City, and the first U.S. Private Placement transaction with Rubis Energie, a global leader in energy and bitumen distribution operating across 40 countries in Europe, Africa, and the Caribbean.

PGIM Private Capital's versatility in deal sourcing has also been a competitive advantage, as the company's direct lending platform has shown the ability to operate across different deal channels, expanding its potential opportunity set. This platform has reliably deployed capital, cultivating a variety of sponsored and non-sponsored relationships, and has maintained strong origination activity globally.

PGIM Private Capital's patient and disciplined approach to risk management has also been a key factor in its success. The company's balanced allocation between investment-grade and below-investment-grade investments, as well as its commitment to maintaining portfolio quality while participating in higher-yielding opportunities, has enabled it to navigate the market with a steady hand.

In conclusion, PGIM Private Capital's strategic allocation between investment-grade and below-investment-grade investments, geographic and sector diversification, and patient approach to risk management have all contributed to its competitive advantage in the face of economic uncertainty. As the global investment management business of Prudential Financial, Inc., PGIM Private Capital is well-positioned to continue its strong pace of originations and provide valuable investment solutions to its clients in the years to come.