Prudential Financial's PGIM to Merge Units into $1 Trillion Credit Platform

Prudential Financial's PGIM is merging its units to create a $1 trillion credit platform. The move aims to strengthen its position in the market and increase its assets under management. The platform will provide a range of credit-related services, including lending, asset management, and advisory services. The merger is expected to expand PGIM's presence in the global credit market and provide new opportunities for growth.

Prudential Financial's investment management arm, PGIM, is consolidating its fixed income and private credit units to create a nearly $1 trillion credit platform. The move, announced on June 24, 2025, aims to strengthen PGIM's market position and boost its assets under management [1].

The new credit unit, led by John Vibert and Matt Douglass, will oversee fixed income and private credit, respectively. The company is also integrating its multi-asset and quantitative solutions capabilities under Phil Waldeck's leadership. This reorganization is part of CEO Jacques Chappuis' strategic overhaul to stay competitive in the rapidly evolving investment sector [1].

PGIM currently manages $1.39 trillion in assets, with the new credit platform expected to significantly expand this figure. The platform will offer a comprehensive range of credit-related services, including lending, asset management, and advisory services. This consolidation is anticipated to enhance PGIM's global credit market presence and open new growth opportunities [1].

Separately, PGIM's latest investment in Affirm Holdings, Inc. (AFRM) underscores its growing interest in the buy now, pay later (BNPL) space. PGIM has established a $3 billion revolving loan sale facility with Affirm, allowing it to purchase up to $500 million of Affirm's consumer loans over a 36-month period. This facility demonstrates PGIM's confidence in Affirm's loan portfolio and supports Affirm's scalability and financial stability [2].

The merger of PGIM's units and its investment in Affirm reflect the broader trend of large institutional investors embracing private credit arrangements with fintech companies. This shift is a positive signal for the BNPL industry, which is maturing into an asset class that appeals to mainstream credit investors [2].

References:
[1] Reuters. (2025, June 24). Prudential Financial's PGIM Merges Units to Form $1 Trillion Credit Platform. Retrieved from https://www.reuters.com/business/prudential-financials-pgim-merge-units-into-1-trillion-credit-platform-2025-06-24/
[2] The Globe and Mail. (2025, June 24). Will PGIM's $3B Facility Help Affirm Scale Its BNPL Offerings Fast? Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/PRU-N/pressreleases/32958923/will-pgim-s-3b-facility-help-affirm-scale-its-bnpl-offerings-fast/