– PGIM has closed PGIM Senior Loan Opportunities II, L.P. (PSLO II) with over $4.2 billion in available capital commitments.
– PSLO II is the second commingled private credit fund open to unaffiliated investors in PGIM’s middle market direct lending series.
– The fund is one of the largest middle market private credit fundraises in 2025 to date.
– Investor support came from a diverse global base, including insurance companies, pension funds, and sovereign wealth funds.
– PSLO II will provide senior secured financing to middle market companies across North America, Europe, and Australia.
– Strategy focuses on attractive risk-adjusted returns via diversified senior loans to both sponsored and non-sponsored issuers.
– PGIM has already begun deploying capital, with a robust pipeline and a well-developed portfolio.
– Matthew Harvey, head of middle market direct lending, emphasized that non-sponsored deals are essential for achieving diversification and deployment targets.
– Only about 10,000 out of 200,000 U.S. middle market companies are private equity owned, leaving a large non-sponsored opportunity set.
– PGIM’s ability to originate both sponsored and non-sponsored loans is a key differentiator.
– Emphasis on direct bilateral origination and proprietary deal flow as key advantages in private credit.
– PGIM has managed direct lending strategies since 2000, with offerings across lower middle market, middle market, and large-cap segments.
– In June 2025, PGIM announced it would merge its Fixed Income and Private Credit businesses, forming a nearly $1 trillion credit platform across public and private markets.
