By Megan Cheah

PGIM is expanding into the secondary market for private credit, where it plans to deploy up to $1 billion over the next two years.

The asset management arm of insurer Prudential PLC said Thursday that is it planning a new platform focused on opportunities in direct lending and "opportunistic credit areas" such as mezzanine and special situations, targeting deals across the U.S. and Europe.

The private credit secondaries market, which refers to buying and selling ownerships of largely illiquid private credit vehicles before maturity, is likely to exceed $50 billion in the next two to three years, PGIM said, citing independent investment banking firm Evercore.

PGIM wants to meet growing demand for more liquidity in private credit and reflects what PGIM believes is a "natural evolution" of its middle-market direct lending business and its private equity secondaries, the company said.

PGIM's private credit secondaries platform will be led by Alex Stuart, managing director and head of private credit secondaries, and Maelle Reichenbach, senior principal of private credit secondaries. The team will also consist of professionals from PGIM's private credit business and Montana Capital Partners, PGIM's private-equity secondaries business.

PGIM had $265 billion in assets under management in private credit and secondaries as of Sept. 30.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

January 21, 2026 22:11 ET (03:11 GMT)

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