On November 1, PGIM filed a registration statement for a new perpetual life non-traded BDC: PGIM Private Credit Fund. PGIM, formerly known as Prudential Investment Management, has been expanding its alternative investment lineup in recent years. In this article we provide a preview of PGIM’s new NT BDC, and its alternative investment business strategy.
PGIM Private Credit Fund Strategy
According to its draft registration statement PGIM Private Credit fund will invest primarily in privately placed floating rate leveraged debt, including senior secured, first lien ,debt issuances in middle market companies primarily in the US. It will focus on middle market companies that the manager believes to be more differentiated and less competitive with the broader capital markets.
PGIM Private Credit Fund Share Classes and Fund Structure
PGIM’s non-traded BDC is doing a public offering and will have three share classes: S, D and I. The minimum initial investment for Class S and Class D shares will be $2,500. The minimum initial investment for Class I shares is $1,000,000. Class S and Class D shares will have up front sales charges and shareholder servicing fees, although the exact amount is not specified in the draft registration statement. The prospectus language describing the share class structure is very similar to other public perpetual life BDCs offered by major asset managers such as Oaktree Strategic Credit Fund.
The base management fee and incentive fee levels are also left blank in the draft prospectus. To access detailed a comprehensive dataset covering non-traded BDC fees sign up for a Pro Membership.
PGIM has approximately $1.3 trillion in assets under management, including $267 billion in alternative investment strategies. According to their website they have over 200 client relationships that have lasted over 20 years. In August 2022, PGIM launched the PGIM Private Real Estate Fund, a non-traded REIT/Tender Offer Fund hybrid.