PGIM, the global asset management business of New York-listed Prudential Financial, has expanded into private credit secondaries, with plans to deploy up to US$1 billion over the next two years into the emerging asset class.

Private credit secondaries are transactions where investors buy and sell existing interests in private debt funds or individual loan portfolios. Unlike "primary" investments, where capital is committed to a newly formed fund to be lent out over time, secondaries involve purchasing stakes in portfolios that are already fully or partially deployed.  

The new platform is targeting a market where deal volume, according to a report from Evercore, is expected to exceed US$50 billion in the next two to three years.

It will focus on sourcing opportunities in direct lending as well as in opportunistic credit areas such as mezzanine and special situations, targeting both GP- and LP-led deals across the United States and Europe with a particular focus on middle-market transactions.

The firm manages US$265 billion in assets across private credit and secondaries as of September 30 2025.

Leading this initiative are Alex Stuart, managing director and head of private credit secondaries, and Maelle Reichenbach, senior principal of private credit secondaries. Supporting them are a team of seasoned investment professionals from PGIM’s private credit business and Montana Capital Partners ( MCP ), the firm’s private equity secondaries business.

“Private credit has evolved significantly in the half century that we’ve been operating in the asset class. The emergence of secondaries is a natural stage in that evolution,” says Matt Douglass, head of private credit at PGIM. “This expansion reflects our commitment to meeting the growing demand for innovative private credit solutions beyond primary markets. Our deep understanding of issuers and GPs across the middle-market positions puts us in a strong position to deliver on transactions in this space.”

MCP chief executive officer Stephan Wessel adds: “By combining PGIM’s breadth of private credit expertise with our team’s experience in secondaries, we believe we are well-positioned to navigate complex transactions and capitalize on emerging opportunities in this growing market.”