(Bloomberg) -- PGIM Inc. is raising money for a private credit fund for larger direct-lending deals, people with knowledge of the matter said, positioning itself to compete with the likes of Blackstone Inc. and Ares Management Corp.
The global fund is expected to hold a first close before the end of the year, the people said, asking not to be identified as the plans are private. The product is capitalizing on the growing trend among larger companies to side-step publicly-traded markets in favor of the $1.7 trillion private credit industry.
Recent deals worth over a billion dollars for companies including UK investment platform Hargreaves Lansdown, US payments processor AffiniPay and French software publisher Orisha went to private debt markets.
A PGIM spokesperson declined to comment on the new fund raising.
The fresh PGIM plan adds another layer to the $1.3 trillion asset manager’s existing private debt strategies.
The New Jersey-based firm already has funds that provide loans to mid-market borrowers, with Ebitda between $10 million and $100 million. Last year, it bought Deerpath Capital, an investment manager which focuses on lower-mid market debt opportunities.
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