PGIM, the asset management arm of Prudential Financial, plans to invest up to $1bn into private credit secondaries over the next two to three years. The strategy targets second-hand interests in direct lending, mezzanine finance, and special situations funds across the US and Europe, focusing on middle-market deals and both GP-led and LP-led transactions.

The initiative, led by Alex Stuart and Maelle Reichenbach, leverages PGIM’s broader private credit business and its Montana Capital Partners secondaries platform. This move aligns with a market expansion; Evercore estimates private credit secondaries volumes could exceed $50bn within two to three years, up from $6bn in 2023, as the underlying private credit market approaches $2tn in assets.

PGIM’s push follows a broader industry trend, with peers like Ares Management recently raising a $7.1bn fund for the strategy. For investors, this reflects a search for liquidity and defensive credit exposure in a higher-rate environment, signaling that secondaries are maturing into a core tool for large asset managers navigating private markets.