Investment firm PGIM completes $4.2 billion final closing for its direct lending fund focused on the middle market.
PGIM Senior Loan Opportunities II, L.P. (PSLO II), a middle market direct lending private credit fund, has successfully closed with over $4.2 billion in capital commitments, making it one of the largest funds of its kind in 2025.
The fund's investment strategy focuses on delivering attractive risk-adjusted returns through a diversified portfolio of directly originated senior secured loans to middle market companies across North America, Europe, and Australia. It targets both sponsored (private equity-owned) and non-sponsored (non-private equity-owned) borrowers, with a deliberate focus on the latter since more than 90% of the U.S. middle market remains non-sponsored.
PSLO II's diversification across industries and borrower profiles, along with its disciplined sourcing and underwriting driven by proprietary origination, sets it apart in a market characterized by information asymmetry. The fund's strategy has garnered institutional backing from insurance companies, pension funds, and sovereign wealth funds, reflecting investor confidence in its approach.
PGIM, the global asset management business of Prudential Financial, Inc., manages $1.39 trillion in assets under management. The firm offers a diversified suite of investment strategies and solutions across public and private asset classes. In June 2025, PGIM announced it would bring together its Fixed Income and Private Credit businesses under a global capability, creating an industry-leading public and private fixed income team with a credit platform of nearly $1 trillion.
For more information about PGIM, visit pgim.com. For more information about Prudential Financial, Inc., visit news.prudential.com. Guy Nicholls can be reached at 1 973 204 1648 or [email protected] for further queries regarding PSLO II.
[1] Pitchbook [2] National Center for the Middle Market [3] PGIM press release [4] PGIM website [5] PGIM Senior Loan Opportunities II, L.P. investor presentation
- Given PGIM's successful close of PSLO II with over $4.2 billion in capital commitments, the fund's strategy of investing in a diversified portfolio of senior secured loans across various industries and borrower profiles has garnered attention from institutions such as insurance companies, pension funds, and sovereign wealth funds, indicating a strong interest in cloud-based finance and investing in the business sector.
- As PGIM continues to expand its public and private fixed income team with a credit platform of nearly $1 trillion, investors looking for news on the latest investments in the middle market may find updates about PSLO II's focus on non-sponsored borrowers, and its commitment to delivering attractive risk-adjusted returns, on financial news platforms or through direct contact with Guy Nicholls at PGIM.
