INCOME BEYOND PUBLIC MARKETS​

Formerly the exclusive purview of institutions, access to private credit is expanding as commercial lending shifts from traditional banks to nonbank lenders. The $3 trillion asset class offers access to higher yield potential, structural safeguards, and an opportunity set insulated from public market volatility. No longer niche, private credit has become an integral allocation for investors seeking resilient and diversified sources of income.

Past performance does not guarantee future results. Investors cannot invest directly in an index. There can be no assurance any alternative asset classes will achieve their objectives or avoid significant losses.

Source: PGIM, AUM & staffing as of 31 March 2026.

1. Source: Morningstar, Cliffwater Direct Lending Index as of 12/31/2025. Representative indices: Bloomberg High Yield Corporate Index (High Yield Bonds), Bloomberg U.S. Aggregate Bond Index (U.S. Aggregate Bonds), Morningstar LSTA U.S. Leveraged Loan Index (Leveraged Loans/Broadly Syndicated Loans), 60% S&P 500 40% Blomberg U.S. Aggregate Bond Index (60/40), Cliffwater Direct Lending Index (Private Credit). Earliest common inception: Cliffwater Direct Lending Index “CDLI” inception/launch date 9/30/2015. Risk = standard deviation. Historical performance calculated using quarterly returns. The volatility and risk profile of the indices is likely materially different from that of an alternative fund (fund). The indices employ different investment guidelines / criteria than a fund and do not employ leverage; a fund’s holdings and the liquidity of such holdings may differ significantly from securities comprising the indices. The indices aren’t subject to fees / expenses. The indices’ performance has not been selected to represent an appropriate benchmark to compare to a fund’s performance, but rather is shown to allow for comparison to that of well-known and widely recognized indices.

2. Source: Cliffwater Direct Lending Index, as of 12/31/2025. Private Credit yield represented by Cliffwater Direct Lending Index 3-year takeout yield: source Cliffwater. Leveraged Loan yield represented by Morningstar LSTA US Leveraged Loan 100 yield to maturity: source Bloomberg. High Yield Bonds represented by Bloomberg High Yield Corporate Index yield to maturity: Source Bloomberg. Investors cannot invest directly in an index. Performance since earliest common inception 9/30/2015. Past performance does not guarantee future results. Cliffwater Direct Lending Index “CDLI” inception/launch date 9/30/2015. Inflation represented by Consumer Price Index (“Headline CPI”) for All Urban Consumers: All Items in U.S. City Average(CPIAUCSL): source St. Louis Federal Reserve.

3. For illustrative purposes only.

4. Source: Capital IQ as of February 2021 (latest available for all constituents).  

5. Apollo, “Many More Private Firms in Europe”. April 28, 2024. Original amounts reported in USD. Converted to EUR using the FX rate of 1 EUR: 1.0733 USD as of April 1, 2024. Source of FX rate: xe.com.

6. Target returns are not guaranteed. There is no guarantee objectives will be met.

Cliffwater Direct Lending Index (“CDLI”) seeks to measure the unlevered, gross of fees performance of U.S. middle market corporate loans, as represented by the underlying assets of Business Development Companies (“BDCs”), including both exchange-traded and unlisted BDCs, subject to certain Eligibility Criteria. The CDLI is an asset-weighted index that is calculated on a quarterly basis using financial statements and other information contained in the U.S. Securities and Exchange Commission (“SEC”) filings of all eligible BDCs. Bloomberg High Yield Corporate Index measures the performance of USD-denominated, non-investment grade, fixed rate, taxable corporate bonds, including corporate bonds, fixed-rate bullet, putable, and callable bonds, SEC Rule 144A securities, Original issue zeroes, Pay-in-kind (PIK) bonds, Fixed-rate and fixed to-floating capital securities. Bloomberg U.S. Aggregate Bond Index is a broad-based fixed-income index used by bond traders and the managers of mutual funds and exchange-traded funds (ETFs) as a benchmark to measure their relative performance. Morningstar LSTA U.S. Leveraged Loan Index is designed to deliver comprehensive, precise coverage of the US leveraged loan market. Underpinned by PitchBook | LCD data, the index brings transparency to the performance, activity, and key characteristics of the market. S&P 500 Index is a stock index that tracks the share prices of 500 of the largest public companies in the United States. Formally known as the Standard & Poor’s 500 Composite Stock Price Index and commonly referred to as the S&P 500, it’s one of the main tools used to follow the performance of U.S. stocks.

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.

View additional disclosure and important information on PGIM Global Private Credit SCA

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