PGIM launches first private credit CIT to broaden defined contribution market access
PGIM launches first private credit CIT to broaden defined contribution market access
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collective investment trustfinancial
A collective investment trust is a pooled investment vehicle run by a bank or trust company that gathers money from multiple retirement plans and invests it as a single fund, similar to a neighborhood carpool combining individual trips into one vehicle to save cost. Investors care because pooling lowers fees and simplifies access to diversified strategies for retirement accounts, but these trusts are regulated differently and may have less disclosure than mutual funds.
defined contributionfinancial
A defined contribution plan is a retirement savings arrangement where the amount put into an employee’s account is fixed by a formula or contribution schedule, but the final payout depends on how the invested money performs. Think of it as a personal savings pot that grows or shrinks with market returns; for investors, it matters because companies offering these plans have more predictable short-term costs but shift long-term retirement risk onto employees, affecting corporate liabilities, cash flow and workforce stability.
target date fundsfinancial
A target date fund is an investment fund that automatically shifts its mix of stocks, bonds and cash to become more conservative as it nears a specified year, often the year an investor plans to retire. It matters to investors because it offers a single, hands-off way to align risk with a time-based goal—like a thermostat that gradually lowers risk as the target date approaches—reducing the need for active portfolio management.
private placementfinancial
A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.
asset-based financefinancial
Asset-based finance is a type of lending where a company borrows money using tangible assets—such as accounts receivable (invoices), inventory, or equipment—as security, similar to using a valuable item as collateral at a pawn shop. Investors care because it affects a firm's access to cash and its risk profile: more asset-backed borrowing can provide quick funding but also ties borrowing limits to the value and liquidity of those assets.
private marketsfinancial
Private markets are places where investors buy and sell ownership in companies, debt, or assets that are not listed on public stock exchanges — think direct stakes in a start-up, private company, real estate project, or loan. They matter to investors because these deals can offer higher potential returns and diversification but come with less transparency, limited ability to sell quickly, and more uncertainty, like owning a whole house versus trading shares of a real estate fund.
NEWARK, N.J.--(BUSINESS WIRE)--
PGIM, the $1.4 trillion global investment management business of Prudential Financial, Inc.*(NYSE: PRU) today announced the launch of its first private credit collective investment trust (CIT) for defined contribution (DC) retirement plans.
“With a long lineage in private credit and a trillion-dollar credit platform, PGIM is well positioned to deliver solutions that are leading-edge and purpose-built for the operational and liquidity requirements of the retirement channel.” -- John Vibert, Head of Credit, PGIM
The PGIM Investment Grade Private Credit Fund of the Prudential Trust Company Alternative Investments Collective Trust will be used within professionally managed retirement solutions such as target date funds, stable value funds and other white label or multimanager investment structures and is designed to provide DC plans with diversified exposure to private credit while supporting plan-level operational, liquidity and fiduciary considerations.
Trusteed and managed by the Prudential Trust Company, the CIT is subadvised by PGIM’s multi-sector credit team and provides exposure to a broad range of investment-grade private placement and investment-grade asset-based finance securities.
The multi-sector credit team is part of PGIM’s $1.2 trillion credit platform.* The group leverages the firm’s robust public and private markets expertise to develop innovative investment solutions for nascent markets, such as the DC channel.
“DC plan sponsors are increasingly looking for ways to diversify beyond traditional fixed income, but the structures available to them haven’t always kept pace with the opportunity set,” said John Vibert, head of Credit at PGIM. “With a long lineage in private credit and a trillion-dollar credit platform, PGIM is well positioned to deliver solutions that are leading-edge and purpose-built for the operational and liquidity requirements of the retirement channel.”
PGIM was among the first asset managers to bring private assets to the DC space when it launched a vehicle giving retirement plans access to private real estate investments over 20 years ago. The firm has operated in private credit for many decades and today manages $264 billion of private credit assets,* identifying opportunities through a large global sourcing network which drives differentiated origination with broad access to direct, agented, sponsored and non-sponsored channels.
“Private markets have long played an important role in institutional portfolios, but access within DC plans has historically been limited,” said Sara Shean, head of Institutional DC at PGIM. “This new collective investment trust reflects PGIM’s continued focus on expanding access to private credit through structures that align with the nuanced needs of DC plans while seeking to deliver attractive risk-adjusted outcomes for retirement savers.”
PGIM subadvises $57 billion in assets across over 55 CITs offered on the Prudential Trust Company and Great Gray trustee platforms.* The CIT is expected to be the first of several private markets solutions PGIM intends to launch tailored to DC plans as demand for diversified institutional investment capabilities continues to grow.
Professional investors and institutional audiences can learn more about PGIM’s growing suite of CIT offerings at pgim.com.
The Fund is offered solely to eligible institutional investors and is not available to the general public.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), with $1.4 trillion in assets under management.* PGIM offers clients deep expertise across public and private asset classes, delivering a diverse range of investment strategies and tailored solutions — including fixed income, equities, real estate and alternatives. With 1,500+ investment professionals across 40 offices in 20 countries, we serve retail and institutional clients worldwide. For more information visit pgim.com.
Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
*As of March 31, 2026.
Prudential Trust Company is a Pennsylvania-chartered, non-depository trust company and an indirect wholly owned subsidiary of PFI. Prudential Trust Company has engaged PGIM, Inc. and PGIM Limited to serve as investment advisors to the Fund, subject to the Prudential Trust Company’s ongoing supervision and control. The Fund is not a mutual fund and is not registered under the Investment Company Act of 1940, and units of the Fund are not registered under the Securities Act of 1933 or any other applicable securities laws. Participation in the Fund is subject to the Fund’s governing documents.
Investors should consider the investment objectives, risks, charges, and expenses of any pooled investment fund carefully before investing.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact a financial professional.
