PGIM's Simmons Executive Hunt Says 'Big Shuffle' Ahead for Private Credit Markets

(Bloomberg) - The private-credit market is in for a "reshuffle" as investors set higher standards for manager selection, said David Hunt, PGIM's chief executive officer.

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"Institutional investors are being more selective," Hunt said Tuesday on Bloomberg Telegraph." We're seeing fewer and fewer managers raising more money.

He said investors are increasingly looking for credit managers with longer track records and more market experience.

"Compared to three years ago," Hunt says, "the ability to raise capital for just opening a new store is not what it used to be." There will be some turbulence, but that's not a bad thing.

PGIM believes that institutional and retail investors will continue to invest in the private markets, particularly in private credit. Hunter believes that the direct lending and asset finance markets will continue to grow as banks rein in lending to meet tighter capital requirements.

"The good news is that private credit - particularly direct lending - is actually coming to maturity," Hunt said.

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