PGIM: Europe and ME investors to ramp up private credit exposure

Institutional investors across Europe and the Middle East are planning to increase their exposure to private credit, according to a survey from asset manager PGIM.

The survey of 250 investors found that 44 per cent are planning to increase their allocation to the $1.7tn (£1.3tn) asset class over the next two years.

This was followed by private real estate debt at 42 per cent and sustainable equity at 40 per cent.

Read more: Moody’s: Private credit to hit $3tn by 2028

A majority of respondents at insurers and pension funds plan to maintain their current allocations, reflecting investment limits, according to the survey cited by Bloomberg.

Alternatives made up about 25 per cent of the respondents’ portfolios, with private credit accounting for 11 per cent of that allocation.

PGIM’s findings come after recent research from Schroders and BlackRock which similarly show increasing investor appetite for private debt. The sector has been booming in recent years, as investors look to diversify their portfolios away from public markets and access regular, high-yielding returns.