PGIM explains how private markets are reshaping institutional investing across credit, equity, and real assets. Private capital is now over $12 trillion, and the paper argues that scale is changing deal structures, liquidity expectations, and portfolio construction. A key tension is that growth creates opportunity, but also raises concerns around leverage, transparency, and hidden correlations.
The New Dynamics of Private Markets
PGIM
Research
52 Pages
Key Takeaways
Blurring boundaries: Public and private exposures overlap more, so investors should assess risk across the full capital stack.
Credit market shift: Bank pullbacks keep expanding private credit, but underwriting discipline matters more as cycles turn.
Governance and liquidity: Secondaries, continuation funds, and subscription lines add flexibility, but can create misaligned incentives.
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