Prudential Global Investment Management (PGIM) is merging its public fixed-income and private-credit teams to form a unit with nearly $1tn in assets, reported Bloomberg, citing sources.
This move is part of new CEO Jacques Chappuis’s strategy to enhance cross-selling efforts, as investors look to consolidate their money management relationships.
PGIM currently manages $862bn in public fixed-income assets and $110bn in private credit.
The newly merged entity will be led by John Vibert, who previously oversaw fixed income.
Matt Douglass will head the private-credit arm and report to Vibert.
PGIM has not publicly announced these changes, and spokespeople declined to comment.
Chappuis, who consulted with managers to develop this strategy, aims to strengthen PGIM’s private-credit practice and compete with major Wall Street alternative asset managers.
This is vital as PGIM’s parent, Prudential Financial, faces competition in life insurance from firms such as Apollo Global Management and its Athene insurance arm.
The restructuring also seeks to eliminate redundancies between previously independent teams, which were seen as barriers to growth.
PGIM plans to merge support functions and consolidate its institutional sales teams under Brad Blalock and Mark Chamieh.
Additionally, PGIM is integrating its multi-asset and quantitative solutions capabilities, with Phil Waldeck leading the team.
Linda Gibson, head of the quantitative solutions team, is expected to leave by year-end.
Job cuts are anticipated throughout the year, the sources said.
COO Taimur Hyat is also expected to depart soon, coinciding with former CEO David Hunt stepping down as PGIM chairman.
PGIM operates in over 40 offices across 19 countries, managing $1.39tn in assets for retail and institutional clients globally.
Recently, PGIM opened a new office in Jeonju, South Korea, bolstering its partnership with South Korea’s National Pension Service (NPS), a pension fund with over $800bn in assets.
PGIM’s relationship with NPS spans private and public asset classes, managing global investment mandates for nearly 15 years.
The new office aims to enhance collaboration with Jeonju-headquartered NPS, support its global investment strategies, and contribute to Jeonju’s development as a financial centre in South Korea.
“PGIM merges public fixed-income and private-credit teams, creating $1tn unit ” was originally created and published by Private Banker International, a GlobalData owned brand.
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