PGIM has announced the final close of PGIM Senior Loan Opportunities II, L.P. (PSLO II) with over $2.4 billion in available capital, marking the successful expansion of its middle market direct lending platform. PSLO II is the second commingled private credit fund in PGIM’s direct lending series that is open to unaffiliated institutional investors. 

The fund will provide senior secured financing to middle market companies across North America, Europe, and Australia, with a focus on delivering attractive risk-adjusted returns through a diversified portfolio of directly originated senior loans. The fund targets both private equity-backed (sponsored) and independent (non-sponsored) borrowers—offering investors access to a broader and less saturated segment of the private credit landscape. 

“In the U.S. alone, there are around 200,000 middle market companies, and only about 10,000 are private equity owned,” said Matt Harvey, head of middle market direct lending at PGIM Private Capital. “That means more than 90% of the addressable market remains non-sponsored. Our ability to capture both sponsored and non-sponsored channels is a differentiator and has been validated by our investors.” 

The capital raise attracted commitments from a diverse base of global institutional investors, including insurance companies, pension funds, and sovereign wealth funds. The fund has already begun deploying capital and has built a robust pipeline of opportunities. 

PSLO II is part of PGIM’s broader direct lending ecosystem, which includes a range of credit strategies spanning the lower middle market—through its partnership with Deerpath Capital—to large-cap corporate lending. The close follows PGIM’s June 2025 announcement that it would integrate its Fixed Income and Private Credit divisions, forming a global private fixed income platform managing nearly $1 trillion across public and private credit markets.