PGIM, LGT Capital Partners and Tree Line Capital close $680M private credit continuation vehicle

NEWARK, N.J., October 28, 2026 - PGIM, the $1.5 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU) and LGT Capital Partners, the US$120 billion global specialist in alternative investing, have acted as a co-lead investors in a US$680 million continuation vehicle managed by Tree Line Capital Partners ("Tree Line"), a San Francisco-based direct lender to the US lower-middle market.

The continuation vehicle provides existing investors across a number of Tree Line direct lending funds with a liquidity option while enabling Tree Line to continue managing a diversified portfolio of private credit investments. The continuation vehicle acquired a seasoned, high-quality portfolio primarily comprising senior secured, first-lien loans to more than 60 U.S. lower middle market companies across a broad range of industries, supported by a diverse group of private equity sponsors.

The transaction follows PGIM's announcement earlier this year that it was expanding into private credit secondaries, with plans to deploy up to $1 billion over two years into the asset class. That initiative focuses on GP- and LP-led opportunities across direct lending and opportunistic private credit, with a particular emphasis on middle-market transactions in the U.S. and Europe.

The deal reflects PGIM's private credit secondaries differentiated focus on the middle market, where it leverages its large credit platform, extensive market knowledge, and broad relationship network to source compelling transactions and underwrite them on a borrower-by-borrower basis.

Alex Stuart, Head of Private Credit Secondaries at PGIM comments: "As the private credit secondaries market grows and evolves, we are seeing continuation vehicle solutions gain traction across a broader range of portfolio sizes, including mid- and small-cap investments. The market is already recognising that success relies on combining deep credit asset class expertise with a proven secondaries track record - that's exactly the approach we bring, and the reason we see real opportunity ahead. The size of this transaction demonstrates that PGIM can lead complex, large-scale secondary deals in precisely the segment where our decades of middle-market experience count the most. We're looking forward to partnering with Tree Line in a transaction that showcases what our platform was built to do."

The transaction was co-led by LGT Capital Partners, which has invested in credit secondaries since 2009. As an early mover in the market, the firm combines dedicated credit secondaries expertise with the scale, relationships, and underwriting capabilities of its global private markets platform. LGT Capital Partners is a long-standing investor in private credit, with investments spanning direct and secondary transactions as well as significant annual primary commitments across a broad range of private credit strategies.

Felix Janssen, Partner and Co-Head of Private Credit Solutions at LGT Capital Partners, comments: "We are pleased to partner with Tree Line on this transaction, which provides exposure to a diversified portfolio of high-quality senior secured loans and demonstrates the value that experienced secondaries investors can bring to private credit managers and their limited partners. Having invested in credit secondaries since 2009, LGT Capital Partners combines an established secondaries track record with deep credit underwriting capabilities, allowing us to evaluate diverse portfolios credit-by-credit, and structure solutions at scale. We believe this transaction demonstrates the strength of that approach and our ability to serve as a strategic capital partner in large-scale credit secondary transactions. Credit secondaries have become an increasingly important tool for managers and investors, and we see a deep and growing universe of opportunities. Our credit secondaries business benefits from LGT Capital Partners' global private markets platform, through which we track more than 35,000 private companies and over 800 credit funds and maintain relationships with more than 800 private equity sponsors."

Co-Managing Partners at Tree Line Tom Quimby and Jon Schroeder comments: "We are very excited to partner with PGIM and LGT Capital Partners on this transaction. As a leading lower middle-market direct lender, the transaction underscores our ability to work with blue-chip partners like PGIM and LGT Capital Partners and deliver attractive capital solutions to our investors. The result of the transaction will contribute to Tree Line's ability to offer attractive financing solutions to lower middle-market borrowers and sponsors. The Tree Line team has built its platform on a relationship-based approach, and we are excited about our next chapter of growth."

Campbell Lutyens served as financial advisor on the transaction. Morgan, Lewis & Bockius acted as legal counsel for PGIM.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU) with $1.5 trillion in assets under management.* PGIM offers clients deep expertise across public and private asset classes, delivering a diverse range of investment strategies and tailored solutions - including fixed income, equities, real estate, and other retail investment vehicles. With 1,500+ investment professionals across 40 offices in 20 countries, we serve retail and institutional clients worldwide. For more information visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.

ABOUT LGT CAPITAL PARTNERS

LGT Capital Partners is a leading global specialist in alternative investing with over $120 billion in assets under management and more than 750 institutional clients in 50 countries. An international team of over 950 professionals is responsible for managing a wide range of investment programs focusing on private markets, multi-alternatives, and diversifying strategies, complemented by sustainable and impact strategies. Headquartered in Pfaeffikon (SZ), Switzerland, the firm has offices in San Francisco, New York, Dublin, London, Paris, The Hague, Luxembourg, Frankfurt am Main, Vaduz, Dubai, Beijing, Hong Kong, Tokyo, Singapore, and Sydney.

*As of June 30, 2026. Assets are rounded to the nearest full number.

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