In this episode, Julie Segal speaks with Matt Harvey, head of direct lending at PGIM Private Capital, about how he evaluates opportunities as more companies tap both public and private credit markets for financing. The episode is a follow on to my podcast of July 17th, “AI’s Debt Boom Is Giving Credit Investors Rare Leverage. PGIM’s Greg Peters Says They Should Use It.”
Harvey explains why he views illiquidity as a hurdle rate rather than simply a premium, why PGIM integrated its private and public credit teams, and how demanding covenants, which are often misunderstood, allows lenders to actively manage risk after a loan is made.
The discussion also explores AI-driven concentration risk, why private credit deals, contrary to popular opinion, can often provide more information than public ones, and how all these shifts are changing the way credit portfolios are constructed.