Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with an experienced asset allocator who has operated at the intersection of insurance and asset management throughout his career.
We sat down in Prudential’s Newark studio with  PGIM’s Head of Multi-Asset and Quantitative Solutions, Phil Waldeck. Phil is responsible for nearly $140B in AUM, where the business unit leverages PGIM’s deep public and private markets expertise for the purpose of developing customized portfolio solutions to meet insurer and other investors’ unique objectives.
Phil previously served as Chief Transformation Officer at Prudential, CEO of Prudential’s Workplace Solutions Group, and as president of Prudential’s retirement business, which comprised of $250B in assets. Phil was also the architect of Prudential’s pension risk transfer business, which he grew to over $170B.
Phil and I had a fascinating conversation about the intersections between insurance and asset management. We covered:
The evolution of how insurers allocate to private markets.
The importance of asset liability management.
How insurers are leveraging their balance sheet to invest in private markets and collaborate with alternative asset managers.
How insurance and asset management interact and the benefits of an integrated platform.
How PGIM’s $1T in public and private credit informs how they invest.
Why insurers are allocating to private credit.
Thanks Phil for sharing your perspectives and wisdom on insurance and private markets. We hope you enjoy.
Clip #1: There’s one hundred years of PGIM and Prudential making loans to private companies for long-term liabilities.
Clip #2: How is PGIM differentiated from their respected competitors?
Clip #3: How does PGIM think of the total portfolio and how it relates to private markets?
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Message from our Sponsor, Ultimus
01:23 Welcome to Alt Goes Mainstream Podcast
02:03 Guest Introduction: Phil Waldeck
03:29 Insurance and Asset Management Intersection
04:39 Understanding Asset Liability Management (ALM)
05:46 Liquidity and ALM in Private Markets
07:17 Adoption of Private Markets by Insurers
09:39 Private Credit and Public Credit
12:55 Building a Robust Origination Engine
14:53 Talent and Culture at PGIM
15:11 Impact of Private Credit on Main Street
17:18 Borrowers’ Perspective: Private vs Public Credit
19:08 Blurring Lines Between Public and Private Credit
19:32 Global Perspective on Credit Markets
20:44 Challenges and Opportunities in Private Credit
21:48 Importance of Long-Term Track Records
23:44 Partnerships in Asset Management
25:43 Private Markets in Insurance Portfolios
27:45 Underwriting Discipline in Private Credit
28:27 Growth and Scale in Private Credit
29:57 Future of Private Credit Markets
32:13 Balancing Liquidity and Regulation
32:56 Educating Investors on Private Markets
34:07 Creating the Perfect Private Credit Portfolio
35:00 Diversification in Private Credit
38:34 Talent Retention in Private Credit
40:04 Cultural Challenges in Scaling
40:27 Maintaining Quality in a Scaled Platform
40:47 Conclusion and Final Thoughts
The opinions expressed in this podcast are those of the author and do not reflect the views or opinions of PGIM, Inc. PGIM, Inc. is not responsible, endorses nor confirms its accuracy. All trademarks and other intellectual property used or displayed are the ownership of their respective owners. Unless noted otherwise in this podcast, PGIM, Inc. is not affiliated with, nor endorses any mentioned company or any linked third-party content.
PGIM and its affiliates may develop and publish research that is independent of, and different than, the recommendations contained herein. PGIM’s personnel other than the author(s), such as sales, marketing and trading personnel, may provide oral or written market commentary or ideas to PGIM’s clients or prospects or proprietary investment ideas that differ from the views expressed herein.
Editing and post-production work for this episode was provided by The Podcast Consultant.
