Constructing Portfolios Across the Liquidity Spectrum

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.

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

04:51 Understanding Asset Liability Management (ALM)

05:41 Liquidity and Private Markets

07:08 ALM in Wealth Management

10:44 Private Credit and Insurers

11:31 Private Credit Flavors and Strategies

12:42 Origination and Credit Culture

14:32 Talent and Culture at PGIM

15:06 Private Credit's Role in the Economy

17:01 Borrowers Choosing Private Over Public Credit

18:36 Public and Private Credit Blurring Lines

19:00 Global Credit Capabilities

20:09 Fewer Manager Relationships in Private Markets

24:57 Challenges in Private Markets

27:02 Underwriting Discipline in Private Credit

27:34 Private Credit Market Growth

30:22 Global Opportunities in Private Credit

31:01 Future of Private Markets

31:30 Regulatory Framework and Governance

31:57 Educating Investors on Private Markets

33:06 Creating the Perfect Private Credit Portfolio

33:57 Diversification in Private Credit

34:36 Advisors' Role in Private Credit Investing

35:07 Wealth Channel Choices and Shelf Space

35:53 Farm to Table Analogy in Private Credit

37:32 Talent and Scale in Private Credit

38:54 Maintaining Culture in Large Firms

39:33 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.