PGIM, the $1.4 trillion investment management business of Prudential Financial Inc. (NYSE: PRU), announced the launch of its first private credit collective investment trust for defined contribution retirement plans.

The PGIM Investment Grade Private Credit Fund of the Prudential Trust Company Alternative Investments Collective Trust will be used within target date funds, stable value funds and other investment structures. The fund aims to provide retirement plans with exposure to private credit while addressing operational and liquidity requirements.

The Prudential Trust Company serves as trustee and manager of the CIT, which is subadvised by PGIM's multi-sector credit team. The fund provides exposure to investment-grade private placement and asset-based finance securities.

"DC plan sponsors are increasingly looking for ways to diversify beyond traditional fixed income, but the structures available to them haven't always kept pace with the opportunity set," said John Vibert, head of Credit at PGIM.

PGIM manages $264 billion in private credit assets and operates a $1.2 trillion credit platform. The company previously introduced private real estate investments to retirement plans over 20 years ago.

Sara Shean, head of Institutional DC at PGIM, noted that private markets access within defined contribution plans has been historically limited. The new collective investment trust addresses the specific needs of retirement plans while seeking to deliver outcomes for retirement savers.

PGIM currently subadvises $57 billion in assets across over 55 CITs on the Prudential Trust Company and Great Gray trustee platforms. The company expects this fund to be the first of several private markets solutions designed for defined contribution plans.

The fund is available solely to eligible institutional investors and is not offered to the general public, according to the company's statement.