PGIM, the investment management division of Prudential Financial, announced Tuesday it will merge its fixed income and private credit units to create a credit platform managing nearly $1 trillion in assets. The consolidation combines approximately $862 billion in public fixed-income assets with $110 billion in private credit holdings.
John Vibert, who has overseen PGIM's fixed income business, will lead the newly combined credit unit, while Matt Douglass will continue as head of private credit and report to Vibert. The merger represents one of the largest consolidations in the asset management industry this year.
The restructuring forms part of a broader organizational overhaul led by CEO Jacques Chappuis, who assumed the role in May after joining from Morgan Stanley Investment Management1. According to people familiar with the matter, Chappuis aims to bolster cross-selling efforts as investors increasingly seek to reduce the number of money managers they work with2.
"The changes are part of an overhaul the company has undertaken under CEO Jacques Chappuis to stay competitive in a rapidly evolving sector, as growing preference for comprehensive investment strategies fuels market share gains for larger asset managers," according to a company spokesperson34.
Bloomberg News first reported PGIM's organizational changes34.
PGIM is simultaneously consolidating its multi-asset and quantitative solutions capabilities under Phil Waldeck, who previously oversaw the firm's multi-asset business123. The moves reflect industry trends favoring larger, more comprehensive investment platforms.
The firm manages $1.39 trillion in total assets, making it one of the world's largest investment managers12. PGIM operates as the investment arm of Newark-based Prudential Financial, the insurance company.
Vibert's elevation caps a swift rise within PGIM's ranks. He joined the firm in 2014 as head of securitized products before becoming president of PGIM Fixed Income in 202212. He was appointed CEO of the fixed income unit in January 2024, succeeding Michael Lillard, who retired after nearly four decades with Prudential1.
Before joining PGIM, Vibert served as lead portfolio manager for BlackRock's mortgage credit portfolios and held senior positions at Credit Suisse and Morgan Stanley12.
The consolidation positions PGIM to compete more effectively against rivals like BlackRock and Vanguard in an industry where scale increasingly determines success.
