Speaking of Alternatives

Mariusz Banasiak, CFA, a Managing Director and Head of Local Currency Rates and FX for PGIM Fixed Income’s Emerging Markets Debt Team discusses the opportunities and challenges of this rapidly changing field. Emerging market debt is highly volatile, influenced by macroeconomic, geopolitical, and local currency factors. This creates both significant risk and potential reward. Keshav and Mariusz discuss the factors that influence investments in this multifaceted debt class and forecast potential opportunities and challenges.   Subscribe to Speaking of Alternatives on your favourite podcast platform.   Key Takeaways: Experts Maximise the Potential of Emerging Market Debt Volatility. [3:11]Opportunities and Challenges of Emerging Market Debt. [4:49]Positive Structural Trends in Emerging Markets [9:24]Managing Risks in Geopolitics and the aftereffects of the 2024 Presidential Election. [11:50]How Will the U.S. Dollar Affect Currencies in Emerging Markets and Japan? [13:22]   *The views expressed herein are those of the speaker at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice, and should not be considered investment advice.   Find Out More About Alternative Investing: PGIM Private Alternativesrealestate.investorservices.emea@pgim.com@PGIM on X@PGIM on InstagramPGIM on LinkedIn   Shareables: “Tension between China and the U.S. is a major theme. It’s been driving certain segments of EM debt for years and will continue to do so. This is seen as a risk but it shouldn’t scare people away.” — Mariusz Banasiak, Managing Director at PGIM Fixed Income #alternativeinvesting #PGIMalts “EM Central Banks cutting cycles are likely to gain momentum because inflation is well behaved.” — Mariusz Banasiak, Managing Director at PGIM Fixed Income #PGIMPodcasts #alternativeinvesting “We see very little risk of a renewed default cycle in Emerging Markets.” — Mariusz Banasiak, Managing Director at PGIM Fixed Income #PGIMalts #institutionalinvesting “EM share of the global GDP pie continues to grow as these economies become more diversified.” — Mariusz Banasiak, Managing Director at PGIM Fixed Income #PGIMalts #investing

Jim Footh, Managing Director, Data Center Investments & Portfolio Management at PGIM real estate, discusses the fast-growing investment potential of data centers, and how AI is further fueling this trend. Data centers are one of the fastest-growing areas within real estate investing. Growth is driven by the increasing digitization of our lives and the evolution of AI. Demand for data center builds has various considerations including location, sustainable power, and tenant segments. Keshav and Jim explore the opportunities inherent in this exponential increase in the need for power.   Subscribe to Speaking of Alternatives on your favourite podcast platform.   Key Takeaways: Data Center Sector Supply-Demand Imbalance [2:27]Data Center Location Depends on Applications and Workload [3:31]Data Center Tenant Segments [9:21]Integrating Sustainable Power [13:29]Opportunities in Tier 1 and Tier 2 Data Center Markets [15:37]Data Center Investment Considerations [20:23]   *The views expressed herein are those of the speaker at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice, and should not be considered investment advice.    Find Out More About Alternative Investing: PGIM Private Alternativesrealestate.investorservices.emea@pgim.com@PGIM on X@PGIM on InstagramPGIM on LinkedIn   Shareables: “AI is going to push construction of data centers into more remote areas but there’s still demand for data centers in those close in-city locations.” — Jim Footh, Managing Director of Global Data Center Investments at PGIM Real Estate #alternativeinvesting #realestateinvesting“They are complex investments for sophisticated investors that want to come on this journey as demand for data centers continues to evolve.” — Jim Footh, Managing Director of Global Data Center Investments at PGIM Real Estate #PGIMPodcasts #alternativeinvesting“The industry is focused on creating and evolving designs to make data centers more efficient so there is less wasted power.” — Keshav Rajagopalan, Managing Director, Head of Product & Strategy, PGIM Multi-Asset Solutions #PGIMalts #investing“In the face of the unprecedented demand for data centers, supply will continue to be a challenge.” — Keshav Rajagopalan, Managing Director, Head of Product & Strategy, PGIM Multi-Asset Solutions #PGIMalts #institutionalinvesting

Soultana Reigle, Head of U.S. Equity and Senior Portfolio Manager for U.S. Value-Add Strategies at PGIM Real Estate, traverses one of the great societal challenges in the U.S. and globally, the affordable housing market and its complex economic challenges. This conversation traverses one of the great societal challenges in the U.S. and globally; the affordable housing market. Identifying locations and building quality affordable housing is essential for those attracted to long-term investment returns while fulfilling a vital need for communities and society. Discover the benefits a skilled market analysis can bring to institutional investors.  Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways:  ● The Affordability Gap in Housing [2:23]  ● Repairing the Disrupted Real Estate Market [4:07]  ● Creative Investment Opportunities in Affordable Housing [6:13] ● Alternative Investments in Affordable Housing [10:34] ● Regional Local Market Experts Equal Success [14:03]  ● Public-Private Sector Collaboration Insights [18:07]   *The views expressed herein are those of the speaker at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice, and should not be considered investment advice.    Find Out More About Alternative Investing:  PGIM Private Alternatives  realestate.investorservices.emea@pgim.com  @PGIM on X  @PGIM on Instagram  PGIM on LinkedIn    Shareables:  “The affordability gap between owning a home and renting a home is the widest it has ever been.” — Soultana Reigle, Head of U.S. Equity at PGIM Real Estate #investing #realestateinvesting  “Fortunately, the fundamentals across the housing space are relatively good. So, once we get a thaw in the capital markets environment, housing should be poised for a very good few years ahead.” — Soultana Reigle, Head of U.S. Equity at PGIM Real Estate #PGIMPodcasts #alternativeinvesting  “The structural lack of housing supply and inability to meet the needs of a growing and changing demographic has been a retractable issue for well over a decade.” — Eric Adler, President & CEO of PGIM Private Alternatives #PGIMalts #alternativeinvesting  “Collaboration between the public and private sector should bear more fruit in years to come. This is a very attractive space for investors.” — Eric Adler, President & CEO of PGIM Private Alternatives #PGIMalts #institutionalinvesting

Jamie Shen, Managing Director and Head of Agriculture at PGIM Real Estate, explores the transforming landscape of agricultural debt and equity, examine the mitigation of climate risk for investors and explore the balance of labor and mechanization in agriculture.   This conversation provides the foundational principles at the core of agricultural investing and the challenges and opportunities available of an asset class that institutional investors are increasingly recognising as a long-term income producer with inflation-protected characteristics. Increase your knowledge of how the United States is mitigating climate risk and the income opportunities of renewable energy in the agricultural sector.   Subscribe to Speaking of Alternatives on your favourite podcast platform.   Key Takeaways:   How the U.S. Mitigates Climate Risk for Institutional Investors [2:59] Opportunities and Challenges of Agricultural Investing [5:10] Row Crop Versus Permanent Crop Performance [9:02] Balancing Labour and Mechanisation in Agriculture [14:35] Significant Takeaways about Agricultural Investing [18:08]   Find Out More About Alternative Investing:   PGIM Private Alternatives realestate.investorservices.emea@pgim.com @PGIM on X @PGIM on Instagram PGIM on LinkedIn   Shareables:   “Land that can sustainably grow food will become more and more valuable over the long run.” — Jamie Shen, Managing Director and Head of Agriculture at PGIM Real Estate #investing #alternativeinvesting   “Our investment strategy continues to focus on foods that can provide people with a healthier way of life.” — Jamie Shen, Managing Director and Head of Agriculture at PGIM Real Estate #agriculturalinvesting #alternativeinvesting   “A lot of investors think about agriculture for the long term as an inflation hedge and as a really good source of income.” — Eric Adler, President & CEO of PGIM Private Alternatives #PGIMalts #alternativeinvesting   “When we are investing in properties and assets that require a lot of labour today we are making sure the ones we are investing in are designed today for the future of mechanisation.” — Jamie Shen, Managing Director and Head of Agriculture at PGIM Real Estate #PGIMalts #institutionalinvesting

Matthew Harvey, Head of the Direct Lending business for PGIM Private Capital, highlights the importance of experienced asset managers in navigating the direct lending landscape and sheds light on the steady increase of capital flowing into this evolving credit market. Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways:  ● Opportunities in Direct Lending [2:19]  ● Asset Managers with Direct Lending Experience [5:02] ● Speed of Capital Deployment [9:17]  ● Ever-Evolving Forms of Capital [12:38]  ● Challenges of Private Debt Illiquidity [13:58]    Find Out More About Alternative Investing:  PGIM Private Alternatives  realestate.investorservices.emea@pgim.com  @PGIM on X @PGIM on Instagram  PGIM on LinkedIn  Shareables:  “As more capital is raised and companies become more educated on direct lending their private credit as a legitimate alternative, that market only continues to expand.” — Matthew Harvey, Head of the Direct Lending business for PGIM Private Capital #investing #alternativeinvesting  “A lot of value is created in how you manage the portfolio and how you deal with stress in the portfolio.” — Matthew Harvey, Head of the Direct Lending business for PGIM Private Capital #investing #valueadd  “Supply is overall increasing because more and more issuers are coming to this market.” — Matthew Harvey, Head of the Direct Lending business for PGIM Private Capital #PGIMalts #alternativeinvesting  “Do you have the depths of portfolio management teams to engage with these issuers and actively manage the portfolio?” — Matthew Harvey, Head of the Direct Lending business for PGIM Private Capital #PGIMalts #institutionalinvesting

Dr. Marco Wulff, CEO, Managing Partner, and co-founder of Montana Capital Partners AG, discusses the advantages and challenges of the private equity secondary market, global prospects, and the recent explosive growth of this private investment strategy.   Subscribe to Speaking of Alternatives on your favorite podcast platform.   Key Takeaways:   Diverse Opportunities of Secondaries [2:58] Liquidity in Private-Equity Secondaries [5:33] Advantages and Risks of Alternatives [7:03] U.S., European, and Asia Market Potential [10:05] Three Factors Affect Leverage Strategies [13:33]   Find Out More About Alternative Investing:   PGIM Private Alternatives realestate.investorservices.emea@pgim.com @PGIM on X @PGIM on Instagram PGIM on LinkedIn   Shareables:   “If you look at the two main actors in the private equity industries on the limited partner side, the lack of distribution leads to difficulties and the refinancing of the commitment they already made.” — Dr. Marco Wulff, CEO, Managing Partner, and co-founder of Montana Capital Partners AG #investing   “Because you buy assets, in our case, that are four to seven years old, you are much further down the road in the lifetime of the fund. So, the distributions are coming on much earlier.” — Dr. Marco Wulff, CEO, Managing Partner, and co-founder of Montana Capital Partners AG #valueadd   “You have to make sure that you get compensated for the additional political risks, the forex risk, and manager risk with a higher return.” — Dr. Marco Wulff, CEO, Managing Partner, and co-founder of Montana Capital Partners AG #institutionalinvesting   “The secondary market is really reinventing itself and innovating quite consistently. I think there is very healthy growth coming in 2024-25.” — Dr. Marco Wulff, CEO, Managing Partner, and co-founder of Montana Capital Partners AG #alternativeinvesting #PGIMalts

Sebastiano Ferrante, Head of Europe at PGIM Real Estate, discusses Europe’s alternative investment landscape, prevailing market dynamics currently influencing institutional investing, and the risk-reward trade-off in value-add equity real estate investing.   Subscribe to Speaking of Alternatives on your favorite podcast platform.   Key Takeaways:   The Art of Being a Great Real Estate Investor [1:49] Current Investor Hot Spots [4:20] Europe’s Compelling Real Estate Market [7:54] Investors’ Questions Answered [10:25] Top Three Investor Insights [16:21] Find Out More About Alternative Investing:   PGIM Private Alternatives realestate.investorservices.emea@pgim.com @PGIM on X @PGIM on Instagram PGIM on LinkedIn   Shareables:   “Interest rates will play a smaller role, and the bifurcation of the market will be bigger between winning strategies and losing strategies.” — Sebastiano Ferrante, Head of Europe, PGIM Real Estate #investing   “One other aspect about European markets, and this is the illiquidity we're seeing on the classical bank financing market, and this is a huge opportunity in private credit, private debt and specifically in real estate in Europe.” — Sebastiano Ferrante, Head of Europe, PGIM Real Estate #valueadd   “Retail is becoming a brand in itself. It is something that people identify with.” — Sebastiano Ferrante, Head of Europe, PGIM Real Estate #alternativeinvesting   “Retail still remains officially one of the main food groups in the world of real estate.” — Eric Adler, President & CEO of PGIM Private Alternatives #institutionalinvesting

Speaking of Alternatives is an original podcast from PGIM, providing a global perspective on the rich and diverse landscape of alternative investments. Each month, guests join host Eric Adler, President and CEO of PGIM Private Alternatives, to cut through the complexities and get to the heart of alternative investing. Together they look beyond the headlines and scrutinise the latest trends and strategies driving this important asset class.