Prices at your favorite lunch spot might be creeping up – and it’s not just due to the ingredients. These price increases can be an effective lens into the economy, reflecting the pressures shaping today’s business environment – including labor shortages, persistent inflation, and shifting consumer dynamics.

These forces are shaping the decisions businesses make every day – from managing costs to planning for growth in an environment where visibility is limited. As traditional lending tightens and the capital landscape evolves, private debt has become a flexible, responsive solution for companies looking to grow, recapitalize, or restructure, even as they navigate changing economic factors.  

What We’re Seeing Impacting Businesses

• Labor Costs & Scarcity – wages are rising, and skilled talent is harder to find – affecting everything from margins to delivery timelines.  
• Unpredictable Input Costs – volatility in raw materials and transportation adds strain to financial forecasting and pricing models.
• Interest rate pressure – the cost of traditional credit continues to rise, limiting access to growth capital just when agility matters most.
• Bank pullback – many regional and national banks are tightening credit criteria, leaving middle market borrowers underserved.  
• Tariffs and Trade Policy - evolving geopolitical dynamics and tariffs are impacting supply chains and sourcing strategies, especially for globally connected businesses.

How PGIM Private Capital Can Help

For over 100 years, businesses have relied on our flexible, non-dilutive capital solutions tailored to your business model and growth goals. Understanding the complexity of your business allows us to structure deals that traditional banks can’t (or won’t) offer, allowing our partners to gain value from:

• Our deep experience with middle market businesses across sectors.
• Direct access to our team, known for building close and enduring local partnerships.
• Custom solutions: acquisition financing, growth capital, refinancings and more.
• 15 offices worldwide with deep expertise and understanding of local markets.  
• Our ability to finance a wide range of companies and sponsors, ranging from fixed-rate private placements, floating-rate leveraged loans, to mezzanine financing

Let’s Talk Strategy

Whether you’re exploring financing options for the first time or reassessing your current structure, we’re here to learn more about your business and future plans.

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