Speaking of Alternatives

Dan Matviyenko, Healthcare Portfolio Manager at Jennison, offers insights and strategies on navigating the complex and dynamic landscape of healthcare equity investing. Laurie Chan, PGIM's U.S. Head of Alternative Solutions, and Daniel explore healthcare equity, focusing on macroeconomic forces, supply chain vulnerabilities due to trade tensions, the role of AI, and generating alpha from long and short positions. Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways: ● Healthcare Equity Investing offers a Spider Web of Opportunity. [3:04] ● The Role of Robotics and AI in Healthcare. [4:55] ● Trade tensions and Supply Chain Vulnerabilities. [8:16] ● Sizing Healthcare Sectors and Subsectors. [10:29] ● Alpha creation in Long and Short positions. [15:39] ● Three Key Insights for Healthcare Investors. [30:19] *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: "Robotic surgery will come to dominate the operating room." — Dan Matviyenko, Healthcare Portfolio Manager of Jennison #PGIMPodcasts #valueadd "[On tariffs] Healthcare can manage these increased costs much better than most companies out there." — Dan Matviyenko, Healthcare Portfolio Manager of Jennison #PGIMPodcasts #alternativeinvesting "The United States has two industries where we are the world leader. One is obviously tech, but the second one is healthcare." — Dan Matviyenko, Healthcare Portfolio Manager of Jennison #alternativeinvesting #investing #PGIMPodcasts "Subsector selection, size, and timing are very important to what we do." — Dan Matviyenko, Healthcare Portfolio Manager of Jennison #institutionalnvesting #valueadd "Sizing the investment at the right point in time is actually more important than picking the right investment." — Dan Matviyenko, Healthcare Portfolio Manager of Jennison #investing #alternativeinvesting "We look at our short book as an absolute return vehicle. It's not a hedge."— Dan Matviyenko, Healthcare Portfolio Manager of Jennison #investing #alternativeinvesting

Nandini Mongia is the Group Executive Chair and CEO of Prismic Life, and Mike Thompson is the Managing Director of Warburg Pincus and Head of Capital Solutions for Europe. Nandini has nearly three decades of financial and business experience supporting the insurance and reinsurance industry. Mike has 20 years of private investment experience. Keshav, Nandini, and Mike discuss the fundamental role of reinsurance in managing risk, offering financial protection, and enabling growth within the insurance industry. Moving forward, global trends indicate a growing interest and allocation towards alternative investments and private investments. Prismic Life Reinsurance, Ltd. is a global reinsurance platform in which Prudential Financial, Inc. (NYSE: PRU) (PFI) and Warburg Pincus are investors, as well as overseeing Prismic's long-term strategy through participation on its board of directors. Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways: ● Reinsurance Manages Risk, Offers Financial Protection, & Enables Growth. [3:27] ● Global Trends Point Towards Alternatives & Private Investments. [6:38] ● Prismic — A Strategic Reinsurance Partner. [8:56] ● Private Alternatives are Well-Suited for Insurance. [12:22] ● Regulation's Role in Asset Liability Management. [16:31] *This episode is only for listeners in the US. All investments involve risk, including the possible loss of capital. This podcast is for informational or educational purposes. The information is not intended as investment advice and is not a recommendation about managing or investing assets.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. Find Out More About Alternative Investing: PGIM Private Alternatives realestate.investorservices.emea@pgim.com @PGIM on X @PGIM on Instagram PGIM on LinkedIn Shareables: "When you look at global megatrends, the balance sheet of the insurance industry as it exists today is actually not sufficient to support what we call global unmet insurance and retirement income needs." — Nandini Mongia, Group Executive Chair & CEO of Prismic Life #PGIMPodcasts #alternativeinvesting "The average insurance company historically has had a relatively unsophisticated and un-optimized asset allocation and so are leaving investment spread on the table." — Mike Thompson, Managing Director of Warburg Pincus & Head of Capital Solutions for Europe #PGIMPodcasts #institutionalnvesting #valueadd "We think the global megatrends, unoptimized balance sheets, and the opportunity to provide capital into a market where public markets have struggled, we think they are compelling ingredients for an attractive investment." — Mike Thompson, Managing Director of Warburg Pincus & Head of Capital Solutions for Europe #investing #alternativeinvesting "The long-dated nature of the liabilities in insurance and in the manner in which they are not-runnable in the same way as deposits makes them much more able to take those illiquid assets and therefore earn that illiquid premium and the excess spread." — Mike Thompson, Managing Director of Warburg Pincus & Head of Capital Solutions for Europe #investing #alts "This is an industry with an almost infinite capital need and private equity exists to fulfill capital needs." — Mike Thompson, Managing Director of Warburg Pincus & Head of Capital Solutions for Europe #investing #alts "Prismic in and of itself is an alternative. Its exposure to a wide array and diverse allocation of alternatives and that's what I think is so compelling about how it is also affecting capital markets." — Keshav Rajagopalan, Managing Director & Head of Product & Strategy at PGIM Multi-Asset Solutions #institutionalnvesting #valueadd

Darin Bright is the Head of Core Plus Strategies at PGIM Real Estate. Darin is passionate about real estate investing and cultivating strong relationships within the investment community. Keshav and Darin examine the tangible aspects of real estate, including its durability, which make it an appealing and accessible component of a diversified portfolio. They discuss the opportunities new technologies and U.S. demographics bring to a diverse Core Plus Real Estate strategy. Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways: ● A New Cycle for Returns on Real Estate Investments. [2:25] ● Benefits of Core Plus Strategies in Real Estate. [4:08] ● Is the Office Sector Still an Attractive Investment Opportunity? [6:32] ● Real Estate-related Tailwinds that Promote Growth. [11:31] ● Opportunities of Deploying Capital in Senior Housing. [18:43] ● Three Main Takeaways About Core Plus Real Estate. [21:59] *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: "When we compare real estate to other asset classes, certainly fixed income, it's starting to deliver at an appropriate rate. You are buying at a pretty significant discount to replacement cost." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #PGIPodcasts #institutionalinvesting "Supply has been shut down because interest rates are high so we think it all adds up to this is the year to start getting ahead of the wave of what should be good normalized returns going forward." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #PGIMPodcasts #alternativeinvesting "We try to integrate the environmental process in everything we do when we underwrite and identify a new investment." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #PGIMPodcasts #institutionalnvesting "Tenants today are prioritizing highly-amenitized, class Double-A, well-located properties." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #investing #PGIMPodcasts "There are a lot of tailwinds that have to do with two segments of the population, Baby Boomers, and Millennials, that are the two largest and also wealthiest in the U.S. and how they consume real estate. Getting in front of whatever they consume is smart." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #investing #alts "There is no greater imbalance in supply and demand from the property sector than senior housing." — Darin Bright, Head of U.S. Core Plus at PGIM Real Estate #investing #valueadd

Today's panel consists of Matt Harvey, Head of Direct Lending at PGIM Private Capital, Sebastiano Ferrante, Head of Europe at PGIM Real Estate, and Stephan Wessel, Managing Partner at Montana Capital Partners, a private equity secondary mid-market specialist affiliate of PGIM. Keshav and the panel examine the findings of the 2024 Alts Report to understand how institutional investors are positioning their portfolios for a risk-on environment. The discussion covers topics such as target allocations to alternatives, geographic diversification, strategy selection, and the factors influencing investment decisions. Subscribe to Speaking of Alternatives on your favourite podcast platform. Key Takeaways: ● Private Alts: Allocations and Tensions in a Risk-on Environment. [2:20] ● Manage Investment Risk Factors with Covenants and Protections. [8:16] ● Unique Variations: Positive Leverage in European Real Estate. [12:14] ● Challenges in Private Alternatives: Fundraising and Valuations. [14:53] ● Panel Unpacks Today's Investment Headlines. [19:00] ● Expected Institutional Investment Headwinds and Tailwinds of 2025. [27:56] *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: To Request a Copy of the 2024 Report: PGIM.com/whats-your-alternative PGIM Private Alternatives realestate.investorservices.emea@pgim.com @PGIM on X @PGIM on Instagram PGIM on LinkedIn Shareables: "Capital generally has to be returned to portfolios before it can be re-deployed." — Matt Harvey, Head of Direct Lending at PGIM Private Capital #PGIMalts #institutionalinvesting "In the real estate market now, we see a stabilization in variations since this quarter and therefore we start seeing liquidity come back into the core space." — Sebastiano Ferrante, Head of Europe at PGIM Real Estate #PGIMPodcasts #alternativeinvesting "With digitalization, the AI portion will change real estate structurally and substantially. Don't only look at the cyclical element and cyclical opportunities, look at the structured changes that will happen to the real estate industry with the change in our societies and economies." — Sebastiano Ferrante, Head of Europe at PGIM Real Estate #PGIMalts #alternativeinvesting "If allocators expect the cost of capital to increase, irrespective of the underlying asset class, this would obviously impact valuations. This expected shift in asset prices will then trigger portfolio balancing." — Stephan Wessel Managing Partner at Montana Capital Partners #PGIMalts #investing "We will see a continuation of current trends with significant levels of uncommitted capital persisting into 2025 and beyond." — Stephan Wessel Managing Partner at Montana Capital Partners #PGIMalts #alternativeinvesting

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 Alternatives ● realestate.investorservices.emea@pgim.com ● @PGIM on X ● @PGIM on Instagram ● PGIM 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

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

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