Wealthy investors join insurers in backing PIMCO’s growing private credit platform
Insurers and other long-term investors are pouring more than US$7bn into Pacific Investment Management Co.’s growing asset-based finance platform, betting on private, asset-backed loans as an alternative to traditional bonds.
Bloomberg reports that PIMCO has raised the capital across several funds that invest in loans backed by hard and financial assets in residential and consumer markets.
The line-up includes PIMCO Asset-Based Lending Co., an evergreen vehicle for wealthy individuals expected to exceed US$500m in early 2026, and a dedicated insurance fund that has collected US$1.8bn to invest directly in private investment-grade loans.
Additional commitments are expected in the coming months.
About a third of the investors are new to PIMCO, and the fundraising is set to push total assets in the firm’s private asset-based funds to more than US$20bn by year-end.
PIMCO has been expanding its alternatives business beyond its bond roots through a specialty finance strategy that lends against financial or hard assets, including digital infrastructure, auto loans, equipment-based lending and aircraft leasing, as well as residential mortgages, credit cards and non-consumer loans.
The manager has told investors that a wave of insurance capital has driven down yields and eroded terms in investment-grade private credit, and it has responded by securing what it views as attractive senior financing on complex asset-based portfolios.
In aviation, PIMCO has highlighted finance as an area many private credit investors overlook, pointing to opportunities for stronger risk-adjusted returns as a constrained supply of planes from manufacturers such as Boeing Co. and Airbus SE supports higher lease rates.
Within the asset-based finance strategy, the Specialty Finance Income Fund, a flagship vehicle, raised US$1.6bn, while Custom ABF strategic partnerships – a separately managed fund for global institutional investors – drew US$2.8bn.
A second iteration of PIMCO’s Aviation Income Partners fund secured US$700m; the first fund generated a net internal rate of return of 12.7 percent, according to a quarterly investor report sent to clients.
According to Bloomberg, PIMCO has also taken leading roles in large, asset-heavy transactions.
Earlier this year, it led a US$27bn debt package for a Meta Platforms Inc. data centre, and it agreed to acquire a stake in Harley-Davidson Inc.’s financing unit and motorcycle loan portfolio alongside KKR & Co.
The firm is part of a broader group of money managers expanding into asset-based finance as banks scale back lending.
The private asset-based financing business is led by Chief Investment Officer Dan Ivascyn, along with Harin de Silva, Kristofer Kraus and Jason Steiner.
