Pacific Investment Management Co. raised more than $7 billion for an asset-based finance strategy, including its first funds designed exclusively for insurance companies and wealthy individuals, according to a person familiar with the matter.
The funds will invest in loans backed by hard and financial assets across residential and consumer markets, said the person, asking not to be identified discussing confidential information. A representative for Newport Beach, California-based Pimco declined to comment.
The capital was raised for funds including PIMCO Asset-Based Lending Co., an evergreen vehicle for wealthy individuals that’s expected to exceed $500 million in early 2026, as well as a dedicated fund for insurance capital that collected $1.8 billion and invests directly in private investment-grade loans. Additional commitments are expected in coming months.
PIMCO previously said a wave of insurance capital has driven down yields and eroded terms in investment-grade private credit, and it has taken advantage by securing attractive senior financing on complex asset-based portfolios.
About a third of the investors are new to PIMCO, and the latest fundraising will boost total assets in PIMCO's private asset-based funds to more than $20 billion by year-end, the person said.
PIMCO has been growing its alternatives business as it diversifies beyond its bond roots. That includes the specialty finance strategy, which involves lending against financial or hard assets.
The business invests in digital infrastructure, auto loans, equipment-based lending and aircraft leasing, as well as residential mortgages, credit cards and non-consumer loans.
The firm led a $27 billion debt package for a Meta Platforms Inc. data center earlier this year, and agreed to acquire a stake in Harley-Davidson Inc.’s financing unit and motorcycle loan portfolio alongside KKR & Co.
PIMCO is among a raft of money managers that have expanded into asset-based finance and have capitalized on banks scaling back their lending.
Other funds in the strategy include the Specialty Finance Income Fund, a flagship vehicle that raised $1.6 billion, and Custom ABF strategic partnerships, a separately managed fund for global institutional investors that drew $2.8 billion.
A second iteration of PIMCO’s Aviation Income Partners fund secured $700 million. The first fund generated a net internal rate of return of 12.7%, according to a quarterly investor report sent to clients.
PIMCO has highlighted aviation finance as an area that many private credit investors tend to overlook, creating opportunities for more attractive risk-adjusted returns. A constrained supply of planes from manufacturers including Boeing Co. and Airbus SE means that lease rates are higher.
The investment firm’s private asset-based financing business is led by Chief Investment Officer Dan Ivascyn as well as Harin de Silva, Kristofer Kraus and Jason Steiner.
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