wk-2025-12-31-ixbrl

Page 2

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Members' Report

The members present their report and the audited financial statements for the year ended 31 December 2025.

The company has taken advantage of the small companies exemption from preparing a strategic report under the

Companies Act 2006.

Principal activities

On 11 November 2014, Sterling Private Placement Management LLP (the 'LLP') was incorporated.

The principal activity of the LLP is to act as General Partner to the limited partnership established on 13 November

2014 by the LLP and PGIM Financial Limited, the ‘Initial Limited Partner’, under the name of Hermit Private

Placement Investors L.P. (the ‘Partnership’). On 13 February 2015, PGIM Financial Limited retired as a limited

partner of the Partnership and was replaced by a third party investor. The principal purpose of the Partnership is to

identify opportunities to invest in real estate related mezzanine loans on behalf of third party investors.

The activities and operation of the Partnership are governed by the terms of the Limited Partnership Agreement. The

LLP as General Partner is responsible for the management and operation of the Partnership. The Partnership, acting

through the General Partner, may appoint a manager to operate the business and affairs of the Partnership and its

assets, under the supervision and authority of the General Partner. The LLP as General Partner has appointed PGIM

Limited, which is authorised and regulated by the UK Financial Conduct Authority, to act as the Manager of the

Partnership under the terms of the management agreement.

Business review

During the year ended 31 December 2025, the LLP received no priority profit share. The result for the financial year

was £nil (2024: £nil) and therefore no profit distribution was made to the members (2024: £nil).

Future outlook and events after the Balance Sheet date

No known non-adjusting events have taken place after the financial year.

Going concern

The members have performed an assessment of the expected performance of the LLP for the 12 months following

the signature of the financial statements. The members have performed an analysis of actual and potential impact of

the current market conditions on the financial position, including work performed on stress-testing.

Due to the US tariffs and subsequent market volatility, forecasting the potential financial impact in the Company

remains challenging. The Directors are actively monitoring the situation.

Because of the strength of its balance sheet, the members are confident that the LLP can meet its liabilities as they

fall due for the next 12 months and is a going concern and the financial statements have been prepared on a going

concern basis.

Page 3

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Members' Report (continued)

Designated members

The designated members during the year ended 31 December 2025 are as follows:

PGIM Financial Limited

PGIM (Scots) Limited

Pricoa Management Partner Limited

The LLP is jointly owned by Pricoa Management Partner Limited and its parent, PGIM Financial Limited. On 29

September 2025, PGIM Financial Limited transferred its 50% interest to PGIM (Scots) Limited, which became joint

owner alongside Pricoa Management Partner Limited from that date. The LLP's ultimate parent company is

Prudential Financial, Inc., a company incorporated in the United States and listed on the New York Stock Exchange

(NYSE; PRU), and the parent undertaking of the largest group (the 'PFI Group') for which group financial

statements are prepared. The managing member of the LLP is PGIM Management Partner Limited.

Members' drawings and the subscription and repayment of members' capital

The repayment of any members’ capital contributions is at the discretion of the members. Members are entitled to an

allocation of profits pro-rata to their capital contributions. The net losses of the Partnership, if any, incurred in each

year shall be borne by the Partnership.

Page 4

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Members' Report (continued)

Statement of members' responsibilities in respect of the financial statements

The members are responsible for preparing the Annual Report and the financial statements in accordance with

applicable law and regulation.

Company law, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit)

(Application of Companies Act 2006) Regulations 2008 (the “Regulations”), requires the members to prepare

financial statements for each financial year. Under that law the members have prepared the financial statements in

accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards,

comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and

applicable law).

Under company law, as applied to limited liability partnerships, members must not approve the financial statements

unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss

of the LLP for that period. In preparing the financial statements, the members are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed,

subject to any material departures disclosed and explained in the financial statements;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP

will continue in business.

The members are responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The members are also responsible for keeping adequate accounting records that are sufficient to show and explain

the LLP’s transactions and disclose with reasonable accuracy at any time the financial position of the LLP and

enable them to ensure that the financial statements comply with the Companies Act 2006.

Disclosure of information to the auditors

As far as the members are aware, there is no relevant audit information of which the LLP’s auditors are unaware.

The members have taken all the steps they ought to have taken to make themselves aware of any relevant audit

information and to establish that the LLP’s auditors are aware of that information.

Approved by the members and signed on their behalf on 13 August 2026 by:

J. S. Brown

Director of Designated Member

Page 5

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Independent Auditors' Report to the Members of Sterling Private Placement

Management LLP

Report on the audit of the financial statements

Opinion

In our opinion, Sterling Private Placement Management LLP’s financial statements:

• give a true and fair view of the state of the LLP's affairs as at 31 December 2025 and of its result for the

year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable

in the UK and Republic of Ireland", and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited

liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of

Companies Act 2006) Regulations 2008.

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual

Report”), which comprise:

• the Balance Sheet as at 31 December 2025;

• the Profit and Loss Account for the year then ended;

• the Statement of Changes in Members' Interests for the year then ended; and

• the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable

law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the

financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Independence

We remained independent of the LLP in accordance with the ethical requirements that are relevant to our audit of

the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other

ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast significant doubt on the LLP’s ability to continue as a going

concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the members' use of the going concern basis of

accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the

LLP's ability to continue as a going concern.

Our responsibilities and the responsibilities of the members with respect to going concern are described in the

relevant sections of this report.

Page 6

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Independent Auditors' Report to the Members of Sterling Private Placement

Management LLP (continued)

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and

our auditors’ report thereon. The members are responsible for the other information. Our opinion on the financial

statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to

the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the financial statements or our

knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material

inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a

material misstatement of the financial statements or a material misstatement of the other information. If, based on

the work we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact. We have nothing to report based on these responsibilities.

Responsibilities for the financial statements and the audit

Responsibilities of the members for the financial statements

As explained more fully in the Statement of members' responsibilities in respect of the financial statements, the

members are responsible for the preparation of the financial statements in accordance with the applicable framework

and for being satisfied that they give a true and fair view. The members are also responsible for such internal control

as they determine is necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic

alternative but to do so.

Page 7

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Independent Auditors' Report to the Members of Sterling Private Placement

Management LLP (continued)

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error

and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in

line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including

fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the LLP and industry, we identified that the principal risks of non-compliance with

laws and regulations related to the Companies Act 2006, as applied to limited liability partnerships by the Limited

Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, and we

considered the extent to which non-compliance might have a material effect on the financial statements. We

evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements

(including the risk of override of controls), and determined that the principal risks were related to the manipulation

of financial data to present a more favourable financial or capital position. Audit procedures performed by the

engagement team included:

• Enquiries with management, including consideration of known or suspected instances of non-compliance

with laws and regulations and fraud;

• Reviewing relevant meeting minutes, including those of the members' Board of Directors; and

• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our

testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of

instances of non-compliance with laws and regulations that are not closely related to events and transactions

reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher

than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,

forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website

at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Page 8

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Independent Auditors' Report to the Members of Sterling Private Placement

Management LLP (continued)

Use of this report

This report, including the opinions, has been prepared for and only for the members of the partnership as a body in

accordance with the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability

Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and for no other

purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other

person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior

consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in

our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the LLP or returns adequate for our audit have not been

received from branches not visited by us; or

• the LLP's financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Entitlement to exemptions

Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in

our opinion, the members were not entitled to: prepare financial statements in accordance with the small limited

liability partnerships regime. We have no exceptions to report arising from this responsibility.

Jamil Kanji (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

13 August 2026

The notes on pages 12 to 15 form an integral part of these financial statements.

Page 9

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Profit and Loss Account

for the year ended 31 December 2025


	Note	2025	2024
		£	£
Operating result	3	—	—
Result for the year before members' remuneration and profit shares		—	—
Result for the year available for discretionary division among members		—	—

There was no other comprehensive income for the year (2024: £nil).

The notes on pages 12 to 15 form an integral part of these financial statements.

Page 10

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Balance Sheet

as at 31 December 2025


	Note	2025	2024
		£	£
Current assets
Trade and other receivables	4	2	2
Net current assets		2	2
Total assets less current liabilities		2	2
Net assets attributable to members		2	2
Members’ other interests
Members' capital classified as equity		2	2
Total members' interests		2	2

The Company's financial statements on pages 9 to 15 have been prepared in accordance with the provisions

applicable to entities subject to the small companies regime. The financial statements of Sterling Private

Placement Management LLP (registered number OC396378) on pages 9 to 15 were approved by the Board of

members and signed on their behalf on 13 August 2026 by:

J. S. Brown

Director of Designated Member

The notes on pages 12 to 15 form an integral part of these financial statements.

Page 11

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Statement of Changes in Members’ Interests

for the year ended 31 December 2025


	Equity	Loans and other debts due to members	Total
	Members' capital	Other amounts	2024
	£	£	£
Members' interest at 1 January 2024	2	—	2
Members' interests after result for the financial year	2	—	2
At 31 December 2024	2	—	2


	Members' capital	Other amounts	Total
	Members' capital	Other amounts	2025
	£	£	£
Members' interest at 1 January 2025	2	—	2
Members' interests after result for the financial year	2	—	2
At 31 December 2025	2	—	2

Page 12

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements

1 General information

Sterling Private Placement Management LLP (the 'LLP') is a limited liability partnership and is incorporated and

domiciled in the United Kingdom. The registered office of the LLP is Grand Buildings, 1-3 Strand, Trafalgar

Square, London WC2N 5HR.

The LLP acts as a General Partner to Hermit Private Placement Investors L.P. (the ‘Partnership’), under a

Limited Partnership Agreement, established and registered in England and Wales under the Limited Partnerships

Act 1907, between the LLP and certain limited partners. The principal purpose of the Partnership is to make

investments, together with other qualified institutional investors, in closed-end private investment vehicles,

which hold equity and equity-related securities of real estate operating companies and real estate business

ventures.

The financial statements are presented in GBP (£) which is also the LLP’s functional currency.

The LLP is jointly owned by Pricoa Management Partner Limited and its parent, PGIM Financial Limited. On

29 September 2025, PGIM Financial Limited transferred its 50% interest to PGIM (Scots) Limited, which

became joint owner alongside Pricoa Management Partner Limited from that date. The ultimate parent is,

Prudential Financial, Inc.. The results of the LLP are consolidated into the results of the ultimate controlling

party, Prudential Financial, Inc., which are publicly available at 751 Broad Street, Newark, NJ 07102.

2 Accounting policies

Basis of preparation

The LLP is preparing its financial statements in accordance with Financial Reporting Standard 102 - The

Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102'). The financial statements

have been prepared under the historical cost convention and in accordance with the Companies Act 2006, as

applied to limited liability partnerships and applicable accounting standards in the United Kingdom and the

requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships"

effective 1 July 2024.

Given the nature of the LLP's business no significant judgements or estimates are required. The principal

accounting policies applied in the preparation of these financial statements are set out below. These policies

have been consistently applied, unless otherwise stated.

Page 13

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements (continued)

2 Accounting policies (continued)

Going concern

The members have performed an assessment of the expected performance of the LLP for the 12 months

following the signature of the financial statements. The members have performed an analysis of actual and

potential impact of the current market conditions on the financial position, including work performed on stress-

testing.

Due to the US tariffs and subsequent market volatility, forecasting the potential financial impact in the Company

remains challenging. The Directors are actively monitoring the situation.

Because of the strength of its balance sheet, the members are confident that the LLP can meet its liabilities as

they fall due for the next 12 months and is a going concern and the financial statements have been prepared on a

going concern basis.

a) Exemptions for qualifying entities under FRS 102

FRS 102 allows a qualifying entity certain disclosure exemptions. The LLP is a member of Prudential Financial,

Inc. Group which prepare consolidated, publicly available financial statements. As a result, in accordance with

Section 7 of FRS 102 and paragraph 1.12(b), the LLP is exempt from the requirement to prepare a cash flow

statement under FRS 102 as the cash flows of the LLP are included in the consolidated cash flow statement of

the ultimate parent company, Prudential Financial, Inc..

The Company benefits from the exemption from the requirements of FRS 102 Section 33 Related Party

Disclosures to disclose related parties transactions entered into between two or more members of a group, where

any subsidiary which is a party to the transaction is wholly owned by such a member.

b) Turnover

Turnover comprises priority profit shares earned in the LLP’s role as General Partner and a portion of profits

from the Partnerships. This revenue is measured at the fair value of the consideration received or receivable. The

LLP recognises revenue in the accounting period in which the services are rendered and when it is probable that

an economic benefit will flow to the entity and can be reliably measured. The LLP recognises profit shares when

performance obligations have been satisfied.

c) Foreign currency

Functional and presentation currency

Items included in the financial statements of the LLP are measured using the currency of the primary economic

environment in which the LLP operates (the 'functional currency'). The LLP's functional currency is Pounds

Sterling (£).

Page 14

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements (continued)

2 Accounting policies (continued)

Foreign currency transactions

Transactions in foreign currencies are translated at exchange rates at the date of the transactions. Monetary

assets and liabilities denominated in foreign currencies, outstanding at the balance sheet date, are translated at

the exchange rates ruling at that date.

Foreign exchange differences arising on translation are recognised in the Profit and Loss Account specifically in

the administrative expenses. Non-monetary assets and liabilities that are measured in terms of historical cost in a

foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and

liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional

currency at foreign exchange rates ruling at the dates the fair value was determined.

d) Taxation

The taxation payable on profits is the personal liability of the members and accordingly the LLP has no tax

expense.

e) Members' remuneration and interests

Members' rights to participate in the profits or losses, or assets of the LLP are analysed between those that give

rise to, from the LLP's perspective, either a financial liability or equity, in accordance with Section 11 and 12 of

FRS 102 - 'Basic Financial Instruments ' and 'Other Financial Instruments Issues' and Section 22 of FRS 102

'Liabilities and Equity'. Members' different participation rights are analysed separately into liability and equity

elements. Where the LLP has a contractual obligation to deliver cash or another financial asset to the member in

respect of such amounts, it is treated as a liability. Where the repayment of the members' capital is discretionary,

it is treated as equity.

Members' remuneration

Non-discretionary amounts becoming due to members in respect of participation rights in the profits of the LLP

for an accounting period that give rise to liabilities are presented as an expense within the Profit and Loss

Account (within the heading Members' remuneration charged as an expense).

f) Related parties

The LLP discloses transactions with related parties which are not wholly owned with the same group. It does not

disclose transactions with members of the same group that are wholly owned.

Page 15

Sterling Private Placement Management LLP

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Notes to the Financial Statements (continued)

2 Accounting policies (continued)

g) Employee information

There were no employees in the current year (2024: nil).

h) Trade and other receivables

A regular review is performed of all the LLP's trade and other receivables. If there is significant uncertainty

regarding the recoverability of any of its trade and other receivables, a provision is recognised. If there is strong

evidence indicating the amounts recognised in the Balance Sheet will not be recovered, they will be written off.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost

less provision for impairments.

i) Significant estimates and judgements

No significant estimates and judgements has been used in the preparation of the financial statements of the year.

3 Operating result

The auditors' remuneration in respect of audit services provided to the LLP amounts to £10,400 (2024: £10,000)

and is borne by the member, Pricoa Management Partner Limited.

4 Trade and other receivables


	2025	2024
	£	£
Amounts owed by the members	2	2

Amounts included within amounts owed by the members are interest free, unsecured and repayable on demand.

The LLP has not suffered any losses as a result of trade receivable or counterparty defaults during the year and

as a result management does not believe that any provision is required for bad and doubtful debts.

5 Related party transactions

The LLP’s ultimate parent company is Prudential Financial, Inc., a company incorporated in the United States of

America. Related parties of the LLP comprise the ultimate parent and other subsidiaries of the ultimate parent,

principally PGIM Financial Limited, a designated member and the immediate parent. The LLP was jointly

owned by Pricoa Management Partner Limited and its parent, PGIM Financial Limited. On 29 September 2025,

PGIM Financial Limited transferred its 50% interest to PGIM (Scots) Limited, which became joint owner

alongside Pricoa Management Partner Limited from that date.

The smallest group to consolidate these financial statements is PGIM, Inc., a company incorporated in the

United States of America. Copies of the PGIM, Inc. consolidated financial statements can be requested from the

Company Secretary at 3 Gateway Center, 100 Mulberry Street, Newark, NJ 07102. The ultimate parent

undertaking and largest group to consolidate these financial statements is Prudential Financial, Inc. Copies of the

Prudential Financial, Inc. consolidated financial statements can be requested from the Company Secretary at 751

Broad Street, Newark, NJ 07102.

The LLP acts as General Partner to the Partnerships. The LLP is exempt from disclosing other related party

transactions as they are with other entities that are wholly owned within the PFI group.

6 Non adjusting events after the financial year

No known non-adjusting events have taken place after the financial year.


	Page(s)
Information	1
Members' Report	2 to 4
Independent Auditors' Report	5 to 8
Financial Statements	9 to 15
Profit and Loss Account	9
Balance Sheet	10
Statement of Changes in Members’ Interests	11
Notes to the Financial Statements	12 to 15