wk-2025-12-31-ixbrl

Page 2

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

For the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025

The Directors present their Strategic Report and the audited Financial Statements of PGIM

Loan Originator Manager Limited (the 'Company') for the year ended 31 December 2025.

This report has been prepared in accordance with Section 414A of the Companies Act 2006.

Principal activities

The Company holds certain classes of notes on an on-going basis for European risk retention

purposes, specifically the required retention interest in PGIM’s European collateralised loan

obligations (‘PGIM Euro CLOs’). The Company both manages and is a co-investment

manager for the PGIM Euro CLOs along with PGIM Limited (‘PGIML’) and is providing

certain investment advisory and portfolio management services. The Company receives fees

in respect of the services aforementioned and pays fees to PGIML for support services and

seconded personnel. The Company may also originate loans and undertake other business as

the Company deems suitable from time to time.

The Company is a majority owned subsidiary of The Prudential Insurance Company of

America (‘PICA’), with other investment in the Company coming from Prudential Legacy

Insurance Company of New Jersey (‘PLIC’). PLIC is a wholly owned subsidiary of PICA,

which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc., (‘PFI’) a

company incorporated in the United States, listed on the New York Stock Exchange (NYSE:

PRU). PFI and its subsidiaries are hereinafter referred to as the ‘PFI Group’.

The financial statements are presented in European Union Monetary Unit (‘EUR’) (€) which

is also the Company’s functional and operating currency.

The financial statements have been prepared on a going concern basis.

Business review

Whilst 2025 continued to be a challenging time for global markets as a whole, the

performance of the Company has proven to be robust.

During the year, the Company continued to make risk retention investments and act as a

collateral manager into newly launched PGIM Euro CLOs, as well as purchasing risk

retention investment from PGIML for CLOs that reset during the year. The Company

acquired four PGIML-held and PGIML-managed PGIM Euro CLO resets with a total

acquisition value of €89,394,154 and invested €60,456,950 in three newly launched PGIM

Euro CLOs. The Company also contributed €33,101,376 towards its warehouse investments

in various prelaunched PGIM Euro CLOs and received €35,536,088 in proceeds from those

investments when the CLOs launched. A "Warehouse" vehicle accumulates the interest in the

investments the CLOs will purchase to serve as collateral to the debt securities issued. The

Company’s existing risk retention portfolio in certain PGIM Euro CLOs decreased during the

year due to principal repayments on the Class A notes of Dryden XXVII-R Euro CLO 2017

DAC, Dryden 52 Euro CLO 2017 DAC, Dryden 44 Euro CLO 2014 DAC, Dryden 46 Euro

CLO 2020 DAC, a net decrease on the reset of Dryden 96 Euro CLO 2021 DAC, and a

valuation loss on Financial Assets at Fair Value through Profit and Loss. The value of the

PGIM Euro CLOs managed was €385,178,613 as at 31 December 2025 compared to

€253,831,975 as at 31 December 2024. Further details of the CLO investments are analysed

in Note 8 to the financial statements.

Page 3

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

For the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025

Business review (continued)

The Company recognised asset management fees of €23,493,167 and a profit of €12,126,802

during the year ended 31 December 2025. Although asset management fees were higher

when compared to 2024, there was a larger valuation loss on Financial Assets at Fair Value

through Profit and Loss and lower interest income due to unfavorable market conditions

(2024: asset management fees of €21,336,437 and profit of €17,263,016). The Directors are

satisfied with the performance for the year and the financial position at the balance sheet date

of the Company.

The Company received €89,980,604 in capital contribution during the year ended 31

December 2025 (31 December 2024: €nil).

Key Performance Indicators

The Company’s principal key measures of performance are management fees and

profitability. The financial statements show results for the year as set out below.


	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
Management fees from PFI Group affiliates	23,493,167	21,336,437
Profit before tax	16,169,070	23,023,048
Taxation	(4,042,268)	(5,760,032)
Profit for the financial year	12,126,802	17,263,016

As well as overall Company profitability, the Directors consider assets under management to be a key measure of performance.
	2025	2024
	€	€
Assets Under Management	387,310,875	258,398,949

Principal risks and uncertainties

The Directors continually assess the risks faced by the Company and believe that its principal

risk is business risk which is defined as the Company’s failure to meet its strategic objectives

through significant market movements or other external factors. The Company’s approach to

managing business risk is to closely monitor market and other movements in the business

environment and amend its strategy where necessary. In addition to business risk the

Company faces other significant risks which are outlined below.

Page 4

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

For the Year Ended 31 December 2025

Strategic Report for the Year Ended 31 December 2025

Principal risks and uncertainties (continued)

Market Risk

The Company is exposed to market risks, in the form of foreign currency risk, interest rate

risk, and investment risk arising from the market value of subordinated tranches for all CLOs.

The Company is exposed to foreign currency risk as the primary currency that is used is

EUR, with some transactions conducted in Great British Pound Sterling (‘GBP’) and US

Dollars. The Company is exposed to interest rate risk through its holdings of floating rate

loan notes in certain CLOs. The Company is also subject to market risk on the fair value of

the subordinated tranches for all CLOs. These investments are structured as loan notes which

the Company expects to hold to maturity and so the Company’s focus is primarily on the

credit risk associated with recovery of principal amounts on expiry of the loan notes. Neither

foreign currency risk nor interest rate risk are considered material at this stage.

Credit Risk

Credit risk arises mainly from cash and receivables from third parties, including balances

with other affiliated companies and CLOs. The Company’s approach to managing this risk is

to monitor and arrange settlement of receivable balances and non-affiliated balances with

third parties on a timely basis. The Company holds capital against potential losses on its CLO

investments.

Liquidity Risk

The Company manages liquidity risk through a combination of maintaining funding

commitments with affiliated companies and monitoring of the Company’s net current asset

position and does not consider liquidity risk to be material.

Business Continuity Risk

The Company maintains an operational control environment, supported by the Business

Continuity Planning framework.

The Company also considers other potential risks on an ongoing basis as part of its business

continuity management. In order to ensure the Company continues to have sufficient liquidity

to meet obligations as they fall due, capital and liquidity adequacy are monitored on an

ongoing basis.

Approved by the Board on 9 July 2026 and signed on its behalf by:

.........................................

J.S. Brown

Director

Page 5

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors’ Report for the Year Ended 31 December 2025

The Directors present their Annual Report and the audited Financial Statements of PGIM

Loan Originator Manager Limited (the 'Company') for the year ended 31 December 2025.

Future developments

Looking forward, it is anticipated that all of the new PGIM Euro CLOs launches and resets of

existing CLOs by PGIML will require the Company to undertake the risk retention

investment and to act as co-investment manager with PGIML.

Financial instruments

The Company holds certain financial instruments. Additional information on the Company’s

financial instruments can be found in Note 8 to the financial statements. The Company has

exposure to investment risks as noted in the ‘Principal risks and uncertainties’ section in the

Strategic Report.

Directors of the Company

The Directors who held office during the year and up to the date of the signing of the

financial statements were as follows:

P.D. Allan

J.P. Butler

B.M. Nolan

M.G. Fresson (resigned on 28 February 2026)

V. Khanna

T.L. Schmidt (resigned on 12 March 2026)

The following Directors were appointed after the year end:

J.S. Brown (appointed 28 February 2026)

M.T. Zomack (appointed 12 March 2026)

Dividends

The Company has not declared or paid any dividends during the year (2024: €nil).

Political donations

The Company has made no political donations and incurred no political expenditure during

the year (2024: €nil).

Charitable donations

During the year the Company did not made any charitable donations (2024: €nil).

Page 6

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors’ Report for the Year Ended 31 December 2025 (continued)

Going concern

The Directors have performed an assessment of the expected performance of the Company

for the 12 months following the signature of the financial statements. The Directors have

performed an analysis of the actual and potential impact of current market conditions on the

financial position, including work performed on stress testing such as a severe but plausible

downside scenario, and planned for mitigating actions that can be taken. The Company has

sufficient liquidity and access to sources of additional funding to enable it to meet its

strategic goals as planned for at least 12 months from the signing of the financial statements.

Following the imposition of US tariffs and the ensuing market volatility, the potential

financial impact for the Company from this is difficult to forecast and the Directors are

keeping the position under review. Due to the strength of its balance sheet and access to

sources of additional funding, the Directors are confident that the Company can meet its

liabilities as they fall due in the next 12 months and is a going concern and the financial

statements have been prepared on a going concern basis.

The Company will continue to act as the principal holder of the required risk retention in

EURO CLOs launched or reset by PGIM Limited as well as act as the co-investment manager

of those CLOs with PGIM Limited in 2025 and for the foreseeable future.

Post balance sheet events

On 31 March 2026, the Company received €10.3 million for the disposal of its warehouse

investment for Dryden 131 Euro CLO DAC in exchange for its holdings in the related CLO

vehicle.

Directors’ indemnity statement

As permitted by the Articles of Association, the Directors have the benefit of an indemnity,

which is a qualifying third-party indemnity provision as defined by Section 234 of the

Companies Act 2006. The indemnity was in force during the financial year and also at the

date of approval of the financial statements. The Company does not have its own Directors'

and Officers' liability insurance but is covered by a scheme run by its ultimate parent, PFI,

maintained throughout the financial year in respect of itself and its Directors.

Statement of Directors' responsibilities in respect of the financial

statements

The Directors are responsible for preparing the Annual Report and the financial statements in

accordance with applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year.

Under that law the Directors 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, Directors 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 Company and of the

profit or loss of the Company for that period. In preparing the financial statements, the

Directors are required to:

Page 7

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025

Directors’ Report for the Year Ended 31 December 2025 (continued)

Statement of Directors' responsibilities in respect of the financial

statements (continued)

• 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 Company will continue in business.

The Directors are responsible for safeguarding the assets of the Company and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are also responsible for keeping adequate accounting records that are sufficient

to show and explain the Company's transactions and disclose with reasonable accuracy at any

time the financial position of the Company and enable them to ensure that the financial

statements comply with the Companies Act 2006.

Directors' confirmations

In the case of each Director in office at the date the Directors’ Report is approved:

• so far as the Director is aware, there is no relevant audit information of which the

Company’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as a Director in order to

make themselves aware of any relevant audit information and to establish that the

Company’s auditors are aware of that information.

Independent Auditors

It is the intention of the Directors to reappoint the auditors in accordance with the

requirements of Section 487 of the Companies Act 2006.

Approved by the Board on 9 July 2026 and signed on its behalf by:

.........................................

J.S. Brown

Director

Independent auditors’ report to the member of PGIM

Loan Originator Manager Limited

Report on the audit of the financial statements

Opinion

In our opinion, PGIM Loan Originator Manager Limited's financial statements:

● give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit 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.

We have audited the financial statements, included within the Annual Report, which comprise:

● the Statement of Financial Position as at 31 December 2025;

● the Income Statement for the year then ended;

● the Statement of Comprehensive Income for the year then ended;

● the Statement of Changes in Equity 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 company 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 company’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 directors' 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

company's ability to continue as a going concern.

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

relevant sections of this report.

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 directors 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.

With respect to the Strategic report and Directors’ Report, we also considered whether the disclosures required by

the Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain

opinions and matters as described below.

Strategic report and Directors’ Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic

report and Directors’ Report for the year ended 31 December 2025 is consistent with the financial statements and

has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we did not identify any material misstatements in the Strategic report and Directors’ Report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

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

directors 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 directors 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 directors are responsible for assessing the company'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 directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

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 company and industry, we identified that the principal risks of non-compliance

with laws and regulations related to Companies Act 2006 and UK tax legislation, 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 manipulation of financial data to present a

more favourable financial or capital position, the posting of inappropriate journal entries to increase revenue, and

management bias in accounting estimates and judgemental areas of the Financial Statements such as the valuation

of collateralised loan obligations, where a market price is not readily available. 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 Board of Directors;

● Challenging assumptions and judgements made by management in their significant accounting estimates, in

particular the valuation of collateralised loan obligations where we obtained independent third party valuation

prices;

● Identifying and testing journal entries, in particular any journal entries posted with unusual account

combinations against revenue; 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.

Use of this report

This report, including the opinions, has been prepared for and only for the company's member as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 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 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 company or returns adequate for our audit have not

been received from branches not visited by us; or

● the company's financial statements are not in agreement with the accounting records and returns; or

● certain disclosures of directors' remuneration specified by law are not made.

We have no exceptions to report arising from this responsibility.

Victoria Tallon (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

9 July 2026

The notes on pages 16 to 42 form an integral part of these financial statements.

Page 12

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025


Income Statement
for the year ended 31 December
for the year ended 31 December
		2025	2024
	Note	€	€
Turnover from management fees	3	23,493,167	21,336,437
Interest income on financial assets at amortised cost	3	12,412,494	13,296,667
Total turnover		35,905,661	34,633,104

Administrative expenses	5	(18,157,623)	(16,417,566)

Other (losses)/gains	4	(1,578,968)	4,807,510

Operating profit	5	16,169,070	23,023,048

Profit before tax		16,169,070	23,023,048
Income tax expense	7	(4,042,268)	(5,760,032)
Profit for the financial year		12,126,802	17,263,016

The above results were derived from continuing operations.

The notes on pages 16 to 42 form an integral part of these financial statements.

Page 13

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025


Statement of Comprehensive Income
for the year ended 31 December
for the year ended 31 December
	2025	2024
	€	€
Profit for the financial year	12,126,802	17,263,016

Other comprehensive expense
Items that may reclassified to profit or loss
Foreign currency translation differences - foreign operations	(200,718)	(64,037)
Other comprehensive expense - net of tax	(200,718)	(64,037)
Total comprehensive income for the financial year	11,926,084	17,198,979

The notes on pages 16 to 42 form an integral part of these financial statements.

Page 14

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025


Statement of Financial Position
as at 31 December

		2025	2024
	Note	€	€
Assets
Non-current assets
Financial assets at fair value through profit or loss	8	15,185,253	12,584,098
Financial assets at amortised cost	8	369,993,360	241,247,877
		385,178,613	253,831,975

Current assets
Trade and other receivables	9	11,634,843	6,319,271
Cash and cash equivalents	10	26,099,264	52,625,006
Financial assets at fair value through profit or loss	8	2,132,262	4,566,974
		39,866,369	63,511,251
Total assets		425,044,982	317,343,226

Current liabilities
Trade and other payables	11	(10,236,383)	(4,441,315)
		(10,236,383)	(4,441,315)
Net current assets		29,629,986	59,069,936
Total assets less current liabilities		414,808,599	312,901,911

Net assets		414,808,599	312,901,911

Capital and reserves
Called up share capital	12	115	115
Capital contribution reserve	13	360,592,459	270,611,855
Foreign currency translation reserve		(259,312)	(58,594)
Profit and loss account		54,475,337	42,348,535
Total equity		414,808,599	312,901,911

The financial statements on pages 12 to 42 were approved by the Board on 9 July 2026 and

signed on its behalf by:

.........................................

J.S. Brown

Director

The notes on pages 16 to 42 form an integral part of these financial statements.

Page 15

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2025


Statement of Changes in Equity
for the year ended 31 December
	Share capital	Capital Contribution reserve	Foreign currency reserve	Profit and loss account	Total
	€	€	€	€	€
Balance at 1 January 2024	115	270,611,855	5,443	25,085,519	295,702,932
Profit for the financial year	—	—	—	17,263,016	17,263,016
Total other comprehensive expense	—	—	(64,037)	—	(64,037)
Total comprehensive income	—	—	(64,037)	17,263,016	17,198,979
Balance at 31 December 2024	115	270,611,855	(58,594)	42,348,535	312,901,911

Balance at 1 January 2025	115	270,611,855	(58,594)	42,348,535	312,901,911
Profit for the financial year	—	—	—	12,126,802	12,126,802
Total other comprehensive expense	—	—	(200,718)	—	(200,718)
Total comprehensive income	—	—	(200,718)	12,126,802	11,926,084
Issue of share capital	—	—	—	—	—
Capital contribution	—	89,980,604	—	—	89,980,604
Balance at 31 December 2025	115	360,592,459	(259,312)	54,475,337	414,808,599

Page 16

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025

1 General Information

The Company holds certain bonds and loans for European risk retention purposes, specifically

the required retention investment in PGIM Euro CLOs and acts as a warehouse during the

warehouse period. The Company also acts as a co-investment manager for the PGIM Euro

CLOs along with PGIM Limited (‘PGIML’) by providing certain investment advisory and

portfolio management services. The Company receives fees in respect for the services

aforementioned and pays fees to PGIML for co-investment management services and

seconded personnel. The Company may also originate loans and undertake other business as

the Company deems suitable from time to time. The Company is a private company limited

by share capital and is incorporated and domiciled in the United Kingdom. The registered

office of the Company is Grand Buildings, Strand, London, England, WC2N 5HR.

The financial statements are presented in EUR (€) which is also the Company’s functional

and operating currency.

The Company is a majority owned subsidiary of The Prudential Insurance Company of

America (‘PICA’), with other investment in the Company coming from Prudential Legacy

Insurance Company of New Jersey (‘PLIC’). PLIC is a wholly owned subsidiary of PICA,

which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc., (‘PFI’) a

company incorporated in the United States, listed on the New York Stock Exchange (NYSE:

PRU). PFI and its subsidiaries are hereinafter referred to as the ‘PFI Group’. The Company is

included in the consolidated results of PFI. PFI’s financial statements are publicly available

and available at 751 Broad Street, Newark, NJ 07102.

2 Accounting policies

The principal accounting policies applied in the preparation of these financial statements are

set out below. These policies have been consistently applied to all the years presented, unless

otherwise stated.

Basis of preparation

The Company prepared 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, as modified by the recognition of certain financial assets and liabilities measured

at fair value, and in accordance with the Companies Act 2006.

Going concern

The financial statements have been prepared on a going concern basis.

In order to ensure the Company continues to have sufficient liquidity to meet obligations as

they fall due, capital and liquidity adequacy are monitored on an ongoing basis.

The Directors have performed an assessment of the expected performance of the Company

for the 12 months following the signature of the financial statements. The Directors have

performed an analysis of the actual and potential impact of current market conditions on the

financial position, including work performed on stress testing such as a severe but plausible

downside scenario, and planned for mitigating actions that can be taken. The Company has

sufficient liquidity and access to sources of additional funding to enable it to meet its

strategic goals as planned for at least 12 months from the signing of the financial statements.

Page 17

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

Following the imposition of US tariffs and the ensuing market volatility, the potential

financial impact for the Company from this is difficult to forecast and the Directors are

keeping the position under review. Because of the strength of its balance sheet and access to

sources of additional funding, the Directors are confident that the Company can meet its

liabilities as they fall due in the next 12 months and is a going concern and the financial

statements have been prepared on a going concern basis.

The Company will continue to act as the principal holder of the required risk retention in

EURO CLOs launched or reset by PGIM Fixed Income investment professionals as well as

act as the co-investment manager of those CLOs with PGIM Limited in 2026 and for the

foreseeable future.

Summary of disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions. The Company is a member

of PFI Group which prepares consolidated, publicly available financial statements. As a result

the Company has taken advantage of the following disclosure exemptions under FRS 102:

(a) the requirements to prepare a cash flow statement in accordance with Section 7 of

FRS 102 and paragraph 3.17(d) as the cash flows of the Company are included in the

consolidated cash flow of the parent company, PFI,

(b) key management personnel compensation in total as required by FRS 102

paragraph 33.7, and

members of a group in accordance with paragraph 33.1(a).

Significant estimates and judgements

The preparation of the financial statements in conformity with FRS 102 requires management

to make judgements, estimates and assumptions that affect the application of accounting

policies and the reported amounts of assets, liabilities, income and expenses. Actual results

may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates recognised in the period in which the estimates are revised and in any

future periods affected.

Estimates made in preparation of these financial statements are as follows:

• The fair value of the investment held in CLOs that are held at fair value through profit

or loss (FVPL) are estimated based on the prices received from a third party pricing

service (Markit). Internal and independent prices received from third party arranger

banks are sometimes used as comparatives with Markit data.

• The fair value of investments held in CLOs that are held at amortised cost are

assessed on a regular basis for signs of impairment.

Significant judgements made in the preparation of these financial statements are as follows:.

• The Company is entitled to senior and subordinated management fees on CLOs for

acting as the co-collateral manager. The Directors have reviewed the CLOs in

question and have concluded these fees should be recognised at this time because it is

probable that future economic benefits will flow to the Company.

Page 18

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

• The Company is entitled to receive incentive fees based on the performance of the

CLOs for which it performs investment management services. Such incentive fees are

based upon the investment return in CLOs meeting pre-defined performance targets

across the life of the CLO. Accordingly, the amount of variable consideration earned

under this revenue stream is recognised as revenue to the extent that it is highly

probable that a significant reversal will not occur.

Foreign currencies

Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of

the primary economic environment in which the Company operates (the ‘functional

currency’). The Company’s functional and presentational currency is EUR (€).

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of the

Company 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 Income Statement

specifically in 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.

Foreign currency reserve

Unrealised foreign currency gains and (losses) arising on the translation of assets or liabilities

denominated in currencies other than EUR are recognised in other comprehensive income

and taken to the foreign currency reserve. Once the gain or (loss) is realised, it is taken to the

Income Statement.

Financial Instruments

The Company has chosen to adopt the recognition and measurement provisions of IFRS 9

Financial Instruments and the disclosure requirements of Sections 11 and 12 of FRS 102 in

respect of financial instruments.

i) Recognition

The Company recognises financial assets and financial liabilities in the Statement of

Financial Position when, and only when, the Company becomes party to the contractual

provisions of the financial instrument.

ii) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value though profit or loss; and

• Those to be measured at amortised cost.

Page 19

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

For assets measured at fair value, gains and losses will be recorded in profit or loss. The

Company reclassifies debt investments when and only when its business model for managing

those assets changes. The Company’s management has assessed which business models apply

to the financial assets held by the PFI Group and has classified its financial instruments into

the appropriate IFRS 9 categories.

The Company classifies its financial liabilities as subsequently measured at amortised cost.

iii) Measurement

At initial recognition, the Company measures a financial asset and liability at its fair value

plus, in the case of a financial asset or liability not at fair value through profit or loss,

transaction costs that are directly attributable to the acquisition of the financial asset or

liability. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Debt instruments: CLOs

Subsequent measurement of debt instruments depends on the Company’s business model for

managing the asset and the cash flow characteristics of the asset. The Company has debt

instruments which are held for collection of cash flows where those cash flows represent

solely payments of principal and interest. These are subsequently measured at amortised cost.

Interest income from these financial assets is included in revenue income using the effective

interest rate method. Any gain or loss arising on derecognition is recognised directly in profit

or loss and presented in other gains/(losses). Impairment losses are presented as a separate

line item in the Income Statement.

Under IFRS 9, the contractual cash flows of debt instruments must be assessed as to whether

they meet the test of being solely payments of principal and interest ("SPPI"). The

subordinated tranches for all CLOs fail this test. As a result, they are accounted for as FVPL,

and gains / (losses) from changes in fair value are recorded in the Income Statement.

iv) Derecognition

Regular way purchases and sales of financial assets are recognised on trade-date, the date on

which the Company commits to purchase or sell the asset. Financial assets are derecognised

when the rights to receive cash flows from the financial assets have expired or have been

transferred and the Company has transferred substantially all the risks and rewards of

ownership.

Financial liabilities are only removed from the balance sheet when it is extinguished. A

liability is extinguished when the obligation specified in the contract is discharged, cancelled

or expired.

v) Impairment of financial assets

The Company assesses on a forward-looking basis the expected credit loss associated with its

financial assets. The impairment methodology applied depends on whether there has been a

significant increase in credit risk. The Company applies the simplified approach permitted by

IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of

the assets. To measure the expected credit losses, assets are grouped based on shared credit

risk characteristics.

Page 20

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

The Company’s significant assets that are subject to IFRS 9’s expected credit loss (“ECL”)

model are investments that are measured at amortised cost, trade and other receivables,

including intercompany receivables. Under the Company's impairment methodology under

IFRS 9, there was no material impact on the Company’s financial statements from the

recognition of loss allowance for the trade and other receivables (2024: €nil).

Financial assets and liabilities

The Company has adopted the amortised cost model for CLOs that are categorised into junior

and senior tranches. Each tranche is assessed under the SPPI test and business model tests.

The subordinated tranches, due to their position in the CLO structure, are more exposed to

the credit risk of the other tranches and therefore do not pass the SPPI test. These are

therefore treated as fair value through profit or loss.

Impairment of financial assets

The Company’s significant assets that are subject to IFRS 9’s expected credit loss model are

its investment in CLOs and trade and other receivables, including intercompany receivables.

No loss allowance for the investment in CLOs nor trade and other receivables was recognised

for the year under IFRS 9 (2024: €nil).

Revenue recognition

The Company receives fees for co-investment management services provided to CLOs as

well as interest income from the CLOs based on the investment share the Company holds.

Interest income from those investments classified as financial assets at amortised cost are

accounted for in revenue on an accrual basis where reliable estimates of income are available.

Revenue is measured at the fair value of the consideration received or receivables and

represents the amount receivable for services.

The Company’s revenue streams are recognised as the services are provided and the amount

of revenue can be measured reliably and is shown net of value added tax (VAT) and other

sales related taxes.

Other gains/(losses)

Interest income from CLOs accounted for as financial assets at fair value through profit or

loss are recorded in other gains/(losses). Also included are fair value gains/(losses) on

financial assets through profit or loss and gains/(losses) on the sale of financial assets at

amortised cost and financial assets at fair value through profit and loss.

Tax

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in

the Income Statement except to the extent that it relates to items recognised directly in equity,

in which case it is recognised in equity. In this case, tax is also recognised in other

comprehensive income or directly in equity respectively. Current or deferred taxation assets

and liabilities are not discounted.

Page 21

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

Current tax is the expected tax payable or receivable on the taxable income or loss for the

year, using tax rates enacted or substantively enacted at the reporting date, and any

adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts

of assets and liabilities for financial reporting purposes and the amounts used for taxation

purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary

differences when they reverse, based on the laws that have been enacted or substantively

enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally

enforceable right to offset current tax liabilities and assets, and they relate to income taxes

levied by the same tax authority on the same taxable entity, or on different tax entities, but

they intend to settle current tax liabilities and assets on a net basis or their tax assets and

liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary

differences, to the extent that it is probable that future taxable profits will be available against

which they can be utilised. Deferred tax assets are reviewed at each reporting date and are

reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Accrued interest income

Accrued interest income which represents interest receivable from CLO investments is

recognised in the Income Statement as it accrues, using the effective interest rate method.

Trade and other receivables

A regular review is performed on all the Company’s receivables. If there is significant

uncertainty regarding the recoverability of any of its debtors, a provision is recognised. If

there is strong evidence indicating the amounts recognised in the Statement of Financial

Position 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. The Company has applied the simplified

approach to measuring expected credit losses for trade and other receivables and the

Company will measure lifetime credit losses at all times for trade and other receivables.

Cash and cash equivalents

Cash includes cash in hand, deposits held at call with banks, other short-term highly liquid

investments with original maturities of three months or less.

Trade and other payables

Trade and other payables, including accrued expenses and other creditors qualifying as

financial instruments, are initially recognised at fair value net of transaction costs incurred

and subsequently carried at amortised cost using the effective interest method.

Page 22

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 Accounting policies (continued)

Share Capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of

the cash or other resources received or receivable, net of the direct costs of issuing the equity

instruments. If payment is deferred and the time value of money is material, the initial

measurement is on a present value basis.

Shares issued during the reporting year are recognised at par in the share capital reserve and

any excess over the par value paid is recorded as share premium.

Administrative expenses

Administrative expenses are comprised of costs incurred by the Company. These are

recognised on an accrual basis.

Dividends

Dividend distributions to the Company’s shareholders are recognised as a liability in the

Company’s financial statements in the year in which the dividends are approved by the

Company’s shareholders. Dividends are recognised in the Statement of Changes in Equity.

Related parties

The Company discloses transactions with related parties which are not wholly owned within

the PFI Group. The Company does not disclose transactions with its parent or with members

of the same group that are wholly owned.

3 Turnover

The analysis of the Company’s turnover for the year from continuing operations is as follows:


	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
Management fees from PFI Group affiliates	23,493,167	21,336,437
Interest income on financial assets at amortised cost	12,412,494	13,296,667
Total turnover	35,905,661	34,633,104

The turnover is accrued and earned in the United Kingdom.

Page 23

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

4 Other (losses)/gains


	For the year ended 31 December 2025		For the year ended 31 December 2024
	€		€
Net fair value losses on financial assets at fair value through profit and loss	(7,597,254)		(1,419,548)
Interest income on financial assets at fair value through profit and loss	5,906,244		5,790,848
Net gains on the sale of financial assets at amortised cost	98,776		422,953
Realised gains on foreign currency transaction	13,266		13,257
Other (losses)/gains	(1,578,968)	(1,578,968)	4,807,510

5 Operating profit

Operating profit is stated after charging:


	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€

Affiliated asset management fee expense	17,890,833	16,132,539
Affiliated consulting services	49,467	54,942
Fees payable to the Company’s auditors in respect to the audit of the Company’s financial statements
	101,319	104,471
Other expenses	116,004	125,614

Page 24

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

6 Directors’ remuneration

There were no Directors’ emoluments for the year ended 31 December 2025 (2024: €nil).

The emoluments of the Directors are paid by the companies as follow:


Directors	Paid for by
P.D. Allan	PGIM Financial Limited (‘PFL’)

J.P. Butler	PFL

B.M. Nolan	PFL

M.G. Fresson (resigned on 28 February 2026)	PGIM European Services Limited (‘PGIMESL’)

V. Khanna	PICA

T. L. Schmidt (resigned on 12 March 2026)	PICA

It is not possible to make an accurate apportionment of the Directors' emoluments in respect

of each affiliate entity as the Directors do not receive any remuneration directly for their

services as Directors of the Company. Accordingly no recharges are made.

7 Income tax expense


	For the year ended 31 December 2025	For the year ended 31 December 2024
Recognised in the income statement	€	€
Total current tax:
Current year	(4,042,268)	(5,760,032)
Total current income tax	(4,042,268)	(5,760,032)

Total deferred tax:
Arising from origination and reversal of timing differences	—	—
Total tax expense	(4,042,268)	(5,760,032)

No income tax is recognised in Other Comprehensive Income (2024: €nil).

Corporation Tax in the UK is a corporate tax levied on the annual profits made by UK

resident companies. The UK Corporation Tax rate is currently 25.0% for all limited

companies.

The tax expense assessed for the year is equal to (2024: higher than) the standard rate of

corporation tax in the UK for the year ended 31 December 2025 of 25.0% (2024: 25.0%) as

shown in the following table:

Page 25

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

7 Income tax expense (continued)


	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
Profit before tax	16,169,070	23,023,048

Profit before tax multiplied by standard rate of corporation tax in UK 25.0% (2024: 25.0%)	(4,042,268)	(5,755,762)
Effect of:
Additional tax owed on 2023 income	—	(4,270)
Total tax charge	(4,042,268)	(5,760,032)

Income tax payable

The Company made payments on account of €5,940,380 (2024: €9,024,588) during 2025

related to the expected tax liability for the 2025 and 2024 tax years. A foreign currency

translation difference of €(7,502) (2024: €(173,373)) and an interest charge by the HRMC of

€(110,893) (2024: (€121,191)) was recognised relating to the tax liability. The total tax

charge for the financial year was €4,042,268 (2024: €5,760,032). This resulted in an income

tax receivable of €1,832,346 (2024: receivable of €52,629) as seen in Note 9 and deferred tax

asset of €nil (2024: €nil).

OECD Pillar Two

The group of which the Company is a member is within the scope of the OECD Pillar Two

model rules. The Company is in a Jurisdiction that has adopted a Qualified Domestic

Minimum Top-up Tax (QDMTT) and an Income Inclusion Rule (IIR) effective for the

financial year beginning 1 January 2024. In addition, for the undertaxed profits rule (UTPR)

the commencement date will be on or after the 31 December 2024.

The group does not expect to have an OECD Pillar Two related current tax exposure in the

jurisdiction from the application of QDMTT and IIR, while there could be open items with

respect to the possible application of the proposed Pillar Two rules which will determine how

and to what degree the Company will be impacted by the adopted Pillar 2 as more guidance is

developed by the OECD.

The group applies the exception to recognizing and disclosing information about deferred tax

assets and liabilities related to Pillar Two income taxes, as provided in the amendments to

Section 29 of FRS 102 issued in July 2023.

Page 26

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments


	Note	2025 €	2024 €
Financial assets at fair value through profit or loss
– Investments in CLOs (a)	8	17,317,515	17,151,072
		17,317,515	17,151,072
Financial assets that are debt instruments measured at amortised cost
– Trade receivables	9	6,909,761	4,399,599
– Accrued interest income	9	2,892,736	1,867,043
– Investments in CLOs (b)	8	369,993,360	241,247,877
		379,795,857	247,514,519
Financial liabilities measured at amortised cost
– Trade payables	11	(10,066,383)	(4,441,315)
– Investment payables on open trades	11	(170,000)	—
		(10,236,383)	(4,441,315)

(a) Financial assets at fair value through profit or loss

The Company classifies CLOs that do not qualify for measurement at either amortised cost or

fair value through other comprehensive income (FVOCI) as financial assets at fair value

through profit or loss (FVPL).

Analysis of movements


Collateralised Loan Obligation	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
At beginning of the year	12,584,098	13,468,493
Additions	9,496,804	—
Losses on Financial assets at fair value through profit or loss	(7,597,254)	(1,419,548)
Amortisation	701,605	535,153
At 31 December	15,185,253	12,584,098

Page 27

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)


Warehouse investments	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
At beginning of the year	4,566,974	43,474
Additions	33,101,376	4,523,500
Disposals	(35,536,088)	—
At 31 December	2,132,262	4,566,974

Fair value is the price that would be received to sell an asset or paid to transfer a liability in

an orderly transaction between market participants at the measurement date. When available,

the Company measures the fair value of an instrument using quoted prices from an orderly

transaction in the principal market, or in the absence of a principal market, in the most

advantageous market, for that instrument. The market for a financial instrument is regarded

as active if quoted prices are readily and regularly available and represent actual and

regularly occurring market transactions on an arm’s length basis.

If a market for a financial instrument is not active, then the Company establishes fair value

using a valuation technique considered appropriate by the Directors. The chosen valuation

technique makes maximum use of observable inputs, relies as little as possible on estimates

specific to the Company, incorporates all factors that market participants would consider in

setting a price, and is consistent with accepted economic methodologies for pricing financial

instruments.

The Company measures fair values using the following fair value hierarchy that reflects the

significance of the inputs used in making the measurements:

Level 1: Quoted price (unadjusted) in an active market for an identical instrument.

Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or

indirectly (i.e. derived from prices). This category includes instruments valued using: quoted

prices in active markets for similar instruments; quoted prices for identical or similar

instruments in markets that are considered less than active; or other valuation techniques for

which all significant inputs are directly or indirectly observable from market data.

Level 3: Valuation techniques based on significant unobservable inputs. This category

includes all instruments for which the valuation technique includes inputs not based on

observable data and the unobservable inputs have a significant effect on the instrument’s

valuation. This category includes instruments that are valued based on quoted prices for

similar instruments for which significant unobservable adjustments or assumptions are

required to reflect differences between the instrument.

Page 28

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)


2025
	Level 1	Level 2	Level 3	Total
	€	€	€	€
Financial assets at fair value through profit or loss
Unconsolidated structured entities	—	—	15,185,253	15,185,253
Warehouse investments	—	—	2,132,262	2,132,262
Total	—	—	17,317,515	17,317,515

2024
	Level 1	Level 2	Level 3	Total
	€	€	€	€
Financial assets at fair value through profit or loss
Unconsolidated structured entities	—	—	12,584,098	12,584,098
Warehouse investments	—	—	4,566,974	4,566,974
Total	—	—	17,151,072	17,151,072

The unconsolidated structured entities and warehouse investments were valued using pricing

information from a third party valuation system and deemed to have a fair value of

€17,317,515 at 31 December 2025 (2024: €17,151,072). The Company concluded that based

on the illiquidity of trading and the lack of reliable market valuations for those investments

its investments in CLOs are appropriately considered as Level 3 investments. There have

been no transfers between levels.

(b) Financial assets at amortised cost

The Company classifies its financial assets at amortised cost only if both of the following

criteria are met:

• the asset is held within a business model whose objective is to collect the contractual

cash flows; and

• the contractual terms give rise to cash flows that are solely payments of principal and

interest.

Page 29

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)


Collateralised Loan Obligation	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
At beginning of the fiscal year	241,247,877	242,979,141
Additions	156,990,150	41,973,870
Disposals	(28,371,482)	(44,184,899)
Gains on sale of Financial assets at amortised cost	98,776	422,953
Amortisation	28,039	56,812
At 31 December	369,993,360	241,247,877

For financial assets at amortised cost, a 12-month ECL model was used to calculate the

estimated expected credit loss for the 12 months subsequent to the balance sheet date based

on a probability weighted range of expected outcomes. The expected credit loss was

immaterial, which would have otherwise been recognised in the Income Statement. Due to

the waterfall structure in the CLOs, the subordinated tranches are more exposed to credit

losses than the tranches carried at amortised cost. The fair value of CLO instruments

classified as financial assets at amortised cost at 31 December 2025 is €369,329,957 (2024:

€239,614,295).

Investments in CLOs

The Company has various investments in CLOs and warehouse investments, which are

classed as ‘Other Financial Instruments’ under Section 12 of FRS 102. The investments in the

CLOs and warehouse investments comprise loan notes of variable seniority secured on the

CLO and warehouse investments in various fixed income products, principally traded bank

loans and bonds. The Company’s interests have been acquired in accordance with the Risk

Retention rules of Article 405 of the Capital Requirements Regulations (EU no 575/2015).

Under the Risk Retention rules, the Company, as the co-collateral manager for the CLOs and

warehouse investments is required to co-invest alongside third party note holders and to hold

its investment until the maturity of the notes or, in the event of prepayment of the notes, the

date of final prepayment.

Looking forward, it is anticipated that all of new CLO launches and resets of existing CLOs

will require the Company to hold the risk retention percentage instead of PGIML. In those

instances, risk retention investments will be undertaken by the Company, which will act as

co-investment manager with PGIML. PGIML will continue to act as sole collateral manager

to the existing CLOs and hold the 5% investment required in these CLOs. The Company will

obtain the 5% investment of recently reset existing EURO CLOs as well as purchase the 5%

investment required of newly launched EURO CLOs.

Page 30

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)

Additions

During the year, the following PGIM Euro CLOs were reset and reinvested in by PGIMLOM

for €106 million:

• Dryden 48 EUR CLO 2016 DAC (obtained from PGIML)

• Dryden 56 EUR CLO 2020 DAC (obtained from PGIML)

• Dryden 66 EUR CLO 2018 DAC (obtained from PGIML)

• Dryden 74 EUR CLO 2020 DAC (obtained from PGIML)

• Dryden 96 Euro CLO 2021 DAC

Also, during the year, the following PGIM CLOs were launched from warehouses and

invested in by PGIMLOM for €60.5 million.

• Dryden 111 EUR CLO 2022 DAC

• Dryden 124 EUR CLO 2024 DAC

• Dryden 125 EUR CLO 2024 DAC

During the year ended 31 December 2024, the following PGIM Euro CLOs were reset and

reinvested in by PGIMLOM for €42 million:

• Dryden 91 Euro CLO 2021 DAC

• Dryden 103 EUR CLO 2021 DAC

Also, during the year ended 31 December 2024, no new CLOs were launched.

Disposals

During the year, the principal amount of:

• Class A notes for Dryden XXVII-R Euro CLO 2017 DAC, Dryden 52 Euro CLO

2017 DAC, Dryden 44 Euro CLO 2014 DAC and Dryden 46 Euro CLO 2020 DAC

were repaid at €9.7 million.

• Class FRR for Dryden 39 Euro CLO 2015 DAC was repaid for €0.1 million.

Also, during the year, Dryden 96 Euro CLO 2021 DAC was reset and repaid for €18.5

million.

During the year ended 31 December 2024, the principal amount of:

• Class A notes for Dryden XXVII-R Euro CLO 2017 DAC, Dryden 52 Euro CLO

2017 DAC, and Dryden 96 Euro CLO 2021 DAC were repaid at €3.2 million.

• Class X for Dryden 39 Euro CLO 2015 DAC was repaid for €0.03 million.

• Class FRR for Dryden 39 Euro CLO 2015 DAC was repaid for €0.09 million.

Also, during the year ended 31 December 2024, Dryden 91 Euro CLO 2021 DAC and

Dryden 103 EUR CLO 2021 DAC were reset and repaid for €40.9 million.

Page 31

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)

Warehouse investments

During the year, the Company contributed €33.1 million towards its warehouse investments

in the following PGIM Euro CLOs:

• Dryden 111 Euro CLO 2022 DAC

• Dryden 124 Euro CLO 2024 DAC

• Dryden 125 Euro CLO 2024 DAC

• Dryden 131 Euro CLO DAC

Also during the year, the Company received €35.5 million for the disposal of its warehouse

investments in the following PGIM Euro CLOs:.

• Dryden 111 Euro CLO 2022 DAC

• Dryden 124 Euro CLO 2024 DAC

• Dryden 125 Euro CLO 2024 DAC

During the year ended 31 December 2024, the Company contributed €4.5 million towards its

warehouse investments in the following PGIM Euro CLO:

• Dryden 111 Euro CLO 2022 DAC

Also during the year ended 31 December 2024, there were no disposals of warehouse

investments.

Page 32

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)

Current contractual maturity of the CLO loan notes and the maximum exposure to loss on the

CLO loan notes is as follows:


	Maturity 2025	Carrying value/ Maximum exposure to loss at 31 December 2025	Maturity 2024	Carrying value/ Maximum exposure to loss at 31 December 2024
Non-current assets		€		€
Dryden XXVII-R Euro CLO 2017 DAC	2033	15,495,696	2033	20,793,132
Dryden 44 Euro CLO 2014 DAC	2034	18,397,843	2034	19,441,942
Dryden 46 Euro CLO 2020 DAC	2034	20,995,593	2034	21,959,221
Dryden 52 Euro CLO 2017 DAC	2034	12,948,702	2034	17,439,105
Dryden 69 Euro CLO 2018 DAC	2034	19,253,065	2034	19,706,373
Dryden 88 Euro CLO 2020 DAC	2034	19,299,548	2034	19,769,788
Dryden 89 Euro CLO 2020 DAC	2034	21,585,076	2034	22,146,170
Dryden 79 Euro CLO 2020 DAC	2035	24,228,621	2035	24,781,747
Dryden 39 Euro CLO 2015 DAC	2035	23,800,226	2035	24,190,560
Dryden 91 Euro CLO 2021 DAC	2038	24,229,631	2038	24,675,392
Dryden 96 Euro CLO 2021 DAC	2038	17,044,721	2035	19,375,156
Dryden 103 Euro CLO 2021 DAC	2038	19,417,183	2038	19,553,389
Dryden 56 Euro CLO 2017 DAC	2038	25,121,880
Dryden 111 Euro CLO 2022 DAC	2038	19,899,353
Dryden 124 Euro CLO 2024 DAC	2037	19,856,228
Dryden 66 Euro CLO 2018 DAC	2038	24,282,697
Dryden 74 Euro CLO 2020 DAC	2039	19,480,700
Dryden 48 Euro CLO 2016 DAC	2040	19,738,809
Dryden 125 Euro CLO 2024 DAC	2038	20,103,041
Total investments		385,178,613		253,831,975

At 31 December, the following Company balances relate to the Company’s investments in

CLOs.


	2025	2024
	€	€
Carrying value of financial assets through profit or loss	15,185,253	12,584,098
Carrying value of financial assets at amortised cost	369,993,360	241,247,877
Total investments	385,178,613	253,831,975

Page 33

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

8 Financial instruments (continued)

Maximum exposure to loss

The CLO investments comprise loan notes independently rated as follows:


	2025	2024
S&P/Moody’s	€	€
AAA/Aaa	239,714,548	156,919,256
AA+ / Aa1	4,550,000	—
AA/Aa2	36,695,000	26,115,000
AA-/Aa3	2,820,000	—
A/A2	23,414,000	17,403,000
BBB/Baa2	5,875,000	1,350,000
BBB-/Baa3	23,785,000	17,395,000
BB-/Ba3	20,653,066	13,929,847
B-/B3	11,041,844	6,691,454
CCC+/Caa1	645,195	1,444,320
CCC / Caa2	799,707	—
Not rated	15,185,253	12,584,098
Maximum exposure to loss	385,178,613	253,831,975

9 Trade and other receivables


	2025		2024
	€		€
Trade and other receivables from PFI Group affiliates	6,790,546		4,359,016
Trade and other receivables from third parties	119,215		40,583
Accrued interest income	2,892,736		1,867,043
Income tax receivable	1,832,346		52,629
	11,634,843	1 1 6 3 4 8 4 3	6,319,271

Trade and other receivables from PFI Group affiliates are unsecured, interest free, have no

fixed date of repayment and are repayable on demand.

The Company has not suffered any losses because of trade debtor or counterparty defaults

during the year (2024: €nil). The Company applies the IFRS 9 simplified approach to

measuring expected credit losses which uses a lifetime expected loss allowance for all trade

and other receivables and no expected loss allowance was recognised during the year (2024:

€nil).

The trade and other receivables classified as financial instruments are disclosed above in

Note 8. The Company's exposure to credit and market risks, including maturity analysis,

relating to trade and other receivables is disclosed in the financial risk review in Note 14.

Page 34

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

10 Cash and cash equivalents


	2025	2024
	€	€
Cash at bank	26,099,264	52,625,006

The Company’s approach to managing credit risk is to hold cash with large, systemically

important banks and to monitor and arrange settlement of receivable balances and non-

affiliated balances with third parties on a timely basis.

11 Trade and other payables


	2025	2024
	€	€
Current
Amounts owed to PFI Group companies	(9,936,744)	(4,376,547)
Trade and other payables to third parties	(129,639)	(64,768)
Investment payables on open trades	(170,000)	—
	(10,236,383)	(4,441,315)

Amounts owed to PFI Group companies are unsecured, interest free, have no fixed date of

repayment and are repayable on demand.

12 Called up share capital

Allotted, called up and fully paid shares:


	2025	2024
	€	€
At 31 December	115	115

The Company issued 100 ordinary shares on 3 March 2020 at a nominal rate of €1.15 (£1)

and as at 31 December 2025 no share premium has been recognised in respect of any shares

issued.

13 Capital contribution reserve


	2025	2024
	€	€
At beginning of year	270,611,855	270,611,855
Contributed in the year	89,980,604	—
At 31 December	360,592,459	270,611,855

Capital contribution reserve

The capital contribution reserve represents a capital injection to the Company from PICA and

PLIC and is a distributable reserve.

Page 35

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 Financial Risk Management

The Company has exposure to credit risk, liquidity risk and market risk from financial

instruments. This note presents information about the Company’s exposure to each of these

risks, the Company’s objectives, policies and processes for measuring and managing risk, and

the Company’s management of capital.

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and

oversight of the Company’s risk management framework and for developing and monitoring

the Company’s risk management policies.

The Company’s risk management policies are established largely through the PFI Group to

identify and analyse the risks faced by the Company, to set appropriate risk limits and

controls and to monitor risks and adherence to limits. Risk management policies and systems

are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company, through its training and management standards and procedures, aims to

maintain a disciplined and constructive control environment in which all employees

understand their roles and obligations.

The Board oversees how management monitors compliance with the Company’s risk

management policies and procedures, and reviews the adequacy of the risk management

framework in relation to the risks faced by the Company. The ultimate parent’s Internal Audit

team undertakes both regular and ad hoc reviews of risk management controls and

procedures, the results of which are reported to the Audit Committee of the ultimate parent.

(a) Credit risk

Credit risk is the risk of a counterparty of the Company defaulting on funds deposited with it

or the non-receipt of a trade debt.

The Company regularly monitors and reviews its credit risk. Credit risk arises mainly from

cash and receivables from third parties, including balances with other affiliated companies,

and CLOs. The Company’s approach to managing this risk is to monitor and arrange

settlement of receivable balances and non-affiliated balances with third parties on a timely

basis. The Company holds senior, junior and subordinated loan notes in CLOs and is exposed

to the risk of partial or non-repayment of those notes on maturity. The senior and junior notes

in those CLOs are independently rated (as outlined in Note 8). Furthermore, the Company is

the co-collateral manager of the CLOs in which it invests and is therefore able to adequately

monitor those investments for impairments. A 12 month ECL model was used to calculate the

estimated expected credit loss on all CLOs accounted for as fair value assets at amortised cost

for the 12 months subsequent to the balance sheet date. The expected credit loss was

immaterial.

Page 36

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 Financial Risk Management (continued)

A significant portion of the Company's counterparties are affiliated entities or investment

vehicles for which the Company performs co-managerial services. As a result the Company is

well placed to identify potential credit risk issues and respond accordingly. For counterparties

where the Company does not have such a relationship, the Company, both on the inception of

an agreement with a counterparty and periodically thereafter, reviews and appraises the risk

of payment default through reference to standard credit measures and the monitoring of

payment patterns and outstanding balances.

The Company has not suffered any losses as a result of trade receivables or counterparty

defaults during the year (2024: €nil) and based on the Expected Credit Loss model the loss is

immaterial.


	0-30 days	30-90 days	90+ days	Total
2025	€	€	€	€
Trade and other receivables from PFI Group affiliates	6,790,546	—	—	6,790,546
Trade and other receivables from third parties	119,215	—	—	119,215
Total	6,909,761	—	—	6,909,761


	0-30 days	30-90 days	90+ days	Total
2024	€	€	€	€
Trade and other receivables from PFI Group affiliates	4,359,016	—	—	4,359,016
Investment receivables on open trades	40,583	—	—	40,583
Total	4,399,599	—	—	4,399,599

The Company applies the IFRS 9 simplified approach to measuring expected credit losses

which uses a lifetime expected loss allowance for all trade receivables. To measure ECL

trade receivables have been grouped by PFI group to reflect the shared credit risk

characteristics. Expected loss rates are based on the historic credit loss experienced for each

PFI group and adjusted for current and forward information affecting the ability of the

individual customers to settle receivables.

The Company has no loss allowance as at 31 December 2025 (2024: €nil).

(b) Liquidity risk

Liquidity risk is the risk that the Company may be unable to meet its payment obligations as

they fall due.

The Company manages liquidity risk through a combination of maintenance of funding

commitments with affiliated companies and detailed monitoring of the Company’s net

current asset position and does not consider liquidity risk to be material. It is the Company’s

policy to ensure that it has access to funds to cover all forecast commitments for at least the

next 12 months. Financial liabilities comprise trade and other payables with remaining

contractual maturities of less than one year.

Page 37

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 Financial Risk Management (continued)

The table below reflects the age profile of payables:

Maturity analysis


At 31 December	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total contractual cash flows	Carrying amount of financial liabilities
2025	€	€	€	€	€	€
Amounts owed to PFI Group companies	(9,936,744)	—	—	—	(9,936,744)	(9,936,744)
Trade and other payables to third parties	(129,639)	—	—	—	(129,639)	(129,639)
Investment payables on open trades	(170,000)	—	—	—	(170,000)	(170,000)
Total	(10,236,383)	—	—	—	(10,236,383)	(10,236,383)


At 31 December	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total contractual cash flows	Carrying amount of financial liabilities
2024	€	€	€	€	€	€
Amounts owed to PFI Group companies	(4,376,547)	—	—	—	(4,376,547)	(4,376,547)
Trade and other payables to third parties	(64,768)	—	—	—	(64,768)	(64,768)
Total	(4,441,315)	—	—	—	(4,441,315)	(4,441,315)

Market risk - Foreign currency risk

Foreign currency risk is the risk that the Company will sustain losses through adverse

movements in foreign currency exchange rates.

The primary currency that is used is EUR, with some transactions conducted in GBP and US

Dollars. As the main currency used is EUR the Company does not see this as a significant

risk, as any movements are not expected to have a material effect on the net assets.

Page 38

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 Financial Risk Management (continued)

Market risk – Interest rate risk

Interest rate risk is the risk that the Company will sustain losses from adverse movements in

interest rates, either through a mismatch of interest-bearing assets and liabilities, or through

the effect such movements have on the value of interest-bearing instruments.

The Company is primarily exposed to interest rates on investments held in CLOs. This

exposure is monitored by management on a continuous basis but is not expected to have a

material effect on Company results.

Market risk – Investment risk

Investment risk is the risk that the Company will sustain losses from adverse movements in

market prices from sub tranches of the CLO assets.

The Company is primarily exposed to movements on the market values of investments in

CLOs. Management considers 5% to be a reasonably possible change to the market value.

These investments are structured as listed securities which the Company expects to hold to

maturity and so the Company’s focus is primarily on the credit risk associated with recovery

of principal amounts on expiry of the notes.

The sensitivities to market risk as at 31 December 2025 and 2024 are estimated below:


	Effect on profit for the year	Effect on other comprehensive income	Effect on net assets
2025	€ 000s	€ 000s	€ 000s
Foreign currency risk - +5% change in £:€ rate (1)	—	116	116
Foreign currency risk - +5% change in $:€ rate (1)	—	(2)	(2)
Interest Rate risk - +50 basis point change in 3 month Euro Interbank Offered Rate (Euribor)	—	1,151	1,151
Interest Rate risk - -50 basis point change in 3 month Euribor Rate	—	(1,151)	(1,151)
Pricing risk - +5% change in market value (1)	—	19,259	19,259
(1) Conversely, a -5% change in the input would have the opposite impact as presented in the table.

The floating rate charged to most loan notes of the CLOs is calculated based on the 3 month

Euro Interbank Offered Rate (Euribor) with all tranches having a floor of 0% plus a margin

amount. The applicable rate on most of the floating rate loan notes for the CLO tranches with

a floor was 2.01% at 31 December 2025.

Page 39

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 Financial Risk Management (continued)


	Effect on profit for the year	Effect on other comprehensive income	Effect on net assets
2024	€ 000s	€ 000s	€ 000s
Foreign currency risk - +5% change in £:€ rate (1)	—	15	15
Foreign currency risk - +5% change in $:€ rate (1)	—	(10)	(10)
Interest Rate risk - +50 basis point change in 3 month Euribor Rate	—	1,051	1,051
Interest Rate risk - -50 basis point change in 3 month Euribor Rate	—	(1,051)	(1,051)
Pricing risk - + 5% change in market value (1)	—	12,692	12,692
(1) Conversely, a -5% change in the input would have the opposite impact as presented in the table.

The floating rate charged to most loan notes of the CLOs is calculated based on the 3 month

Euribor Rate with all tranches having a floor of 0% plus a margin amount. The applicable

rate on the floating rate loan notes for the CLO tranches with a floor was 3.21% at 31

December 2024.

(d) Capital management

The Company’s main objectives in managing its capital are to ensure surplus capital in excess

of its capital commitments is deployed appropriately, to protect the overall returns of the

Company and with due consideration to the Company’s liquidity.

The Company was successful in meeting its objectives during this and the previous financial

year.

The Company’s capital is represented by the Company’s total equity as disclosed in the

Statement of Changes in Equity. As at 31 December 2025 this totalled €414,808,599 (2024:

€312,901,911). The Company’s objective when managing capital is to safeguard its ability to

continue as a going concern in order to support the developments of the business and provide

returns for shareholders.

15 Commitments

The Company had no commitments at 31 December 2025 (2024: €nil).

16 Contingent liabilities

The Company does not have any contingent liabilities requiring disclosure in these financial

statements as at 31 December 2025 (2024: €nil).

Page 40

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

17 Related parties

The smallest group to consolidate these financial statements is PICA, a company

incorporated in the United States of America. Copies of the PICA consolidated financial

statements can be requested from the Company Secretary at 751 Broad Street, Newark, NJ

07102. The Company’s ultimate parent company and largest group to consolidated these

financials is PFI, a company incorporated in the United States of America. Copies of the PFI

consolidated financial statements can be requested from the Company Secretary at 751 Broad

Street, Newark, NJ 07102. Related parties of the Company comprise the ultimate parent and

other subsidiaries of the ultimate parent, principally PGIML and PICA. The Company is a

partially owned subsidiary of PICA, with other investment in the Company provided by

PLIC.

The Company discloses transactions with related parties which are not wholly owned within

the PFI Group.

In addition, the Company manages a number of collective investment schemes and structured

entities which include entities deemed to be related parties due to collateral management

agreements between companies within the PFI Group and those entities.


	For the year ended 31 December 2025	For the year ended 31 December 2024
	€	€
Management fees received and receivable from PFI Group affiliates	23,493,167	21,336,437
Interest income on financial assets at amortised cost	12,412,494	13,296,667
Net fair value losses on financial assets at fair value through profit and loss	(7,597,254)	(1,419,548)
Interest income on financial assets at fair value through profit and loss	5,213,831	5,187,427
Net gains on the sale of financial assets at amortised cost	98,776	422,953
Trade and other receivables from PFI Group affiliates	9,683,282	6,226,059
Investment payable on open trades due to PFI Group affiliates	170,000	—

18 Non adjusting events after the financial year

On 31 March 2026, the Company received €10.3 million for the disposal of its warehouse

investment for Dryden 131 Euro CLO DAC in exchange for its holdings in the related CLO

vehicle.

Page 41

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

19 Reconciliation from UK GAAP (FRS 102) to US GAAP

Financial Reporting Standard 102 – The Financial Reporting Standard applicable in the UK

and Republic of Ireland (‘FRS 102’) varies in some respects from accounting principles

generally accepted in the United States of America (‘US GAAP’). There is an adjustment for

unrealised losses to adjust Financial Assets at Amortised Cost to fair value and to recognise

related deferred taxes in accordance with US GAAP for the years ended 31 December 2025

and 2024. Amounts presented in the below table are calculated based on the total Company

basis.


31 December 2025	Profit/(Loss) €	Shareholders’ equity €
FRS 102 basis	12,126,802	414,808,599
Differences between FRS 102 basis and US GAAP basis of Accounting:
Unrealised gain/(loss) on investments	970,179	(663,403)
Deferred tax on unrealised gain/(loss) on investments	(242,545)	165,851
US GAAP basis	12,854,436	414,311,047


31 December 2024	Profit/(Loss) €	Shareholders’ equity €
FRS 102 basis	17,263,016	312,901,911
Differences between FRS 102 basis and US GAAP basis of Accounting:
Unrealised gain/(loss) on investments	8,021,412	(1,633,582)
Deferred tax on unrealised gain/(loss) on investments	(2,005,353)	408,396
US GAAP basis	23,279,075	311,676,725

Unrealised Gain/Loss on investments

The recognition and measurement principles of IFRS 9 “Financial Instruments” have been

applied by the Company. In accordance with US GAAP (ASC 320, “Investments - Debt

Securities”), the Company’s investments are fixed maturities securities classified as

“available-for-sale” or trading, at fair value. Both types of investments are subsequently

measured at fair value under US GAAP. Unrealised holding gains or losses for available-for-

sale securities are excluded from earnings and reported in Other Comprehensive Income until

realised. Unrealised holding gains or losses for fixed maturities trading, at fair value are

included in earnings. In accordance with IFRS 9, the Company’s investments are classified

as financial instruments at amortised cost or at fair value through profit or loss. Certain

investments are held for collection of cash flows where those cash flows represent solely

payments of principal and interest. These investments are subsequently measured at

amortised cost and any gain or loss on these investments is recognised upon derecognition in

profit or loss. For instruments measured at fair value, gains and losses are recorded in profit

and loss. An adjustment to record Other Comprehensive Income is required to recognise the

unrealised loss on Financial Instruments at Amortised Cost that would have been recognised

at fair value as available-for-sale securities under US GAAP. An adjustment to record a

related deferred tax amount on the unrealised loss on investments was also required to align

Other Comprehensive income with US GAAP.

Page 42

PGIM Loan Originator Manager Limited

Annual Report and Financial Statements

for the year ended 31 December 2025

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

19 Reconciliation from UK GAAP (FRS 102) to US GAAP (continued)

Uncertain tax positions

ASC 740, “Accounting for Uncertainty in Income Taxes” (“ASC 740”) clarifies the

accounting for uncertainty in income taxes recognised in the Company’s financial statements.

ASC 740 prescribes a recognition threshold and measurement attribute for the financial

statement recognition and measurement of a tax position taken or expected to be taken in a

tax return. ASC 740 requires that the Company determines whether it is more likely than not

that a tax position will be sustained upon examination including resolution of any related

appeals or litigation processes based on the technical merit of the position. In evaluating

whether a tax position has met the more likely than not recognition threshold, the Company

should presume that the position will be examined by the appropriate taxing authority that has

full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured to

determine the amount of benefit to recognise in the financial statements. The tax position is

measured at the largest amount of benefit that is greater than 50 per cent likely of being

realised upon settlement. The Company reviews and evaluates their tax positions in its major

jurisdictions where the Company is organised and where the Company makes investments.

Management has concluded there are no provisions for uncertain tax positions required to be

recorded as a result.

Classification differences between FRS 102 (UK GAAP) and US GAAP

In addition to the differences between FRS 102 and US GAAP related to the recognition and

measurement of transactions by the Company, there are other differences in the way items are

classified in the Statement of Financial Position and the Statement of Comprehensive

Income. Aside from the adjustments referred to above, these classification differences have

no significant impact on profit after tax or net assets of the Company.


				Page (s)
Officers and professional advisors				1

Strategic Report				2-4

Directors’ Report				5-7

Independent Auditors’ Report				8-11

Income Statement				12

Statement of Comprehensive Income				13

Statement of Financial Position				14

Statement of Changes in Equity				15

Notes to the Financial Statements				16-42