During a fault or large motor starting, the voltage at the stator can drop to nearly zero, which cuts off the voltage supply to the voltage regulator and exciter. With a PMG, the pilot field of the exciter is powered even with no stator output voltage. This greatly improves generator performance for motor starting, etc. This is especially helpful for standby and emergency generators.
Voltage Regulator works basically the same. Takes ac in and gives dc voltage out that goes to the field of the exciter, generally a rotating brushless exciter.