PGIM announced Monday an agreement to acquire the remaining 25% stake in Deerpath Capital Management L.P., a private credit firm focused on the lower-middle market. PGIM acquired a 75% stake in the firm in 2023.
PGIM stated it aims to strengthen its direct lending capabilities across the lower-middle market by integrating Deerpath Capital into PGIM Credit.
“As direct lenders have scaled, many have moved into the large-cap segment. We continue to believe the traditional middle market remains an attractive and important segment for borrowers and investors,” said Matt Harvey, PGIM’s global head of middle market direct lending, in a statement. “By moving to full ownership of Deerpath Capital, we are creating a more coordinated and scaled direct lending platform while preserving the investment discipline that has underpinned Deerpath Capital’s success. That combination better positions us to serve sponsors, borrowers and investors across the direct lending spectrum.”
Deerpath, founded in 2007, specializes in cash-flow-based senior debt financing for sponsor-backed companies. The firm has invested more than $15 billion across more than 1,200 investments. It managed more than $9 billion in assets as of March 31.
The firm will continue to retain its existing investment team and will continue to be led by CEO James Kirby and Chief Operating Officer Tas Hasan, who will also assume leadership roles at PGIM Credit.
“As one of the world’s leading asset managers, PGIM is an ideal home for Deerpath, combining deep capital resources, asset management expertise and global relationships,” Kirby said in a statement. “Tas and I have developed an excellent working relationship with our colleagues at PGIM, and we look forward to the next chapter as part of the comprehensive PGIM Credit platform.”
Tags: PGIM, Private Credit