NEWARK, N.J., July 27 — PGIM has agreed to acquire the remaining 25% interest in Deerpath Capital; bringing the firm’s ownership to 100%. This transaction follows PGIM’s initial acquisition of a 75% stake announced in May 2023 and is subject to regulatory approval.
The acquisition will strengthen PGIM’s direct lending platform by adding Deerpath Capital’s lower middle market expertise to PGIM’s existing core middle market and large cap capabilities. With the addition of Deerpath’s lower middle market platform, PGIM will be positioned among a select group of asset managers with capabilities across the direct lending spectrum, with a combined $16B in AUM across a team of 55 investment professionals.*
“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. “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.”
The comprehensive platform will allow for continued support of private equity sponsored and non-sponsored businesses as they grow and transition across the middle market and large cap market over time. More broadly, full ownership is expected to strengthen sponsor coverage and coordination while supporting more tailored direct lending solutions across borrower size segments and cohesive investor distribution and client service.
Deerpath Capital CEO James Kirby commented: “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. 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.”
James Kirby and Tas Hasan will continue to lead the Deerpath investment process and investment committee governance for Deerpath funds while assuming leadership roles in PGIM Credit.
James Kirby will contribute investment strategy thought leadership across middle market direct lending. Matt Harvey and Tas Hasan will lead the middle market direct lending platform together. The transaction will not alter Deerpath’s existing investment team capabilities, investment process or approach to underwriting.