PGIM, the $1.2 trillion global investment management business of Prudential Financial, is to acquire a majority interest in Deerpath Capital Management, a US private credit and direct lending manager focused primarily on financing private equity sponsor-backed companies in the lower middle market.
PGIM, the $1.2 trillion global investment management business of Prudential Financial, is to acquire a majority interest in Deerpath Capital Management, a US private credit and direct lending manager focused primarily on financing private equity sponsor-backed companies in the lower middle market.
Deerpath Capital, which currently has more than $5 billion in assets under management, will retain its investment and operational independence as part of PGIM Private Capital (PPC) and will receive significant support from PGIM as part of the strategic partnership.
Deerpath Capital co-founders James Kirby and Tas Hasan will continue to manage the business as chief executive officer and chief operating officer.
PGIM seeds, develops and manages a broad range of liquid and alternative strategies for some of the largest institutional investors globally. The partnership with Deerpath Capital enhances PGIM’s existing global alternatives offering, which is currently $237 billion in assets under management in strategies across real estate, private credit and other alternatives.
The Deerpath team will work closely with PGIM Private Capital’s Head of Alternatives Jeff Dickson, who oversees direct lending alongside PGIM Private Capital’s corporate mezzanine, energy mezzanine and sustainable power investment platforms. Dickson will collaborate with Deerpath co-founders Kirby and Hasan to maximise the potential between the two companies’ complementary deal sourcing capabilities.
Since its inception in 2007, Deerpath Capital has deployed over $8.8 billion of invested capital in more than 850 investments, across a broad range of industries and transaction types.
Sera Global served as exclusive financial advisor to Deerpath Capital, and Purrington Moody Weil LLP served as Deerpath’s legal counsel. BofA Securities served as exclusive financial advisor to Prudential, and Debevoise & Plimpton LLP served as legal counsel.
The closing of the transaction is subject to the receipt of all regulatory approvals.
