PGIM to Acquire Remaining 25% Stake in Direct Lender Deerpath Capital
PGIM has agreed to acquire the remaining 25% stake in Deerpath Capital, completing its ownership of the lower-middle-market direct lender and further expanding its private credit platform.
The transaction follows PGIM’s acquisition of an initial 75% interest in Deerpath in May 2023. Upon closing, Deerpath’s lower-middle-market lending business will be fully integrated with PGIM’s existing middle-market and large-cap direct lending operations, creating a platform spanning nearly the entire direct lending market.
Combined, the businesses oversee approximately $16 billion in assets and employ 55 investment professionals, as of March 31.
“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.
James Kirby, chief executive officer of Deerpath Capital, said PGIM’s global scale and investment capabilities make it “an ideal home” for the firm.
Following the acquisition, Kirby and Tas Hasan will continue overseeing Deerpath’s investment process and investment committee while assuming broader leadership roles within PGIM Credit. Hasan will co-lead PGIM’s middle-market direct lending platform alongside Harvey, while Deerpath’s investment team, underwriting process and investment philosophy will remain unchanged.
The acquisition caps a year of expansion for PGIM’s private credit business. In recent months, the firm launched private credit collective investment trusts for defined contribution retirement plans and committed up to $1 billion over two years to private credit secondaries. Deerpath also closed its seventh flagship fund in late 2024, raising more than $2 billion in equity commitments and approximately $3.5 billion in total investable capital.
PGIM, the asset management business of Prudential Financial, manages approximately $1.4 trillion in assets globally.
Pictured l to r: Matt Harvey and James Kirby