PGIM to Buy Majority Stake in Deerpath Capital to Strengthen Alternatives Offering

PGIM, the $1.2 trillion global investment management business of Prudential Financial Inc., has bought a majority interest in Deerpath Capital Management, a private credit and direct lending manager focused primarily on financing private equity sponsor-backed companies in the lower middle market.

Financial terms of the deal were not revealed.

The deal looks to drive PGIM’s existing global alternatives offering, which is currently $237 billion in assets under management across real estate, private credit and other alternative assets.

With more than $5 billion in assets, Deerpath Capital will retain its investment and operational independence as part of PGIM Private Capital and will receive support from PGIM.

Co-founders James Kirby and Tas Hasan will continue to manage Deerpath Capital as CEO and COO, respectively.

“We originate billions of dollars of loans every year, and the combination of Deerpath’s lower middle market capability and PPC’s focus on the core middle market will help materially accelerate the growth of both platforms going forward,” said Matt Douglass, president and CEO of PGIM Private Capital.

The Deerpath team will work 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.

Since its inception in 2007, Deerpath Capital has deployed more than $8.8 billion of invested capital in more than 850 investments.