PGIM buys out Deerpath Capital, building a $16B direct lending platform
What's the deal? PGIMDealroom has a profile for this one. Try Dealroom → has agreed to acquire the remaining 25% interest in Deerpath Capital, bringing its ownership to 100%. The move follows PGIM's initial purchase of a 75% stake, announced in May 2023, and remains subject to regulatory approval.
What's the endgame? Full ownership adds Deerpath's lower middle market expertise to PGIM's existing core middle market and large cap capabilities. That gives the combined business $16B in assets under management and a team of 55 investment professionals, spanning the direct lending spectrum.
Why now? Many direct lenders have moved upmarket into large cap deals as they scale, leaving the traditional middle market underserved. PGIM is betting that segment stays valuable for borrowers and investors.
"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. Full ownership, he added, creates "a more coordinated and scaled direct lending platform while preserving the investment discipline that has underpinned Deerpath Capital's success."
What changes? Deerpath CEO James Kirby and Tas Hasan will keep leading Deerpath's investment process and committee governance while taking leadership roles in PGIM Credit. Harvey and Hasan will run the middle market direct lending platform together. The transaction will not alter Deerpath's investment team, process, or underwriting approach.
PGIM is the global asset management arm of Prudential FinancialDealroom has a profile for this one. Try Dealroom →, with $1.4 trillion in assets under management across 40 offices in 20 countries.
The signal: Consolidation in private credit is pushing asset managers to cover borrowers of every size. By taking full control of Deerpath, PGIM positions itself among a small group with capabilities across the entire direct lending range — a hedge against rivals crowding into large cap deals.
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