PGIM, the global asset management business of Newark-headquartered Prudential Financial, Inc., has signed an agreement to acquire the remaining 25% interest in Deerpath Capital, bringing its total ownership of the firm to 100%.
The transaction, which is subject to regulatory approval, builds upon PGIM’s initial acquisition of a 75% stake announced in May 2023.
The full acquisition merges Deerpath Capital’s lower middle market expertise with PGIM’s established core middle market and large cap capabilities. Following the transaction, the combined direct lending platform will manage $16 billion in assets under management (AUM) supported by 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,” Matt Harvey, PGIM’s global head of middle market direct lending, said. “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.”
The full ownership structure is designed to strengthen sponsor coverage, cross-segment coordination, and client service for both sponsored and non-sponsored businesses. Leadership continuity remains a cornerstone of the integration:
- James Kirby and Tas Hasan will continue to oversee the Deerpath investment process and committee governance for Deerpath funds while taking on broader leadership roles within PGIM Credit.
- Kirby will provide strategic thought leadership across middle market direct lending, while Harvey and Hasan will jointly lead the middle market direct lending platform.
- The transaction will not alter Deerpath’s core investment team capabilities, underwriting approach, or established processes.
“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,” Deerpath CEO James Kirby said. “We look forward to the next chapter as part of the comprehensive PGIM Credit platform.”
