PGIM has bolstered its $237bn global alternatives platform and private credit capabilities with the acquisition of a majority interest in private credit manager Deerpath Capital Management and its associates.
As part of the deal, subject to regulatory approval, the $5bn US-based firm will join PGIM Private Capital (PPC) but retain its investment and operational independence while receiving support from PGIM as part of the strategic partnership.
Deerpath Capital primarily focuses on financing private equity sponsor-backed companies in the lower middle market, while PGIM's direct lending business focuses on the core middle market.
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"This partnership with Deerpath Capital reflects our ambition to further grow our alternatives platform," said David Hunt, president and CEO of PGIM.
"It complements PGIM Private Capital's existing direct lending capabilities by adding expertise in the lower middle market-sponsored space, further enhancing the direct origination platform of PGIM Private Capital's core middle market-focused direct lending platform."
PGIM Private Capital's head of alternatives Jeff Dickson, will work closely with the Deerpath team and co-founders James Kirby and Tas Hasan, who will remain CEO and COO of the company, to complement the two companies' deal-sourcing capabilities.
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Kirby added: "PGIM Private Capital has been a global leader in debt investing for more than 50 years and is an ideal strategic partner for Deerpath.
"Their deep understanding of the asset management business, global footprint and distribution network will help Deerpath grow our direct lending platform, while allowing us to preserve our investment and operational independence."
