More Insurers Acquire Private Credit Shops as PGIM Buys Deerpath Capital
Posted on 05/02/2023
PGIM, the US$ 1.2 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU), has signed a definitive agreement to acquire a majority interest in Deerpath Capital Management, LP and its associated affiliates. Deerpath Capital is a U.S. private credit and direct lending manager focused primarily on financing private equity sponsor-backed companies in the lower middle market. Deerpath Capital currently has more than US$ 5 billion in assets under management. Deerpath Capital will retain its investment and operational independence as part of PGIM Private Capital (PPC) and will receive significant support from PGIM as part of the strategic partnership. Deerpath Capital co-founders James Kirby and Tas Hasan will continue to manage the business as chief executive officer and chief operating officer.
“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.”
The Deerpath team will work closely 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. Dickson will collaborate with Deerpath co-founders Kirby and Hasan to maximize the potential between the two companies’ complementary deal sourcing capabilities.
Since its inception in 2007, Deerpath Capital has deployed over US$ 8.8 billion of invested capital in more than 850 investments, across a broad range of industries and transaction types. Deerpath Capital has direct origination and execution capabilities throughout the United States with origination offices in New York, Boston, Chicago, Fort Lauderdale, and Los Angeles. In addition, it has offices in London, Seoul and Australia to support international investors.
Advisors
Sera Global served as exclusive financial advisor to Deerpath Capital, and Purrington Moody Weil LLP served as Deerpath’s legal counsel. BofA Securities served as exclusive financial advisor to Prudential, and Debevoise & Plimpton LLP served as legal counsel.
The closing of the transaction is subject to the receipt of all regulatory approvals.