PGIM, the $1.2 trillion global investment management business of Prudential Financial Inc., has bought a majority interest in Deerpath Capital Management LP, 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 $5 billion in assets under management. Deerpath Capital will retain its investment and operational independence as part of PGIM Private Capital and will receive support from PGIM as part of the partnership. Deerpath Capital co-founders James Kirby and Tas Hasan will continue to manage the business as chief executive officer and chief operating officer. The deal looks to drive PGIM’s existing global alternatives offering, which is currently $237 billion in assets under management in strategies across real estate, private credit and other alternatives.

“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,” comments Matt Douglass, president and CEO of PGIM Private Capital.

Sera Global served as financial advisor to Deerpath Capital, and Purrington Moody Weil LLP served as Deerpath’s legal counsel. BofA Securities served as financial advisor to Prudential, and Debevoise & Plimpton LLP served as legal counsel.