PGIM to take full ownership of direct lending specialist

PGIM is moving to take full ownership of Deerpath Capital, a specialist in middle-market direct lending. This decision comes as the firm looks to increase its stake from the 75% interest it acquired in 2023.

Direct lending continues to draw interest from large asset managers as they expand their reach into private markets. By securing complete control of Deerpath Capital, PGIM intends to integrate the boutique firm more closely into its broader alternative investments division.

This shift reflects a broader trend among major institutional investors who seek to capture more value from private credit portfolios. As demand for yield in private markets remains strong, owning specialized lending platforms provides a distinct advantage in sourcing and managing middle-market loans.

PGIM currently manages assets across several strategies, and this consolidation is a step toward deepening its presence in the credit space. The move allows the firm to streamline operations while continuing to serve clients seeking exposure to direct lending.