FOLLOW US

Like a vessel catching stronger-than-expected winds, Deerpath Capital Management LP has sailed past its fundraising mark, closing its seventh fund above expectations and reinforcing its position in the private credit market.

The New York–based firm said Thursday that it has finalized Deerpath Capital 7th Fund, exceeding its $2 billion equity goal. The capital will be deployed to finance private equity-backed companies spanning a wide range of industries, the firm said. Deerpath was advised on the fundraise by Purrington Moody Weil LLP.

Billions in Firepower

Deerpath said Fund VII, when combined with anticipated leverage, is expected to provide approximately $3.5 billion in total investable capital, creating a substantial pool to support lower middle-market borrowers.

The fund attracted commitments from more than 70 limited partners, drawing backing from both returning and first-time investors across the United States, Canada, the United Kingdom, Germany, Switzerland and Korea, according to the firm’s statement.

Investor Confidence Across Cycles

Antonella Napolitano, Deerpath’s global head of investor relations and capital formation, said the strong close underscores the durability of the firm’s investor relationships.

“The success of Fund VII reflects the long-term partnerships we have built with our global investor base,” Napolitano said, adding that investors continue to favor Deerpath’s disciplined underwriting, private equity-style due diligence, active portfolio monitoring and consistent performance through varying market conditions.

She thanked investors for their continued confidence and support.

Lower Middle Market Focus

Deerpath said its regionally structured underwriting teams and deep sponsor relationships allow the firm to consistently source and structure senior secured loans in the lower middle market, a segment often underserved by traditional lenders.

Founded in 2007, Deerpath specializes in cash-flow-based senior debt financing for sponsor-backed lower middle-market companies in the U.S. Since inception, the firm has invested more than $14 billion across over 1,200 transactions, primarily in senior direct lending.

The firm currently manages about $9 billion in assets, according to the statement.

A Diverse Lending Footprint

According to Deerpath’s website, the firm has financed private equity sponsors behind acquisitions ranging from an eye care group purchasing organization to a site sanitation and temporary services infrastructure provider, as well as an IT managed services company.

Full details regarding the legal team at Purrington Moody Weil LLP advising Deerpath on the fund were not immediately available.