Deerpath Capital Management announced the closing of its Fifth Fund, accepting commitments of $1.1 billion of equity capital from investors, exceeding its initial target. Fund 5 is part of Deerpath Capital's senior debt financing platform that has deployed more than $4 billion to date. Combined with debt financing raised for certain levered vehicles with the Fund, Deerpath raised over $2 billion in total capital available for deployment for the Fund.
Fund 5's closing marks another fundraising record for Deerpath and is the firm's largest fundraise in Europe and Asia to date. Deerpath was pleased to welcome over 50 limited partners from around the globe into Fund 5, including Australia, Canada, Germany, Lebanon, Luxembourg, Switzerland, South Korea and the United Kingdom.
Tas Hasan, Partner and Chief Operating Officer, commented: "We are very proud of the success of this fundraise, which was oversubscribed despite a challenging environment due to COVID-19. We are pleased to see increased interest from new investors globally combined with the sustained support from our existing LP base. We have steadfastly maintained our initial investment thesis that we implemented nearly 14 years ago of prioritizing safety in all economic climates to protect against the unexpected. This strategy has been time tested and provides clear differentiation for Deerpath within the direct lending market."
To date, Deerpath has committed approximately 75% of Fund 5 to a large pool of portfolio companies, wholly diversified by industry, geography and sponsor. Like its predecessor funds, Fund 5 pursues first lien, senior debt financing to lower-middle market companies ($50 million to $100 million in Enterprise Value) in the U.S., emphasizing investments high quality private equity sponsor-backed companies with longevity and proven profitability in their respective markets and highly cash generative business models. Deerpath's investment model is designed to deliver sturdy returns while prioritizing capital preservation in any economic climate.
Founded in 2007 by Gary Wendt, James Kirby, and John Fitzgibbons, Deerpath Capital Management, LP is a leading provider of customized, cash-flow based senior debt financing to lower-middle market companies across diverse industries.