By Matt Tracy
WASHINGTON (Reuters) – U.S. private equity firm Deerpath Capital Management raised more than $2.8 billion for its sixth private credit fund that will finance companies with enterprise values between $50 million and $150 million in healthcare, IT and business services.
The fundraising began in September 2021 and ended with a final fundraise on Feb. 1. Funds were raised globally from asset managers, private insurance companies and both public and private pension funds.
Deerpath’s most recent fund raised more than $2 billion in 2021. The lender intends to begin fundraising for a seventh fund in the second quarter, a Deerpath spokesperson said.
Deerpath’s fundraising comes amid worries about an economic recession and as the Federal Reserve continues to hike interest rates in its fight against inflation.
An economic downturn raises obstacles for small and mid-sized companies to borrow money. This has created opportunities for private credit specialists such as Deerpath to step in.
Founded in 2007, Deerpath has about $6 billion in assets under management.
(Reporting by Matt Tracy; editing by Shankar Ramakrishnan)