IVCA Feature: New Member Profile of Deerpath Capital Management
August 20, 2025
As the new member participants in the Illinois Venture Capital Association (IVCA) keeps expanding, the current membership are given new opportunities for networking, in addition to optimizing support and partnerships, which leads to guidance and new ideas for Venture Capital, Private Equity and support industries.
The latest new member is the firm of Deerpath Capital Management, who describe themselves as “a leading provider of cash-flow based senior debt financing to lower middle market companies.”
The following is a Q&A profile with Deerpath Capital Management, which explores the firm’s background and their expectations for interacting with the IVCA.
IVCA: What is a brief history of and background of Deerpath Capital Management?
Deerpath Capital Management: Deerpath Capital is a private credit firm founded in 2007 with a singular focus on providing first-lien, senior-secured loans to U.S.-based, sponsor-backed companies with an Enterprise Value less than $250M and EBITDA less than $25M. Since inception, our disciplined commitment to this market segment, combined with the scale of our origination platform, has driven more than $13 billion in capital invested across 1,100+ transactions.
From the start, our founders built Deerpath on a simple premise: a well-diversified portfolio of loans to high-quality borrowers can deliver safety in an uncertain world … a reliable solution for investors who prioritize capital preservation and consistent income generation.
As of March 31, 2025, Deerpath manages $8.4B in AUM and employs 110 professionals across regional investment offices in the U.S. and investor relations hubs around the globe. Since 2023, we have been majority-owned by PGIM, the investment management arm of Prudential Financial. The partnership combines Deerpath’s direct-lending expertise with PGIM’s global reach, broad asset management capabilities, and growth resources, while we continue to operate independently.
IVCA: Why did the firm decide to join the Illinois Venture Capital Association?
Deerpath: As Deerpath’s name comes from Deerpath Lane in Lake Forest and Chicago is our largest office … with one-third of the employee base … we felt that we should be active and contributing members to IVCA, the pre-eminent private capital association in Illinois. We look forward to networking with other members and being active and contributing members.
IVCA: As you manage investors, borrowers, equity sponsors and company management teams, what is unique about your firm structure and approach to Private Equity?
Deerpath: Deerpath is one of the leading lenders in the Lower Middle Market and specializes in directly originating loans to companies backed by Private Equity sponsors. Our approach centers on relationships, proactively calling on Private Equity sponsors and bankers to identify new investment opportunities.
Having executed the same investment strategy in the same market for 18 years, we have built a strong reputation as a reliable lending partner. Our track record has yielded an extensive network of current and former portfolio companies and deep, enduring relationships with Private Equity sponsors and bankers active in our market segment. Deerpath can hold up to $150M per transaction in its managed funds.
IVCA: The firm stands behind the term ‘sustainable investing.’ How does that concept affect your decision-making process for investment strategy?
Deerpath: Deerpath has maintained a fully implemented Sustainable Investment Policy … AKA the ‘Policy’ … since 2017. We integrate sustainability considerations into both due diligence and ongoing monitoring of portfolio investments, recognizing that thoughtful incorporation of sustainability factors can help identify risks, uncover opportunities, and support strong long-term financial performance.
The Policy is regularly updated to reflect best practices, with the most recent revision released in June 2024. Notable improvements include … ONE, an upgraded responsible investment framework for transactions where Deerpath is the sole or lead lender; TWO, a revised Exclusions Policy; THREE, enhanced reporting standards to improve transparency for investors; and FOUR, formation of the Deerpath Sustainable Investment Committee … AKA the ‘Committee’ … responsible for reviewing the Policy at least annually as part of its formal governance process.
IVCA: On your website, the firm lists five types of Transactions that you focus on … Change of Control, Growth Capital, Debt Refinancing, Acquisition Financing and Recapitalizations. How do you work to reduce the complexities of these types, to clear language for investors or borrowers?
Deerpath: Deerpath lends to borrowers backed by Private Equity sponsors and focuses on supporting sponsors throughout the life cycle of their investments. While many of our sponsors pursue industry consolidations, we stand out in those transactions by being able to increase our hold size more than most other lenders. Our approach centers on cultivating enduring, mutually beneficial relationships with sponsors and borrowers, growing alongside them and sustaining our earnings stream by supporting their success from acquisition through exit.
IVCA: How does the firm’s investment philosophies inform the general philosophy of the day-to-day working environment?
Deerpath: Deerpath has a safety-first investment philosophy whereby we aim to take advantage of the natural benefits of senior loans, safety, cash income and consistent income. Whenever possible, we aim to make the choice that maintains our low risk of loss.
While the original four Partners were instrumental in growing Deerpath, they carefully assembled a strong team of experienced professionals to operate the business on a day-to-day basis. Eventually, the current leaders of the Firm’s functional areas – Origination, Underwriting, Portfolio Reporting & Analysis, Restructuring, Investor Relations, Treasury, Accounting & Loan Operations – will be the next generation of Deerpath management and continue to carry on our mission and core values.
Culturally, the same principles that guide our investment decisions guide our daily work with consistency over cycles, selectivity, collaboration, measured growth, and high integrity.
In short, the way we invest is the way we operate … focused, disciplined, and aligned. That consistency has shaped not only our track record, but also a working environment that rewards long-term thinking, precision in execution, and a shared commitment to doing things the right way.
IVCA: What does Deerpath Capital Management hope to achieve in their interaction with the VC/PE community within the IVCA?
Deerpath: Build connections with industry peers and take more of active role in advancing private capital in Illinois and the broader nation. Additionally, we would welcome the opportunity to access the IVCA Scholars program for future interns at Deerpath.
For the website of Deerpath Capital Management, click here.
The next IVCA Luncheon event will be ‘Navigating Policy and Perception: A Fireside Chat with the American Investment Council (AIC)’ For details and registration info, click here.