Deerpath Capital Management, LP said it has closed Deerpath Fund VII, with the flagship vehicle exceeding its $2 billion equity target and, together with anticipated leverage, expected to support roughly $3.5 billion of total investable capital. The firm focuses on cash flow-based senior debt financing for sponsor-backed U.S. lower-middle-market companies.
The new fund extends Deerpath’s 18-year history of financing private equity-backed businesses across industries, with the firm saying it has invested more than $14 billion across 1,200 transactions since its 2007 inception, maintaining a dedicated focus on lower-middle-market senior direct lending. Deerpath also pointed to its programmatic CLO activity as a platform advantage, noting CLO issuance totaling $1.6 billion across three transactions in 2025, which it said supports efficient capital financing and deployment.
Deerpath said Fund VII drew commitments from more than 70 limited partners spanning the U.S., Canada, the UK, Germany, Switzerland, and Korea, with participation from both existing and new investors. The firm attributed its ability to consistently source and structure senior secured loans to its origination network, regional underwriting teams, and longstanding sponsor relationships.
In addition, Deerpath cited 2025 industry recognition from Octus, 9fin, and KBRA Direct Lending Deals, along with being named among GrowthCap’s top private credit firms of the year.
KEY QUOTES:
“The success of Fund VII reflects the strong, long-term partnerships we’ve built with our global investor base. Investors continue to value our disciplined underwriting, private equity-style diligence, careful monitoring, and consistent performance throughout market cycles. We thank our partners for their continued trust and support.”
Antonella Napolitano, Global Head of Investor Relations and Capital Formation
