#United States #Private Equity #Santa Monica #Clearlake Capital #Pathway Capital

Clearlake Capital to Acquire Pathway Capital Management

In a significant move in the financial sector, Clearlake Capital Group, L.P., a notable global investment firm, has recently announced its plans to acquire Pathway Capital Management. This strategic acquisition aims to bolster Clearlake's capabilities in the private markets space, thus enhancing its service offerings to institutional and wealth management clients.

The acquisition reflects Clearlake's ambition to expand its integrated platforms that encompass various aspects of private equity and credit markets. While financial specifics of the deal have not been revealed, it is expected to close in the first quarter of 2026, pending necessary regulatory approvals.

Founded in 1991, Pathway Capital Management has a robust reputation as a provider of private market solutions, boasting more than $95 billion in assets under management. With extensive expertise across private equity, private credit, infrastructure, secondaries, and co-investments, Pathway has established itself as a key player in providing tailored investment strategies.

José E. Feliciano and Behdad Eghbali, the Co-Founders and Managing Partners at Clearlake, expressed their enthusiasm regarding this acquisition, noting, "We are thrilled to welcome Pathway to the Clearlake family as we further expand our leadership in alternative investments. This partnership is designed to drive performance and deliver enhanced outcomes for clients across market cycles."

The partnership is set to leverage Pathway's strong track record and global reach while allowing it to operate independently as Clearlake's investment solutions arm. This duality will provide an avenue for both firms to expand their influence within institutional and private wealth channels, ensuring clients have robust access to a variety of investment options and deeper market insights.

Pathway’s leadership team, including James Chambliss, Richard Mazer, and Alex Casbolt, will retain their roles and maintain the operational integrity of the business. They expressed their excitement about joining forces with Clearlake, emphasizing how this merger aligns with their culture and goals of delivering innovative solutions tailored to client needs. James Chambliss commented, "We are excited to join a world-class alternative asset manager, and we will now bring our expertise to an even broader client base through Clearlake's expansive private markets platform."

The transaction places Clearlake in a position to accelerate its growth trajectory, moving its total assets under management to approximately $185 billion. As financial demands evolve within the investment landscape, this merger strategically positions Clearlake to better address specific needs through bespoke private market strategies.

With the need for alternative investments growing steadily, especially in recent years, Clearlake's acquisition of Pathway serves as an essential response to market demands, ensuring they can offer diversified, high-performance investment options for their clients.

As the integration aims to scale Clearlake’s business operations significantly, it will fortify its origination capabilities in the private credit sector, enhancing the overall service portfolio geared towards servicing institutional clients effectively.

In summary, the upcoming merger between Clearlake Capital Group and Pathway Capital Management promises a significant impact on the private equity landscape. Their combined expertise is geared towards not just expanding their service offerings but also improving client outcomes in an increasingly complex investment environment. As the transaction approaches closing in 2026, investors and market watchers alike will be keen on developments stemming from this partnership that aims to reshape alternative investments for the future.