Clearlake to acquire Pathway, expands private markets reach in US

Clearlake Capital has struck a deal to buy Pathway Capital Management, a move that substantially enlarges its private markets offering and deepens its capabilities across private credit, secondaries and co-investments. The transaction, agreed on November 12, 2025, is set to close in Q1 2026 pending regulatory sign-off and routine conditions.

The tie-up will push the combined group’s scale and product breadth: Clearlake’s stated assets under management will rise to about $185 billion after adding Pathway’s roughly $95 billion in assets. The combination is framed as a distribution and origination play — accelerating private credit sourcing while widening access to bespoke private market strategies for both institutional and wealth channels.

Under the terms, which were not disclosed, Pathway will keep its name and run as an independent investment solutions arm inside the enlarged platform. The boutique’s senior team — James Chambliss, Richard Mazer and Alex Casbolt — will remain in leadership roles, preserving the data-driven investment processes that have underpinned Pathway’s track record since its 1991 founding.

Clearlake’s co-founders, José E. Feliciano and Behdad Eghbali, said the move is intended to deliver more tailored private market access and deeper analytics to clients across cycles. Management expects headcount following close to be near 500 employees globally, reflecting the enlarged advisory, origination and distribution footprint.

Strategically, the acquisition reflects a wider industry pattern: large alternative managers are buying specialists to accelerate scale in private credit and secondaries while servicing growing demand from family offices, private banks and pension funds. Private credit has been one of the fastest-growing corners of alternatives over the past decade, and many allocators now expect credit and bespoke private market vehicles to play a larger role in diversified portfolios.

From a market standpoint, the deal could improve Clearlake’s ability to offer multi-channel solutions — spanning commingled funds, separately managed accounts and tailored co-investment vehicles — which are increasingly sought by institutional investors in Europe and North America. For Pathway’s clients, the promise is enhanced operational resources and broader distribution without disruption to investment decision-making.

Closing remains subject to customary regulatory approvals and closing conditions, with integration plans focused on maintaining Pathway’s investment independence while aligning distribution, product development and client servicing.