Pathlight Capital closed its third fund, Pathlight Capital Fund III LP (Fund III) as well as the initial tranche of its Evergreen vertical, Pathlight Capital Evergreen Fund LP (together with Fund III, “the fund”). The parallel fund entities secured a combined $860.3 million of capital commitments. Including separately managed accounts, Pathlight now maintains more than $2.7 billion in assets under management.
The fund will continue to pursue the strategy employed by Pathlight’s previous funds of providing companies with asset-based financing solutions for working capital, refinancing, growth, acquisition, dividend and turnaround strategies. The fund received capital commitments from a group of investors including insurance companies, a healthcare system, and corporate and public pension funds.
“Since 2018, Pathlight’s capital deployment has meaningfully outpaced expectations, which I believe is the result of a number of factors, including our growing team and established market presence,” Daniel Platt, founder and CEO of Pathlight Capital, said. “This necessitated a third fundraise in less than five years. I am very grateful for our hardworking team and Pathlight’s supportive limited partners for making this possible. We maintain our confidence in expanding the scale and breadth of our marketplace.”
“The ability to raise a third flagship fund as well as a new Evergreen entity on the heels of our Fund II capital raise was driven by strong support from both existing and new investors who recognize the merit of Pathlight’s differentiated approach to current income and attractive risk-adjusted returns,” Stephanie Fatzinger, managing director of investor relations at Pathlight Capital, said. “Our conviction and excitement in Pathlight’s mission to create value for investors is stronger than ever, evidenced by Pathlight’s significant GP commitment and employee participation in the fund.”
Kirkland & Ellis provided legal counsel, led by investment funds partners Sean Hill and Richard Shamos, for this transaction.
