Clearlake to Double Assets With Nearly $1 Billion Deal

Core Insights - Clearlake Capital Group is acquiring Pathway Capital Management for nearly $1 billion, which will approximately double its assets under management to $185 billion, positioning it among the largest private-equity firms [2][3][6] Group 1: Acquisition Details - The acquisition will bring Clearlake's assets under management to $185 billion, establishing it just below the top 10 firms by assets [3] - Pathway Capital Management has about $95 billion in assets under management, with a portion generating lower fees than traditional private equity or credit [3] - The deal will allow Clearlake to enter new business areas, including secondaries and infrastructure, and potentially reach the private-wealth market [4] Group 2: Market Context - Institutional investors are slowing allocations to private equity, prompting firms to either scale up or remain focused to compete effectively [5] - Clearlake's strategy to grow is aimed at catering to large sovereign-wealth funds that prefer to invest across various asset classes [6] Group 3: Company Background - Clearlake Capital Group, founded in 2006, focuses on investments in technology, industrial, and consumer sectors, and has returned over $20 billion to investors since 2021 [7] - Pathway Capital Management, established in 1991, provides customized portfolios for institutional investors and wealth advisers, and operates funds for co-investing and secondary market private-equity stakes [8]