Key Takeaways
- • Clearlake Capital Group has agreed to acquire Pathway Capital Management in a definitive agreement expected to close in Q1 2026, pending regulatory approval, creating a combined platform with $185 billion in assets under management.
- • Pathway Capital, founded in 1991, manages $95 billion across private equity, private credit, infrastructure, secondaries, and co-investments, nearly doubling Clearlake's current AUM and significantly expanding its institutional and wealth management reach.
- • Pathway will retain its brand and operate independently as Clearlake's dedicated investment solutions business, with its leadership team—James Chambliss, Richard Mazer, and Alex Casbolt—continuing to lead operations and integration.
- • The combined entity will expand Clearlake's global workforce to approximately 500 employees and leverage Pathway's data-driven insights alongside Clearlake's operational expertise to deliver an expanded suite of private market strategies.
- • Advisors include Evercore and BofA Securities (Clearlake), Kirkland & Ellis (Clearlake legal), UBS Investment Bank (Pathway financial advisor), and O'Melveny & Myers LLP (Pathway legal).
Summary
Clearlake Capital Group announced a definitive agreement to acquire Pathway Capital Management, marking a transformational expansion of its private markets platform. The transaction is expected to close in the first quarter of 2026, subject to regulatory approval. Upon completion, the combined entity will manage $185 billion in assets, establishing Clearlake as a significantly scaled diversified alternative asset manager with enhanced capabilities across multiple private market segments.
Pathway Capital, established in 1991, brings $95 billion in assets under management and a comprehensive track record spanning private equity, private credit, infrastructure, secondaries, and co-investments. The acquisition directly addresses growing institutional and wealth client demand for bespoke multi-investor private market strategies. By integrating Pathway's data-driven investment insights with Clearlake's operational and strategic expertise, the combined platform will offer an expanded range of offerings while maintaining Pathway's market presence and operational independence.
The transaction structure preserves Pathway's organizational identity and leadership continuity. Pathway will operate as Clearlake's dedicated investment solutions business, retaining its brand name while operating under the broader Clearlake umbrella. The firm's leadership team—including James Chambliss, Richard Mazer, and Alex Casbolt—will continue to lead Pathway through the integration process and guide future growth. This approach emphasizes client retention and operational stability while enabling synergies between the two organizations.
The combined organization will expand Clearlake's global headcount to approximately 500 employees, reflecting the substantial integration of Pathway's team with Clearlake's existing operations across multiple global offices. The acquisition demonstrates Clearlake's strategic commitment to scale within the competitive alternative asset management sector, particularly in the institutional and family office channels where demand for private market solutions continues to expand.
The transaction was advised by leading financial and legal professionals. Clearlake retained Evercore and BofA Securities as financial advisors, with Kirkland & Ellis serving as legal counsel. Pathway engaged UBS Investment Bank as its financial advisor and O'Melveny & Myers LLP as its legal advisor, ensuring comprehensive representation across both parties in the negotiation and execution process.
Pathway Capital, established in 1991, brings $95 billion in assets under management and a comprehensive track record spanning private equity, private credit, infrastructure, secondaries, and co-investments. The acquisition directly addresses growing institutional and wealth client demand for bespoke multi-investor private market strategies. By integrating Pathway's data-driven investment insights with Clearlake's operational and strategic expertise, the combined platform will offer an expanded range of offerings while maintaining Pathway's market presence and operational independence.
The transaction structure preserves Pathway's organizational identity and leadership continuity. Pathway will operate as Clearlake's dedicated investment solutions business, retaining its brand name while operating under the broader Clearlake umbrella. The firm's leadership team—including James Chambliss, Richard Mazer, and Alex Casbolt—will continue to lead Pathway through the integration process and guide future growth. This approach emphasizes client retention and operational stability while enabling synergies between the two organizations.
The combined organization will expand Clearlake's global headcount to approximately 500 employees, reflecting the substantial integration of Pathway's team with Clearlake's existing operations across multiple global offices. The acquisition demonstrates Clearlake's strategic commitment to scale within the competitive alternative asset management sector, particularly in the institutional and family office channels where demand for private market solutions continues to expand.
The transaction was advised by leading financial and legal professionals. Clearlake retained Evercore and BofA Securities as financial advisors, with Kirkland & Ellis serving as legal counsel. Pathway engaged UBS Investment Bank as its financial advisor and O'Melveny & Myers LLP as its legal advisor, ensuring comprehensive representation across both parties in the negotiation and execution process.
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