Clearlake Capital has agreed to acquire investment manager Pathway Capital Management, a move that will more than double its assets under management to $185bn and strengthen its position across private credit, secondaries, and co-investments.

The deal terms were not disclosed, though the Wall Street Journal reported that Clearlake is paying about $1bn for the Irvine-based manager, which oversees more than $95bn across private equity, private credit, and infrastructure mandates.

Clearlake said the acquisition will expand its reach among institutional and wealth clients, reflecting broader industry efforts to grow private markets distribution beyond traditional LP channels.

Pathway will retain its brand and continue operating independently as Clearlake’s investment solutions business. Its leadership team will include James Chambliss, Richard Mazer, and Alex Casbolt.

The transaction is expected to close in the first quarter of 2026 and will bring Clearlake’s global headcount to nearly 500 employees.

Higher interest rates and slower dealmaking have pushed major buyout firms to diversify into credit, infrastructure, and other alternative investment strategies, increasing competition for scaled platforms like Pathway.

Evercore and BofA Securities advised Clearlake. UBS Investment Bank advised Pathway.

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