FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: Pathway Manager Update
RECOMMENDATION:
title
Pathway Ownership Update.
body
BACKGROUND:
Pathway Capital Management manages about $866 million in assets for SBCERA. The focus of the relationship is to make primary commitments, co-investments, and secondary transactions in private equity.
Pathway was founded in 1991 by Douglas Le Bon, James Reinhardt, Karen Jakobi, and Albert Clerc. Mr. Clerc retired from the firm in 2012. The firm's remaining co-founders, Mr. Le Bon, Mr. Reinhardt, and Mrs. Jakobi, own a meaningful amount of the business despite selling equity to the firm's other 19 partners over time. Given the desire to find a comprehensive solution to the ownership transition and facilitate future succession planning, Pathway considered several solutions that involved external capital for the first time in its history.
On November 12, 2025, Pathway announced signing a definitive agreement to be fully acquired by Clearlake Capital Group. Headquartered in Santa Monica, Clearlake is a global investment firm focused on private equity, private credit, and liquid credit. The firm was founded in 2006 and has more than $90 billion in assets under management.
Upon the close of the transaction, Pathway's co-founders will transition to Senior Advisors before fully transitioning out of the business over a six-to-twelve-month period. James Chambliss, Richard Mazer, and Alex Casbolt will continue to manage the day-to-day operations at Pathway. James Chambliss has worked on SBCERA's accounts for over 20 years, since the inception of the relationship. Bryan Nelson, our primary relationship coverage, has worked on the SBCERA account for over 10 years. We do not expect changes to our coverage team because of the transaction. The investment team and investment decision making will remain independent of Clearlake. Pathway will remain headquartered in Irvine with a global footprint....
Click here for full text