The PNC Financial Services Group, one of the largest diversified financial institutions in the US, and the TCW Group, a leading global asset manager, have announced a strategic partnership aimed at delivering private credit solutions to middle market companies.
The partnership between PNC and TCW aims to combine their respective expertise in credit solutions to cater to the financing needs of middle market companies.
PNC Financial Services Group stands as one of the largest diversified financial institutions in the United States. With a robust national client base and a renowned middle market lending franchise, PNC boasts extensive experience in providing financial solutions to a wide array of clients.
TCW Group is a prominent global asset management firm known for its comprehensive suite of products spanning fixed income, alternative investments, equities, and emerging markets. With over half a century of investment experience, TCW manages approximately $200bn in client assets and serves a diverse clientele, including corporate and public pension plans, financial institutions, endowments, foundations, financial advisors, and high-net-worth individuals.
The collaboration formalizes and expands over 15 years of collaboration between PNC and TCW. The joint strategy will primarily focus on directly originated, senior secured cash-flow and asset-based loans to both sponsored and non-sponsored middle market companies. The partnership aims to leverage TCW’s 23-year track record in originating, underwriting, and managing direct lending portfolios, alongside PNC’s national client relationships and leading middle market lending franchise.
The new joint strategy will see the establishment of a dedicated team to manage all investment activities, including origination, underwriting, and portfolio management. It is targeted to have $2.5 billion in investor equity capital available to invest in its first year, with anchor investments from PNC and Nippon Life, TCW’s strategic partner and shareholder. Investment activity is expected to commence in the Fall of 2024.
William S. Demchak, chairman and chief executive officer of PNC, said, “Combining the power and legacy of PNC’s broad lending capabilities with TCW’s private credit group will deliver significant benefit to companies seeking growth opportunities.”
Rick Miller, CIO of TCW Private Credit and chair of the new joint private credit partnership, said, “We are very excited to announce this new business strategy, which represents a natural extension of TCW’s existing Direct Lending and Rescue Fund strategies with an opportunity to offer investors access to a broader segment of the middle market.”
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