New Strategy Creates Opportunity for
Significant Expansion in Middle Market Lending
PITTSBURGH and LOS
ANGELES, May 6, 2024 /PRNewswire/ -- The PNC
Financial Services Group, Inc. ("PNC"), one of the largest
diversified financial institutions in the U.S., and the TCW Group,
Inc. ("TCW"), a leading global asset manager, today announced they
are partnering to deliver private credit solutions to middle market
companies.
The PNC and TCW partnership formalizes and expands more
than 15 years of collaboration between PNC and TCW, combining both
institutions' credit expertise: TCW's 23-year track record of
successfully originating, underwriting and managing direct lending
portfolios; and the strengths of PNC's national client
relationships and its leading middle market lending franchise. The
new joint strategy will focus primarily on directly originated,
senior secured cash-flow and asset-based loans to both sponsored
and non-sponsored middle market companies.
"We are thrilled to partner with PNC to expand our direct
lending capabilities and provide financing to a critical segment of
U.S. companies, as well as offer a differentiated investment
solution for clients," said Katie
Koch, president and CEO of TCW. "PNC and TCW have a long
history of developing creative solutions across a number of joint
financings, and this partnership represents an exciting opportunity
to capture significant market share of the expanding private credit
market by leveraging the strengths of both our firms."
"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,"
said William S. Demchak, chairman
and chief executive officer of PNC.
PNC and TCW will establish a team to manage all of the
strategy's investment activities including origination,
underwriting, and portfolio management. The platform is targeted to
have $2.5 billion in investor equity
capital available to invest in its first year, which will be
supported by anchor investments from PNC and Nippon Life, TCW's
strategic partner and shareholder. Investment activity is
expected to commence in the Fall of 2024.
"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," said
Rick Miller, CIO of TCW Private
Credit and chair of the new joint private credit partnership.
About The TCW Group
TCW is a leading global asset management firm with a broad range
of products across fixed income, alternative investments, equities,
and emerging markets. With over half a century of investment
experience, TCW today manages approximately $200 billion in client assets. Through its ETF
suite, MetWest Funds and TCW Funds, TCW manages one of the largest
fund complexes in the U.S. TCW's clients include many of the
world's largest corporate and public pension plans, financial
institutions, endowments and foundations, as well as financial
advisors and high net worth individuals. For more information,
please visit www.tcw.com.
About PNC
The PNC Financial Services Group, Inc. is one of the largest
diversified financial services institutions in the United
States, organized around its customers and communities for strong
relationships and local delivery of retail and business banking
including a full range of lending products; specialized services
for corporations and government entities, including corporate
banking, real estate finance and asset-based lending; wealth
management and asset management. For information about PNC, visit
www.pnc.com.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains forward-looking statements as
defined under the U.S. federal securities laws. Forward-looking
statements are typically identified by words such as "believe,"
"plan," "expect," "anticipate," "see," "look," "intend," "outlook,"
"project," "target", "forecast," "estimate," "goal," "will,"
"should" and other similar words and expressions, which generally
are not historical in nature. Forward-looking statements are
necessarily subject to numerous assumptions, risks and
uncertainties, which change over time, and which could cause actual
future results or events to differ, possibly materially, from those
anticipated in these forward-looking statements. These risks
include economic, political, regulatory and legal changes;
leverage, valuation and interest rate risk; changes in investment
advisory, administration and other similar services arrangements;
changes in the environment for fundraising generally or for
specific strategies; or the entry into definitive documentation. As
a result, we caution against placing undue reliance on any
forward-looking statements. These forward-looking statements speak
only as of the date of this press release, and we do not assume any
duty and do not undertake any obligation to update them.
The information contained in this press release has been
provided solely for informational purposes and is not an offer to
buy or sell or a solicitation of an offer to buy or sell any
securities or any investment advisory services of any kind.
CONTACTS
PNC
Whitney Wilson
(214) 871-1209
whitney.wilson@pnc.com
THE TCW GROUP
Doug
Morris
(213) 244-0509
doug.morris@tcw.com
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SOURCE The PNC Financial Services Group, Inc.