PNC and TCW partner on private credit platform
PNC Financial Services Group and US asset manager The TCW Group are launching a new private credit platform dedicated to financing mid-market companies.
PNC, which offers a range of financial services in the US, including lending products, wealth management and asset management, said that the partnership formalises and expands more than 15 years of collaboration between the two firms.
It noted TCW’s 23-year track record in direct lending and the strengths of its own national client network and mid-market lending franchise.
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The partnership will focus primarily on directly originated, senior secured cash-flow and asset-based loans to both sponsored and non-sponsored mid-market companies.
“We are thrilled to partner with PNC to expand our direct lending capabilities and provide financing to a critical segment of US companies, as well as offer a differentiated investment solution for clients,” said Katie Koch, president and chief executive 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.”
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PNC and TCW will establish a team to manage all of the strategy’s investment activities including origination, underwriting and portfolio management.
The new joint venture is aiming to raise $2.5bn (£2bn) in investor equity capital 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 autumn of this year.
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“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.
