Nippon Life commits $3.25bn to TCW Alternative Credit Strategies
Japanese insurer Nippon Life has committed up to $3.25bn (£2.56bn) to TCW Alternative Credit Strategies in an extension of its existing partnership.
Nippon Life has also pledged to increase its minority ownership stake in TCW in the future.
The expanded partnership will lead to new alternative credit products being launched by TCW, and will accelerate TCW’s long-term strategic growth plan.
“We are grateful for the confidence that Nippon Life has placed in our team through increasing its ownership interest in TCW and accelerating the diversification and growth of our alternative credit platform, alongside their existing and ongoing investments in public fixed income and public equities,” said Katie Koch, president and chief executive of TCW.
Read more: PNC and TCW partner on private credit platform
TCW has more than doubled its alternative credit assets under management over the past four years. Earlier this year, the asset manager entered into a partnership with PNC Financial Services to extend private credit to middle market companies.
TCW has created a dedicated asset-backed finance business that provides financing solutions to a range of asset owners and originators. TCW also manages more than a dozen collateralised loan obligations (CLO). In the year ahead, the firm said that it plans to add new alternative credit strategies, including real estate credit.
Read more: TCW launches asset-backed finance business
“Nippon Life looks forward to further leveraging TCW’s world-class alternative credit capabilities to improve risk-adjusted returns for the benefit of our policyholders,” said Hiroshi Shimizu, president of Nippon Life.
“Nippon Life has long admired and invested with TCW across private and public markets for its outstanding investment expertise and we are pleased to strengthen our partnership and support the further growth of TCW.”
Jefferies acted as sole financial advisor to TCW, with legal counsel provided by Kirkland & Ellis.
Read more: TCW Group closes third CLO of the year with $400m
