TCW closes $400m CLO

The TCW Group has closed a $400m (£309m) collateralised loan obligation (CLO), as it targets expansion of its alternative credit business.

TCW CLO 2025-1 is primarily backed by broadly syndicated first-lien loans and is its 14th CLO to date.

Since 2020, the asset manager has more than doubled its alternative credit assets under management, comprising private credit, private asset-backed finance, CLO liabilities and CLO assets under management.

Read more: Nippon Life commits $3.25bn to TCW Alternative Credit Strategies

TCW manages around $6bn of CLO assets. The firm said that it had strong CLO activity last year, that included three new issue CLO closings, two resets and two refinancings.

In the first quarter of 2025, TCW has continued this activity with today’s announced new issue as well as two resets and one refinancing.

Read more: TCW Group closes third CLO of the year with $400m

“As we continue to invest in our CLO platform and credit alternatives more broadly, we are seeing ongoing growth in our client base globally,” said Jerry Cudzil, fixed income generalist portfolio manager. “TCW today has a robust lineup of alternative products and we remain focused on expanding our suite of alternative credit solutions for the benefit of our clients.”

Last year, TCW also launched a dedicated CLO exchange-traded fund, the TCW AAA CLO ETF, that provides investors the opportunity to invest in AAA CLOs through an ETF.

“Following on a strong 2024, we expect continued growth in our CLO platform this year and beyond,” said Drew Sweeney, senior portfolio manager. “We are grateful for the confidence investors continue to place in TCW’s disciplined process and approach.”

Jefferies served as placement agent and structuring agent.

Read more: TCW launches asset-backed finance business