PNC Monetary Companies Group and US asset supervisor The TCW Group are launching a brand new non-public credit score platform devoted to financing mid-market corporations.
PNC, which affords a spread of economic providers within the US, together with lending merchandise, wealth administration and asset administration, mentioned that the partnership formalises and expands greater than 15 years of collaboration between the 2 companies.
It famous TCW’s 23-year monitor report in direct lending and the strengths of its personal nationwide consumer community and mid-market lending franchise.
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The partnership will focus totally on immediately originated, senior secured cash-flow and asset-based loans to each sponsored and non-sponsored mid-market corporations.
“We’re thrilled to associate with PNC to increase our direct lending capabilities and supply financing to a essential section of US corporations, in addition to provide a differentiated funding answer for purchasers,” mentioned Katie Koch, president and chief govt of TCW. “PNC and TCW have a protracted historical past of growing artistic options throughout various joint financings, and this partnership represents an thrilling alternative to seize important market share of the increasing non-public credit score market by leveraging the strengths of each our companies.”
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PNC and TCW will set up a crew to handle the entire technique’s funding actions together with origination, underwriting and portfolio administration.
The brand new three way partnership is aiming to boost $2.5bn (£2bn) in investor fairness capital in its first yr, which will probably be supported by anchor investments from PNC and Nippon Life, TCW’s strategic associate and shareholder.
Funding exercise is anticipated to start in autumn of this yr.
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“Combining the facility and legacy of PNC’s broad lending capabilities with TCW’s non-public credit score group will ship important profit to corporations searching for development alternatives,” mentioned William S. Demchak, chairman and chief govt officer of PNC.
