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 firms.
PNC, which presents a spread of monetary providers within the US, together with lending merchandise, wealth administration and asset administration, stated that the partnership formalises and expands greater than 15 years of collaboration between the 2 companies.
It famous TCW’s 23-year observe 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 instantly originated, senior secured cash-flow and asset-based loans to each sponsored and non-sponsored mid-market firms.
“We’re thrilled to accomplice with PNC to broaden our direct lending capabilities and supply financing to a crucial section of US firms, in addition to supply a differentiated funding answer for purchasers,” stated 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 vital 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 all the 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 shall be supported by anchor investments from PNC and Nippon Life, TCW’s strategic accomplice 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 vital profit to firms searching for development alternatives,” stated William S. Demchak, chairman and chief govt officer of PNC.
