TCW closes direct lending fund; eyes BDCs

The US investment firm has raised $2 billion for its first direct lending fund and is considering starting a business development company, too.  

 The Boston-based direct lending group of US asset manager TCW has closed its first direct lending fund at $2.01 billion. The team has also collected more money in separate accounts, to get it up to about $2.5 billion. Earlier reports and an SEC filing point to a $3 billion target, although the manager had only set that as a hard cap, a source close to the firm told PDI. The New Jersey Division of Investments had committed $300 million to the manager in February, as PDI previously reported.

According to recent SEC filings, the direct lending group is also considering starting a business development company (BDC). The firm is still weighing the timing of its entry, as BDCs haven’t been trading well lately, a source close to the firm explained. A filing on 1 May shows that the firm has applied for permission to co-invest in companies through several vehicles, including closed-end funds, BDCs and other affiliated investment funds.

The TCW Direct Lending group began raising money for the TCW DL Fund I last spring and has previously worked together on other funds at Boston-based Regiment Capital Advisors, which was acquired by TCW in 2012. That group managed $2 billion at the time and is led by managing director Rick Miller.

The Carlyle Group bought its 60 percent stake in TCW from previous parent, French bank Société Générale, in February 2013. The Los Angeles-headquartered asset manager handles $163.4 billion across mutual funds, public fixed-income, institutional strategies and other alternatives.