TCW nears fundraising goal for direct lending fund

 The direct lending vehicle is thought to be the largest single fundraise yet dedicated to the strategy.  

TCW Direct Lending, the Boston-based direct lending division of Carlyle-controlled bond manager TCW Group, has recently reported to the SEC that it raised $1.44 billion for its direct lending fund. The fund is targeting $2.5 billion, said a source close to the situation. A spokesman for TCW declined to comment.

This vehicle also received a $300 million commitment from the $79.7 billion New Jersey Division of Investments at the pension’s board meeting on 29 January.

The TCW Direct Lending group began raising this fund in the spring of last year and has previously worked together on other funds at Boston-based Regiment Capital Advisors, which was acquired by TCW in the end of 2012. That group managed $2 billion at the time and is led by group managing director Richard Miller.

The team also added David Dobies as a managing director in January last year. Dobies was previously the co-head of mid-market leveraged finance at NewStar Financial in Boston.

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.

The New Jersey pension plan made other commitments to private debt strategies at its last meeting. These included an additional $150 million investment in the GSO Energy Partners-A fund and a follow-on $200 million investment in the GSO Credit Partners-A fund.

The pension plan made new investments and additions to other Blackstone private equity and real estate strategies totaling $1.05 billion. The Garden State retirement fund has a strategic partnership with Blackstone, whereby the pension can tactically allocate among the firm’s strategies as opportunities arise.


 *This article was updated on 3 February to reflect the fact that TCW is targetting $2.5 billion for the direct lending fund, rather than $3 billion as reported by the Wall Street Journal last year.