The TCW Direct Lending group has formed a senior loan joint venture (JV) in partnership with the Security Benefit Corporation and Oak Hill Advisors. The new partnership, called the TCW Direct Lending Strategic Ventures, will focus on providing senior secured floating rate loans to mid-market borrowers. It will run about $1 billion in assets, comprised of equity commitments from TCW and its partners, as well as a $500 million credit facility from an undisclosed party, TCW recently announced.
The agreements governing the partnership went into effect earlier this month and the JV has made three investments so far. “This new investment vehicle complements our traditional direct lending activities and provides an innovative, cash flow-based solution for middle-market companies designed specifically for the dynamics of today’s lending environment,” Rick Miller, head of TCW Direct Lending, said in a statement.
TCW also recently disclosed the closing of its TCW Direct Lending fund with just over $2 billion in capital commitments, as PDI reported last month. The TCW Direct Lending group began raising money for the vehicle in the spring of 2014 and previously worked together on other funds at Boston-based Regiment Capital Advisors, which was acquired by TCW in 2012.
TCW Direct Lending focuses on providing financing to mid-market borrowers across a variety of industries. Its target investments range from $25 million to $200 million. The direct lending team is based in Boston, with additional offices in New York, Chicago and Los Angeles, where the TCW parent is headquartered. The asset management firm handles a variety of products including public fixed-income and equities, mutual funds, emerging markets strategies and alternative investments. The firm has $180 billion in assets under management.
Oak Hill Advisors is an investment firm specializing in leveraged loans, high-yield bonds, distressed assets, private lending and structured products in North America and Europe. With $26 billion in assets, OHA manages separately-managed accounts, distressed debt funds, credit hedge funds and other specialty credit vehicles.
Security Benefit is a Kansas-based 123-year-old insurance company with about $29 billion in assets. The insurer was acquired by asset management firm Guggenheim Partners, which also runs a sizeable direct lending platform, in 2010.