PNC and TCW Partner to Expand Capabilities and Create Private Credit Platform

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The partnership between The PNC Financial Services Group, Inc. (“PNC”) and The TCW Group, Inc. (“TCW”) aims to provide private credit solutions to middle-market companies in the U.S. This collaboration formalizes and expands over 15 years of cooperation between the two institutions, leveraging TCW’s expertise in originating, underwriting, and managing direct lending portfolios and PNC’s national client relationships and leading middle market lending franchise.

The joint strategy will primarily focus on senior secured cash-flow and asset-based loans to both sponsored and non-sponsored middle market companies. This initiative aims to address the financing needs of middle-market businesses while offering a differentiated investment solution for clients.

Katie Koch, president and CEO of TCW, expressed excitement about the partnership, highlighting the opportunity to capture significant market share in the expanding private credit market by leveraging the strengths of both firms. William S. Demchak, chairman and CEO of PNC, emphasized the potential benefits for companies seeking growth opportunities by combining PNC’s lending capabilities with TCW’s private credit group.

A dedicated team will manage all investment activities, including origination, underwriting, and portfolio management. The platform aims to have $2.5 billion in investor equity capital available in its first year, supported by anchor investments from PNC and Nippon Life, TCW’s strategic partner and shareholder. Investment activity is expected to commence in the Fall of 2024.

Rick Miller, CIO of TCW Private Credit and chair of the new joint private credit partnership, described the partnership as a natural extension of TCW’s existing Direct Lending and Rescue Fund strategies, offering investors access to a broader segment of the middle market.

TCW, as a leading global asset management firm with extensive experience across fixed income, alternative investments, equities, and emerging markets, manages approximately $200 billion in client assets. The firm’s clients include major corporate and public pension plans, financial institutions, endowments, foundations, financial advisors, and high-net-worth individuals.