The TCW Group, a leading global asset management company, today announced that it has closed its second $400 million Collateralized Loan Obligation (CLO) fund this year, TCW CLO 2024-2, Ltd., which is secured primarily by broadly syndicated first-lien loans. This close adds to TCW’s strong, continued growth in alternative credit assets, which have more than doubled since 2020.

The close of TCW CLO 2024-2 follows on TCW CLO 2024-1, a $400 million CLO that closed in February of this year. TCW now manages 12 CLOs within the firm’s leading $52 billion integrated global credit platform.

TCW continues to grow its alternative credit assets under management (AUM) across private credit, private asset-backed finance, CLO liabilities and CLO AUM. In 2023, TCW entered into a strategic CLO equity investment partnership with Lakemore Partners Ltd. to support the growth of TCW’s CLO platform. In early 2024, TCW launched a private asset-backed finance business that leverages the strength of TCW’s $90 billion liquid securitized business. In May 2024, TCW announced a formal partnership with PNC Financial Services to deliver private credit solutions to middle market companies.

“We see increasing demand from investors for a range of alternative credit products, including CLOs, to add diversified return streams in their portfolios,” said Jerry Cudzil, Fixed Income Generalist Portfolio Manager. “TCW’s growth in alternative credit is a natural extension of our industry-leading credit capabilities across the capital structure, which includes a significant leveraged finance platform.”

TCW CLO 2024-2 will be led by Senior Portfolio Managers Drew Sweeney and Ken Toshima.

“This deal brings TCW’s CLO AUM to $5 billion, and we are gratified to be recognized as a top tier CLO manager by our investors,” said Sweeney.

Jefferies LLC served as placement agent and structuring agent.

Source: TCW