PNC, TCW Group Partner for Private Credit Solutions

The PNC Financial Services Group and TCW, a global asset manager, have joined forces to provide private credit solutions to middle-market businesses.

The companies plan to make $2.5 billion in investor equity capital accessible in the platform’s first year, with anchor investments from PNC and Nippon Life, TCW’s strategic partner and stakeholder. Investment activity is likely to start in the fall.

The joint strategy will primarily target directly originated, senior secured cash-flow and asset-based loans to both sponsored and non-sponsored middle market companies.

“PNC and TCW have a long history of developing creative solutions across a number of joint financings, and this partnership represents an exciting opportunity to capture significant market share of the expanding private credit market by leveraging the strengths of both our firms,” said Katie Koch, president and CEO of TCW.

Many financial institutions, notably Goldman Sachs and JPMorgan, have sought to enter the global private lending market. In February, Goldman formed a collaboration with Mubadala Investment, an Abu Dhabi sovereign wealth fund, to invest $1 billion in private credit deals in Asia-Pacific markets.

JPM allocated $10 billion to their private credit strategy. the bank intends to bring together a consortium of lenders to support the private credit deals it creates.