The TCW Group announced the launch of a dedicated Asset-Backed Finance (“ABF”) business that will be anchored with over $1 billion in capital commitments from TCW, partners, and affiliates.
TCW was an early entrant to private credit and the continued expansion of its alternatives capabilities will build upon the firm’s multi-decade track record in direct lending and its recently announced strategic partnership with Lakemore Partners Ltd. to support the growth of TCW’s CLO platform.
Dylan Ross joined The TCW Group earlier this month as a Managing Director and Portfolio Manager to lead the asset-backed finance investment efforts. Mr. Ross brings to TCW almost 20 years of experience in alternative credit investing with a primary focus on structured credit and asset-backed finance. Most recently, he was a Partner and Portfolio Manager at Brigade Capital Management LP, a $25 billion alternative credit asset manager based in New York. Mr. Ross helped launch the firm's dedicated Structured Credit fund in 2014 and served as the Co-Head of the business from inception.
“TCW is committed to expanding our alternative investment offerings leveraging our strong heritage in both private and public markets investing, and we have already seen robust client demand for the asset-backed finance strategy,” said Kathryn Koch, TCW President and CEO. “Dylan’s deep industry relationships, strong investment capabilities and proven track record building new businesses make him the ideal partner to launch this new investment strategy that will lend to the multi-trillion dollar asset-backed finance market.”
As the U.S. banking system continues to retrench from the financing markets, new sources of private capital that bring a solution-oriented approach to financing the U.S. economy is more important than it has been in decades. TCW’s expanded alternative capabilities will focus on asset-backed finance including lending against consumer assets, commercial and residential mortgages, hard assets and financial assets and will leverage the firm’s existing $90 billion liquid securitized business.
“After having great respect for TCW’s leading investment capabilities throughout the course of my career, I’m honored to join this preeminent asset management institution,” said Mr. Ross. “The demand for non-bank lenders in asset-backed finance has never been more robust and I am confident that with the strong support of TCW’s leadership, its shareholders and my new colleagues, we will become a leading partner in this fast-growing asset class.”
The TCW Asset-Backed Finance business will be based in New York and the firm is in the process of building a dedicated investment team for the strategy. The team will work closely with TCW's fixed income business, as well as the firm's other alternative strategies including the private credit and CLO platforms.
“We are excited to welcome Dylan to the TCW platform and look forward to close collaboration between our leading fixed income investment professionals and the new asset-backed finance initiative. It is incumbent upon us as an active fixed income manager to continue to expand the investment opportunity set for our clients,” said Bryan Whalen, Chief Investment Officer and Generalist Portfolio Manager in TCW’s Fixed Income Group. “Our new asset-backed finance team will complement our existing securitized business and drive synergies across the platform.”