The TCW Group and Nippon Life Insurance Company announced that Nippon Life intends to commit up to $3.25 billion in additional anchor capital to TCW alternative credit strategies and increase its minority ownership stake in TCW in the future. The expansion of the partnership will support TCW in launching new alternative credit capabilities, cement TCW’s position as a leading advisor to insurance companies globally, and accelerate TCW’s long-term strategic growth plan.

Katie Koch, President and Chief Executive Officer of TCW, said, “We are grateful for the confidence that Nippon Life has placed in our team through increasing its ownership interest in TCW and accelerating the diversification and growth of our alternative credit platform, alongside their existing and ongoing investments in public fixed income and public equities.”

In addition to managing $175 billion in public fixed income investments, TCW has more than doubled its alternative credit assets under management over the past four years. TCW has one of the most experienced private credit teams in the industry with 25 years of direct lending experience. Earlier this year, TCW and PNC Financial Services entered into a partnership to extend private credit to middle market companies, which is expected to further grow TCW’s private credit business. Additionally, in early 2024, TCW formed a dedicated asset-backed finance business that provides comprehensive financing solutions to a wide array of asset owners and originators and is a natural extension of TCW’s multi-decade track record in managing securitized assets. TCW also brings over a decade of experience managing collateralized loan obligations (CLOs) and manages over a dozen CLOs. Over the coming quarters, the firm expects to add new alternative credit strategies, including real estate credit.

“Nippon Life looks forward to further leveraging TCW’s world-class alternative credit capabilities to improve risk-adjusted returns for the benefit of our policyholders,” said Hiroshi Shimizu, President of Nippon Life. “Nippon Life has long admired and invested with TCW across private and public markets for its outstanding investment expertise and we are pleased to strengthen our partnership and support the further growth of TCW.”

Jefferies LLC acted as sole financial advisor to TCW, and Kirkland & Ellis LLP acted as TCW’s legal counsel.