of PNC Financial Services Group And that TCW Group has formalized and expanded its partnership to develop a private credit platform focused on middle market lending.
The companies announced on Monday (May 6) that they aim to have $2.5 billion in investor capital available in the platform's first year and expect investment activity to begin in the fall. press release.
“We are excited to partner with PNC to expand our direct lending capabilities and provide financing to this critical segment of U.S. businesses while providing differentiated investment solutions to our clients.” katie cocksaid TCW President and CEO in a release.
The partnership combines global asset manager TCW's direct lending portfolio origination, underwriting and management experience with financial institution PNC's domestic client relationships and middle market lending franchise, according to the release.
Together, the companies will focus on directly originating senior secured cash flow and asset-based financing for middle market companies, according to the release. They establish a team to manage these investment activities.
“Combining the power and heritage of PNC's extensive lending capabilities with TCW's private credit group will provide significant benefits to businesses seeking growth opportunities.” William S. Demchaksaid PNC Chairman and CEO in a release.
of middle market It has struggled to attract the attention of solution providers, banks, and credit card companies. Because mid-market companies are often too large for small business solutions and too small for enterprise-level capabilities. paul christensenFounder and CEO of a global financial services and technology company Prior confirmationhe told PYMNTS' Karen Webster in an interview published in April.
“The major banks and card networks are waking up to the fact that the middle market is a huge market, one that is underserved by the financial industry and has real challenges to solve,” Christensen said. he said.
visa reported in March middle market companies Companies with annual revenues of $50 million to $1 billion perform most efficiently when they leverage external financing for planned growth plans and cover expected cash flow gaps.
Rankings are driven by operating efficiency and the plans management has in place to use working capital solutions to maintain or improve operating efficiency, as measured by reduction in days outstanding (DPO).
