TCW: $400M CLO Fuels Alternative Credit Expansion
- TCW Group, based in los Angeles, has announced the closing of TCW CLO 2025-1, a $400 million collateralized loan obligation (CLO) fund.
- This latest deal builds on TCW's momentum from 2024, during which the firm completed multiple CLO transactions, including new issuances, resets, and refinancings. The company has continued this...
- Since 2020, TCW has more than doubled its alternative credit assets under management.
TCW Group solidifies it’s option credit footprint with the closing of a $400 million CLO fund, TCW CLO 2025-1—its 14th. This strategic move significantly boosts TCW’s alternative credit portfolio, signaling robust expansion. The fund, primarily comprised of first-lien loans, underscores the firm’s focus on this specialized market sector. The firm’s alternative credit assets have more than doubled since 2020, indicative of their growth. Jefferies LLC played a crucial role as the placement and structuring agent. Read all about this and other financial news on News Directory 3. What’s next for TCW in the evolving alternative credit landscape? Discover what’s next.
TCW Group Closes $400M CLO Fund, Expanding Alternative Credit Reach
Updated May 30, 2025
TCW Group, based in los Angeles, has announced the closing of TCW CLO 2025-1, a $400 million collateralized loan obligation (CLO) fund. The fund is primarily secured by broadly syndicated first-lien loans. This marks TCW’s 14th CLO issuance and highlights the company’s growth within the alternative credit market.
This latest deal builds on TCW’s momentum from 2024, during which the firm completed multiple CLO transactions, including new issuances, resets, and refinancings. The company has continued this activity into the first quarter of the current year with this new issuance, alongside additional resets and refinancings.
Since 2020, TCW has more than doubled its alternative credit assets under management. The firm now manages approximately $6 billion in dedicated CLO assets, which are part of a broader $20 billion alternative credit portfolio. This portfolio includes private credit, private asset-backed finance, CLO liabilities, and CLO AUM.
In 2024, TCW launched the TCW AAA CLO ETF (ACLO), providing investors with access to AAA-rated CLOs through an exchange-traded fund. This move complements TCW’s existing CLO offerings and broadens its reach to investors interested in alternative credit investments.
Jefferies LLC served as the placement agent and structuring agent for this latest CLO transaction, facilitating its accomplished close.
What’s next
TCW Group is expected to continue expanding its presence in the alternative credit space,leveraging its expertise in clos and other credit-related investments to meet investor demand and capitalize on market opportunities.