Joint venture partnership with Cliffwater
The transaction enhances the purchasing power and revenue generation capabilities of TCG BDC, Inc.
NEW YORK, November 04, 2020 (GLOBE NEWSWIRE) – TCG BDC, Inc. (together with its consolidated subsidiaries, “we”, “our”, “our”, “TCG BDC” or the “Company”) (NASDAQ: CGBD ) announced today that it has formed a joint venture with an investment vehicle managed by Cliffwater LLC (“Cliffwater”) to create Middle Market Credit Fund II, LLC (“MMCF II”). The transaction allows TCG BDC to better capitalize on attractive senior loan opportunities that have emerged amid recent market volatility.
MMCF II initially consists of a $ 250 million private equity portfolio comprised primarily of senior secured loans provided by TCG BDC. Although the equity stake is approximately 84% for TCG BDC and 16% for Cliffwater, TCG BDC and Cliffwater will have equal voting rights on the board of directors, including equal voting power in all activities of the company. potential future investment of MMCF II.
The creation of MMCF II provides TCG BDC with increased balance sheet flexibility, including increased capital to deploy in an attractive mounting environment and additional capacity to repurchase CGBD shares. The combination of new investments and share buybacks is expected to increase TCG BDC’s ability to generate net investment income on behalf of our shareholders. After giving effect to the formation of MMCF II, TCG BDC’s outstanding debt is expected to decrease by approximately $ 170 million.
“Partnering with Cliffwater LLC, a leading global alternative investment advisor, will significantly enhance our value as a provider of capital solutions and help us deliver added value to shareholders,” said Linda Pace, Chief Executive Officer. management of TCG BDC. “MMCF II will extend the scalability and investment capabilities of TCG BDC at a time when we see more and more opportunities to generate attractive risk-adjusted returns on new investments. Based on our similar investment philosophy, we believe TCG BDC is well positioned to generate attractive risk-adjusted returns for its shareholders.
Blake Nesbitt, Managing Director of Cliffwater LLC, said: “This transaction illustrates the growth of our private lending business. We are seeking partnerships with major direct loan managers as part of our co-investment, secondary and primary investment activities. We have great respect for the Carlyle organization and are delighted to be invested alongside the platform’s vast capabilities in the MMCF II Joint Venture.
About TCG BDC, Inc.
TCG BDC is an externally managed specialty finance company focused on lending to mid-market businesses. TCG BDC is managed by Carlyle Global Credit Investment Management LLC, an SEC registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. From inception of investment operations in May 2013 until September 30 2020, TCG BDC invested approximately $ 6.0 billion. of the total principal amount of debt and equity investments before any subsequent exit or repayment. TCG BDC’s investment objective is to generate current income and capital appreciation primarily through debt investments in mid-market US companies. TCG BDC elected to be regulated as a business development company under the Investment Companies Act 1940, as amended.
About Cliffwater LLC
Founded in 2004 with offices in Los Angeles and New York, Cliffwater LLC is an alternative investment management and advisory firm with approximately $ 73 billion in assets under advice.1 primarily serving institutional investors, including pension systems, endowments, foundations and financial institutions. Its global platform provides research on asset classes and managers in the areas of private equity, private debt, real estate, real assets and hedge funds, with clients allocating capital to companies. combined funds, co-investments and direct investments. Cliffwater’s pioneering research on private debt, particularly direct private lending, led to the development of the Cliffwater Direct Lending Index (CDLI), which is used to capture the investment characteristics and performance of private debt and serves as a benchmark for institutional allocations.
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking statements that involve substantial risks and uncertainties, including the impact of COVID-19 on the business. You can identify these statements by using forward-looking terminology such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “plans”, “Continues,” “believes”, “seeks”, “estimates”, “would”, “could”, “targets”, “projects”, “prospects”, “potential”, “predict” and variations of these words and Similar phrases to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements containing these words carefully, as they relate to our plans, strategies, prospects and expectations regarding our business, our results. operations, financial condition and other similar matters. We believe it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control. You must not place undue reliance on these forward-looking statements, which speak only as of the date on which we make them. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, risks, uncertainties and other factors that we identify in the sections entitled “Risk Factors” and “Risk Factors”. Caution Regarding Futures Contracts Looking Statements ”in filings with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We assume no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
|(1)||Private assets as of March 31, 2020; all other assets as of June 30, 2020. Includes discretionary and non-discretionary assets under review. The data is not audited.|
|Daniel harris||Breton Berliners|