Launches with significant commitments, including anchor investment from Apollo S3 Credit Solutions
The TCW Group, a leading global investment firm, announced that it has launched the TCW Private Asset Income Fund (TPAY), a private asset-backed finance interval fund to provide exposure to asset-backed finance opportunities to a range of investor types. TPAY launches with over $450 million in subscription commitments, including an anchor commitment from Apollo S3 Credit Solutions.
TPAY focuses on private lending opportunities that power the real economy, providing investors with the potential for attractive excess risk-adjusted returns, consistent income and portfolio diversification. To manage liquidity, approximately 20% of the fund will be invested in attractive liquid structured products. TPAY has the ability to target opportunistic transactions in the ABF market across the capital structure and is designed to offer meaningful diversification away from corporate-credit exposures.
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“As capital markets continue to evolve, asset-backed finance offers significant opportunities for scaled, non-bank lenders to provide flexible capital to borrowers and potential to deliver attractive risk-adjusted returns for investors,” said Dylan Ross, Co-Portfolio Manager of TPAY. “The TCW Private Asset Income Fund delivers private market access to wealth investors supported by TCW’s multi-decade experience record investing across the public and private credit spectrum and deep expertise in securitized assets.”
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The fund is managed by Co-Portfolio Managers Ross, Max Scherr and Peter Van Gelderen. Ross, who joined TCW in 2024 to lead the firm’s asset-backed finance effort, has two decades of experience in alternative credit investing with a primary focus on structured credit and asset-backed finance. Scherr joined TCW in late 2024 from Brigade Capital where he ran financial investing, which included securitized and structured credit. Van Gelderen serves as Co-Head of Global Securitized within TCW’s Fixed Income group, which manages over $80 billion in securitized assets.
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The U.S. asset-backed finance market is currently estimated at approximately $5 trillion and is projected to grow to $8 trillion by 2027, with the global market reaching an estimated $20 trillion. Wealth advisors are steadily increasing average allocations to alternative investments from low single digits toward goals of 15%+ in the next decade. This shift is driven by growing demand for diversification, enhanced income, and inflation protection. Private credit alternatives are one of the fastest-growing categories.
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Source: businesswire