Business
TCG BDC Announces Formation of MMCF II
Joint Venture Partnership with Cliffwater Transaction Enhances the Purchasing Power and Income Generation Capabilities of TCG BDC, Inc. NEW YORK, Nov. 04,
About this update from Carlyle Secured Lending, Inc.
[{"type":"text","content":"Joint Venture Partnership with Cliffwater\n Transaction Enhances the Purchasing Power and Income Generation Capabilities of TCG BDC, Inc. NEW YORK, Nov. 04, 2020 (GLOBE NEWSWIRE) -- TCG BDC, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “TCG BDC” or the “Company”) (NASDAQ: CGBD) today announced 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 positions TCG BDC to better capitalize on compelling senior-loan opportunities that have emerged amidst the recent market volatility. MMCF II initially consists of a $250 million portfolio in investment principal comprised predominantly of senior secured loans contributed from TCG BDC. While the equity ownership will be approximately 84% for TCG BDC and 16% for Cliffwater, each of TCG BDC and Cliffwater will have equal voting rights on the Board including equal voting discretion over any potential future investment activities of MMCF II. The creation of MMCF II provides TCG BDC with enhanced balance sheet flexibility, including increased capital to deploy into an attractive origination environment and additional capacity to repurchase shares of CGBD. The combination of newly originated investments alongside share repurchases are expected to increase the net investment income generation capabilities of TCG BDC on behalf of our shareholders. After giving effect to the formation of MMCF II, TCG BDC’s debt outstanding is expected to decrease by approximately $170 million. “Partnering with Cliffwater LLC, one of the world’s leading global alternative investment advisors, will greatly enhance our value as a capital solutions provider and help us deliver incremental value to shareholders,” said TCG BDC Chief Executive Officer Linda Pace. “MMCF II will expand TCG BDC’s scalability and investment capabilities at a time when we are seeing increased opportunity to generate attractive risk adjusted returns on new investments. Driven by our similar investment philosophy, we believe TCG BDC is well positioned to earn attractive risk-adjusted returns for its shareholders.” Blake Nesbitt, Managing Director at Cliffwater LLC, said, “This transaction is illustrative of our growing private credit business. We seek partnerships with leading direct lending managers ac...