SOURCE: The TCW Group, Inc.

The TCW Group, Inc.

November 18, 2009 09:30 ET

TCW Leveraged Finance Group Forms Joint Venture With Magic Johnson Enterprises to Launch Middle Market Lending Business

LOS ANGELES, CA--(Marketwire - November 18, 2009) - The TCW Leveraged Finance Group announced today that it will launch a new joint venture with Magic Johnson Enterprises, TCW CapitalAssist Management, LLC, aimed at meeting the financing needs of the underserved middle market. TCW CapitalAssist will focus on both providing capital and management expertise to help domestic middle market companies grow their business. The joint venture enters the middle market lending business at a time when commercial and investment banks are severely limited in their ability or desire to lend while many dedicated middle market lenders are dealing with their own financial problems and paring back their activities. This has resulted in an opportunity for TCW CapitalAssist to benefit from an environment of reduced competition, widening spreads, more conservative capital structures, and improved deal terms in the middle market.

Both organizations will actively participate in the management of the joint venture. Earvin Johnson -- who has been a leader in providing quality retail to ethnically diverse communities as well as equity capital to middle market companies and Real Estate development projects following his Hall of Fame basketball career with the Los Angeles Lakers -- and Mark Attanasio -- who has led a multi-billion dollar middle market platform for nearly 20 years and is the Principal Owner of the Milwaukee Brewers -- will be involved in managing TCW CapitalAssist including making investment decisions.

"As an entrepreneur, business owner, and investor, access to capital is always one of the most difficult challenges. The recent credit crisis has made this even more difficult as lenders have exited or significantly scaled back their offerings to middle market companies when there is an increased need for private capital -- as President Obama has stated this shortage of capital is a critical impediment holding back many companies as well as our economic recovery," said Earvin Johnson, Chairman and CEO of Magic Johnson Enterprises. "In addressing this void, we believe our partnership with the TCW Leveraged Finance Group, with its reputation and expertise in the middle market, will allow us to successfully satisfy a pressing need in today's challenging economy."

"Teaming up with Magic creates a winning combination -- a familiar concept to Magic," commented Mark Attanasio, Group Managing Director of the TCW Leveraged Finance Group. "We look forward to combining our record and experience in middle market lending with Magic's entrepreneurial spirit and expertise in bringing the corporate and urban worlds together to help address this critical economic challenge."

TCW CapitalAssist's strategy will combine the origination of new senior secured and unsecured debt with the purchase of middle market debt in the secondary market.

Eric Holoman, President of Magic Johnson Enterprises, will also serve as part of the TCW CapitalAssist leadership team.

ABOUT TCW LEVERAGED FINANCE GROUP

The Leveraged Finance Group manages approximately $16.2 billion of assets and commitments under management as of September 30, 2009 in five investment strategies -- High Yield, Bank Loans, Mezzanine Lending, Distressed Investing and Alternative Credit strategies -- as well as participating in several multi-strategy products. The Leveraged Finance Group is a part of The TCW Group, Inc., a firm that has approximately $108 billion in assets under management. Mark Attanasio and Jean-Marc Chapus are founders of the Leveraged Finance Group that has grown over 20 years to 94 employees. The Group's investment strategies are all based on comprehensive bottom-up analysis performed by specialized investment teams, maximizing the value of their industry and credit expertise while capitalizing on the Group's broad network of contacts. Rigorous credit analysis, diversification of issuers and industries, and a "hands on" approach emphasizing direct interaction with management are disciplines that it relies upon in its investment process.

ABOUT MAGIC JOHNSON ENTERPRISES

Magic Johnson Enterprises, formed in 1987, serves as a catalyst for community and economic empowerment by making available high-quality entertainment, products and services that answer the demands of ethnically diverse urban communities. Through investment, partnership and consultation, Magic Johnson Enterprises has a portfolio of companies that strategically work together to reinforce the organization's focus on serving emerging, multicultural communities. Learn more at www.magicjohnsonenterprises.com/

About TCW

Founded in 1971, The TCW Group, Inc. develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients' wealth. The firm has approximately $108 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals. TCW is a subsidiary of Société Générale Asset Management, which has approximately $400 billion under management. For more information, please refer to www.tcw.com.

Contact Information

  • CONTACT

    Erin K. Freeman
    Managing Director, Corporate Communications
    The TCW Group, Inc.
    213-244-0464
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    Bill Mendel
    Mendel Communications LLC
    (212) 397-1030
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