TCW adding direct lending, hedge fund strategies
By Arleen Jacobius | December 3, 2012 5:32 pm
TCW Group is adding hedge fund and direct lending strategies with the acquisition of the special situation business of credit investment manager Regiment Capital Advisors and a joint venture with hedge fund manager Scoggin Capital Management, confirmed Peter Viles, TCW spokesman.
Terms on either deal were not disclosed.
When the deal closes, the Regiment group within TCW will focus on direct lending to middle-market companies.
Regiment's special situation business currently has $2 billion in committed and invested assets. Its last fund was the $1.7 billion Regiment Capital Special Situations Fund V, which closed on July 1, 2011.
Rick Miller, partner at Regiment who oversees the special situations business, will be joining TCW along with his six-person team. The transaction is expected to close by year-end. When the deal closes, Mr. Miller will be group managing director of direct lending at TCW.
Separately, TCW and Scoggin Capital have formed TCW/Scoggin, which will manage distressed credit and event-driven hedge fund strategies. Scoggin will be responsible for the day-to-day operations and all investment decisions of TCW/Scoggin.
Scoggin co-founders Craig Effron and Curtis Schenker and Dev Chodry, Scoggin's senior partner and head of distressed investments, will remain employees of Scoggin.
Scoggin manages $1.5 billion.
TCW named Jess M. Ravich as group managing director and head of alternative products to oversee both businesses. Mr. Ravich is managing director and head of capital markets at international investment bank Houlihan, Lokey, Howard & Zukin; he will leave the firm at the end of the month, said John Gallagher, Houlihan Lokey spokesman, in an e-mail.
Chuck Yamarone director, capital markets, will oversee day-to-day operations of Houlihan Lokey's capital markets business, Mr. Gallagher said. Mr. Yamarone will take over Mr. Ravich's duties until a replacement is found.