Bridget Hickey reports that TCW Group has launched its first interval fund, the TCW Private Asset Income Fund (TPAY), aimed at the wealth market and backed by an anchor commitment from Apollo’s credit secondaries business. The strategy targets opportunistic investments in asset-backed finance and includes a 20% allocation to liquid structured products for liquidity management. TPAY has already secured over $450 million in subscription commitments, with a $10,000 minimum investment.
To gain early traction, TCW is offering a reduced management fee of 0.50% for the fund’s first year which is half the 1% listed in the fund’s prospectus. Kimberly Flynn, President of XA Investments, sees the fee cut as a strategic move to challenge Cliffwater’s $5.5 billion Enhanced Lending Fund, the dominant player in the space. “TCW is a little late to the game,” she said. “They’re trying to hustle and grow this fund quickly.”
Flynn noted that the aggressive pricing signals both ambition and cost. “The discounted fee means TCW will likely be losing money at the start,” she added. “It’s a costly and ambitious endeavor.”
With demand rising for private credit access through registered products, asset-backed lending has become a focal point for managers seeking to scale in the wealth channel. Flynn pointed to the increasingly competitive interval fund landscape, where brand strength and early momentum can determine long-term success. TCW’s launch adds an institutional-grade entrant to a market still dominated by niche players and a few major firms like PIMCO.
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