CGBD - TCG BDC new JV to capitalize on opportunities emerging from volatility

TCG BDC (CGBD) forms a joint venture with an investment vehicle managed by Cliffwater LLC to create Middle Market Credit Fund II LLC, a move that's intended to better capitalize on senior-loan opportunities that have emerged from recent market volatility.The new venture gives TCG BDC enhanced balance sheet flexibility, including increased capital to deploy into an attractive origination environment and additional capacity to repurchase shares of CGBD, the company said.MMCF II initially consists of a $250M portfolio in investment principal comprised predominantly of senior secured loans contributed from TCG BDC.The combination of newly originated investments alongside share repurchases are expected to increase the net investment income generation capabilities of TCG BDC. After giving effect to the formation of MMCF II, TCG BDC’s debt outstanding is expected to decrease by ~$170M.While the equity ownership will be ~84% for TCG BDC and 16% for Cliffwater, each of TCG BDC and Cliffwater will have equal

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TCG BDC new JV to capitalize on opportunities emerging from volatility