The TCW Group, a global investment firm with more than $200 billion of assets under management, launched a dedicated asset-backed finance business that will be anchored with more than $1 billion in capital commitments from TCW, its partners and affiliates.

TCW was an early entrant to private credit and the continued expansion of its alternatives capabilities will build upon the firm’s multi-decade track record in direct lending and its recently announced partnership with Lakemore Partners to support the growth of TCW’s CLO platform.

Dylan Ross joined The TCW Group earlier this month as a managing director and portfolio manager to lead asset-backed finance investment efforts. Ross has almost 20 years of experience in alternative credit investing with a primary focus on structured credit and asset-backed finance. Most recently, he was a partner and portfolio manager at Brigade Capital Management, a $25 billion alternative credit asset manager based in New York. Ross helped launch the firm’s dedicated structured credit fund in 2014 and served as the co-head of the business from inception.

“TCW is committed to expanding our alternative investment offerings leveraging our strong heritage in both private and public markets investing, and we have already seen robust client demand for the asset-backed finance strategy,” Kathryn Koch, president and CEO of TCW, said. “Dylan’s deep industry relationships, strong investment capabilities and proven track record building new businesses make him the ideal partner to launch this new investment strategy that will lend to the multi-trillion-dollar asset-backed finance market.”

TCW’s expanded alternative capabilities will focus on asset-backed finance, including lending against consumer assets, commercial and residential mortgages, hard assets and financial assets, and will leverage the firm’s existing $90 billion liquid securitized business.

“After having great respect for TCW’s leading investment capabilities throughout the course of my career, I’m honored to join this preeminent asset management institution,” Ross said. “The demand for non-bank lenders in asset-backed finance has never been more robust and I am confident that with the strong support of TCW’s leadership, its shareholders and my new colleagues, we will become a leading partner in this fast-growing asset class.”

The TCW asset-backed finance business will be based in New York and the firm is in the process of building a dedicated investment team for the strategy. The team will work closely with TCW’s fixed income business as well as the firm’s other alternative strategies, including the private credit and CLO platforms.

“We are excited to welcome Dylan to the TCW platform and look forward to close collaboration between our leading fixed income investment professionals and the new asset-backed finance initiative. It is incumbent upon us as an active fixed income manager to continue to expand the investment opportunity set for our clients,” Bryan Whalen, chief investment officer and generalist portfolio manager in TCW’s fixed income group, said. “Our new asset-backed finance team will complement our existing securitized business and drive synergies across the platform.”