The TCW Leveraged Finance Group is launching a new joint venture with Magic Johnson Enterprises aimed at financing underserved middle market companies.
TCW CapitalAssist Management, LLC will focus on both providing capital and management expertise to help domestic middle market companies grow their business. Its strategy will combine the origination of new senior secured and unsecured debt with the purchase of middle market debt in the secondary market.
Both organizations will actively participate in the management of the joint venture. Basketball legend Earvin “Magic” Johnson, who has been providing consulting services and equity capital to middle market companies, and Milwaukee Brewers’Principal Owner Mark Attanasio, who has led a middle market platform for nearly 20 years, will be directly involved in managing the new venture including making investment decisions.
Eric Holoman, President of Magic Johnson Enterprises, will also serve as part of the TCW CapitalAssist leadership team.
Commenting on the decision to create the new venture, Johnson said: “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.
“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”, he added.