Credit Crunch: TCW’s Miller on Rescue Capital and Direct Lending

“The key to longevity in lending is really avoiding principal loss, minimizing principal loss,” says Richard Miller, chief investment officer of TCW’s Private Credit Group. Reduced distress has led to less demand for restructuring and recovery-optimization skill sets in recent years, but “it really feels like in the next four or five [years]... those characteristics are going to be important for performance in this space,” according to Miller. He joins Bloomberg Intelligence’s Noel Hebert on this episode of the Credit Crunch podcast to discuss TCW’s suite across direct lending and rescue capital, as well as its strategic partnership with PNC. They also explore appropriate leverage profiles, whether software is uninvestable, having flexibility beyond sponsor-led deals and why newer-vintage direct-lending offerings might be better positioned.