Interview, Fireside Chat
From CIO to CEO: TCW’s Katie Koch on running a $200B asset manager
- Katie Koch currently serves as President and CEO of TCW, a global asset manager with over $200 billion in assets under management, having joined the firm in 2023.
- Prior to leading TCW, Koch spent 20 years at Goldman Sachs, most recently serving as Chief Investment Officer (CIO) of the Public Equity business within Asset & Wealth Management.
- Koch attributes her preparation for the CEO role to her background as an investor, which provides deep empathy for the psychological challenges of asset management, though she notes the operational execution of strategy required a steeper learning curve.
- TCW was founded in 1971 by Robert Day, a member of the Keck family (founders of Superior Oil), and has remained independently held for over 50 years.
- The firm is currently balancing respect for its fixed-income heritage with a strategic evolution into alternatives, specifically private credit and Exchange-Traded Funds (ETFs).
- Koch's shift toward alternatives is driven by "pattern recognition" of the long-term trend where private markets are capturing share from public markets, noting the U.S. has 50% fewer public listings than when she entered the industry.
- In the debt capital structure, TCW aims to provide holistic solutions allowing borrowers to be simultaneously public and private, or Investment Grade and High Yield, to remain relevant to CFOs.
- Institutional clients are increasingly requesting return targets and holistic portfolio construction across public and private asset classes rather than purchasing individual products.
- TCW entered the current volatile market environment with significant "dry powder" in private credit and maximum underweight positions in public credit due to negative forward valuations.
- The firm recently executed one of its busiest trading days in history to capitalize on market dislocations, aiming to generate outsized returns for clients through active management during periods of uncertainty.
- Koch identifies integrity as the top cultural priority at TCW, emphasizing that while investment decisions may be incorrect, sacrificing values or morals is never tolerated.
- The firm's culture also prioritizes humility, intellectual curiosity, and collaboration across public and private market silos to foster psychological safety and a feedback-rich environment.
- Koch's leadership philosophy is shaped by advice from her parents: her father taught her to do "the right thing" rather than the expedient one, while her mother encouraged her to ask, "What decision would you make if you knew you wouldn't fail?" to overcome fear of failure.
- Koch draws inspiration from her time at the University of Notre Dame, specifically its mission-driven culture and the ability to inspire employees to believe in something larger than themselves.
- As a parent to four children under the age of 10, Koch prioritizes teaching resilience and the concept that "losing is the most important thing" to build long-term grit.
- During the January 2025 Los Angeles wildfires that displaced her family, Koch framed the tragedy as a growth opportunity for her children to witness overcoming hardship together.
- In the "lightning round," Koch cites her first investment as Disney stock received for First Communion, her most admired investors as TCW's Rick Miller and Brian Whalen for their discipline, and her current excitement regarding market volatility.