Interview, Fireside Chat
From CIO to CEO: TCW’s Katie Koch on running a $200B asset manager
- TCW will shift strategy toward holistic client solutions by constructing portfolios that mix public and private assets to meet rising demand for return targets, evolving its platform to include ETFs and liquid markets while expanding its alternatives footprint.
- The firm plans to deploy significant dry powder from private credit and public fixed income to capitalize on market dislocations, with a specific emphasis on private credit leveraging its existing track record rather than new entry.
- Investment decisions will adhere to a value philosophy and valuation discipline that avoids asset classes with negative forward returns, aiming to generate outsized returns for clients by utilizing current market volatility.
- TCW intends to maintain its relevance to borrowers by positioning itself relative to the CFO within the debt portion of the capital structure and will avoid allocating size to asset classes where valuations suggest negative returns.
- Cultural and talent strategies will focus on hiring individuals driven by a mission, fostering psychological safety and intellectual curiosity to break down silos between public and private markets, with integrity and humility established as top cultural values.
- The firm acknowledges market trends such as the shift from public to private equity as emerging patterns in fixed income and expects continued capital inflows in private credit, while intentionally maintaining lower deployment levels to avoid optimistic lending cycles.
- While TCW does not anticipate a recession, it recognizes the human impact of such events and will continue to facilitate client retirement savings growth by navigating the current volatile environment.