Investment manager The TCW Group has voluntarily withdrawn from the U.S. Department of the Treasury’s Public Private Investment Program (PPIP), the firm said on Monday.
TCW was invested via its UST/TCW Senior Mortgage Securities Fund, according to the Jan. 4 statement. The fund has roughly $500 million in assets under management and completed its initial closing on Sept. 30, 2009. The Los Angeles-based firm was selected for the program in July.
Marc Stern, CEO at the firm, cited recent personnel changes a reason for exiting the program.
"Given that we are at a very early stage of investment in this particular product, and in light of the recent changes in the portfolio management team, we believe this action is appropriate and in-line with TCW's commitment to act in the best interests of our clients," he said in the statement. "This will also benefit the holders of older TCW vintage funds, as we will be able to dedicate even more resources to those investments."
Early last month, TCW announced it had acquired bond manager Metropolitan West Asset Management (MetWest). Also announced on Dec. 4 was the termination of lead investment officer and manager Jeffrey Gundlach.
“Mr. Gundlach threatened to leave TCW and take key employees with him which would have interrupted our ability to manage clients high grade fixed-income assets,” firm spokesperson Erin Freeman told Investment Management Weekly at the time.
Shortly following the news of Gundlach’s departure, the Treasury informed TCW that a “Key Person Event” had occurred and it was evaluating the situation.
Meanwhile, Gundlach has since formed his own firm, Los Angeles-based DoubleLine, to manage core fixed-income and mortgage-backed securities portfolios.
More than 40 professionals from TCW have joined DoubleLine.