TCW Debt Funds Said to Cut Fees After Gundlach Exit

TCW Group Inc., the Los Angeles-based unit of Societe Generale, slashed fees on two distressed debt funds with about $3 billion in assets to appease investors after the ouster of former investment chief Jeffrey Gundlach. TCW cut the management fees on the funds to 1 percent from 2 percent and reduced the carried interest, or share of profits, to 5 percent from 20 percent, said two people familiar with the matter who asked not to be identified because the changes aren’t public. The two funds, TCW Special Mortgage Credit Funds I and II, were set up by Gundlach at the start of the credit crisis to invest in mortgage-backed securities that had dropped in value.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please