TCW/Crescent announced Tuesday that it has merged with Canterbury Mezzanine Capital.
Canterbury principals Patrick Turner, Nicholas Dunphy, Joseph Kaufman, Daniel Honeker and Andrew Bernstein have joined TCW/Crescent as partners. Effective immediately, Canterbury will enter the market as TCW/Crescent and will be the firm’s New York office.
“TCW and Canterbury have long shared similar philosophies and investment strategies, with an emphasis on credit-driven analysis and sponsored deals,” said Jean-Marc Chapus, TCW Group managing director and CEO of TCW/Crescent Mezzanine. “TCW/Crescent’s core investment philosophy will remain, but we will move forward with enhanced market coverage, a deep and talented team and strong continuity.”
“This is the logical evolution of a relationship between the principals of our firms that goes back over a decade,” said Nicholas Dunphy, a Canterbury principal. “Over the years, we have invested together, competed against one other and come to respect one another.
TCW/Crescent said in a news release that its targeted investment size will be between $25 million and $75 million in subordinated debt, preferred stock or minority common equity with an ability to commit up to $150 million in a single transaction. It will continue to invest in middle market companies that typically have annual revenue between $100 million and $1 billion, a financially motivated management team and a history of profitable operations with margins that meet or exceed industry averages.
On a combined basis, over the past seventeen years the two firms have invested in over 150 transactions representing nearly $2.5 billion in mezzanine financing and yielding returns at the top of its asset class.