TCW Group Acquires Craton Equity

Sep 30 2013 | 12:36pm ET

The Los Angeles-based TCW Group has acquired a private equity firm that specializes in 'socially responsible investing.'

The terms of the deal that will see TCW take over Craton Equity Partners, also Los Angeles-based, were not revealed.

Founded in 2006, Craton provides growth capital to venture-backed companies within the sustainability, resource efficiency and carbon-reducing technology sectors. The firm has $241.5 million in assets under management and typically invests in companies with low-capital requirement business models that generally operate independent of any tax credits and government subsidies.

Craton managing partners Bob MacDonald and Tom Soto will become managing directors at TCW/Craton while Craton managing partner Kevin Wall becomes a senior advisor and Craton partner David Asarnow becomes a senior vice president and director of investments.

All the former Craton Equity partners will be on the investment committee for TCW/Craton, joined by Ravich and David Wang, director of alternatives at TCW. All TCW/Craton employees will be relocated to TCW’s Los Angeles office.

“The acquisition of Craton Equity further expands our alternative asset management platform at a time when institutional investors are increasingly issuing mandates for socially responsible investing,” said Jess M. Ravich, group managing director and head of alternative products at TCW, in a statement.

Founded in 1971, The TCW Group has over $130 billion in assets under management.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...