State Street Appointed by TCW to Provide Investment Services

Rhea-AI Summary

State Street (NYSE: STT) and TCW have expanded their long-standing partnership to include middle office services. This builds on State Street's existing administrative and custody services for TCW's public and private fund complexes, as well as capital for TCW's alternatives platform. TCW will utilize State Street's Alpha services to integrate with its front-end platform, unifying the investment management process.

The partnership aims to enhance TCW's operational efficiency and scalability while maximizing technology investments. It also supports TCW's strategic growth initiatives, particularly in credit alternatives, which has seen a doubling of assets over the past four years. Both companies expressed enthusiasm about the expanded collaboration, emphasizing its alignment with TCW's commitment to innovation and operational excellence.

Positive

• Expansion of long-standing partnership to include middle office services
• Integration of State Street's Alpha services with TCW's front-end platform
• Support for TCW's strategic growth initiatives
• Doubling of assets in credit alternatives over the past four years for TCW

Negative

• None.

Insights

Financial Services Expert

This expanded partnership between State Street and TCW is strategically significant for both firms. For State Street, it represents a deepening of an existing relationship and an expansion of its service offering, particularly in middle office services. This aligns with State Street's strategy to provide comprehensive solutions to asset managers, potentially leading to increased revenue streams and a stronger competitive position in the financial services sector. For TCW, the partnership offers operational efficiencies and technological enhancements that could support its growth initiatives, especially in credit alternatives where they've seen significant asset growth. The integration of State Street's Alpha services with TCW's front-end platform could lead to improved investment management processes and potentially better outcomes for TCW's clients. While the immediate financial impact isn't quantified, this type of partnership typically involves substantial long-term value for both parties.

Asset Management Analyst

TCW's decision to leverage State Street's services for middle office operations is a notable move in the asset management industry. It reflects a broader trend of asset managers outsourcing non-core functions to focus on their primary competencies. This partnership could enhance TCW's operational efficiency and scalability, particularly important as they expand into more complex areas like credit alternatives. The doubling of assets in credit alternatives over four years indicates a significant growth area for TCW and State Street's support could be important in managing this expansion. For investors, this could translate to potentially lower operational costs and improved service quality. However, it's important to note that such transitions can be complex and may carry short-term risks. The success of this partnership will likely depend on seamless integration and effective collaboration between the two firms.

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) and TCW announced today an expansion of their decades-long partnership that now includes the provision of middle office services. This engagement builds on and grows the existing suite of services that State Street continues to provide TCW, including administrative and custody services to support TCW’s public and private fund complexes and capital for TCW’s alternatives platform. TCW will leverage State Street’s technical expertise and Alpha services to create seamless integration with its front-end platform to unify the investment management process.

“Asset managers are continually looking for partners who can provide them with solutions that enable them to serve clients well, grow, and scale,” said Ron O’Hanley, chairman and chief executive officer of State Street Corporation. “We are pleased to support TCW with end-to-end services and look forward to growing the partnership with the TCW team.”

“This partnership enables TCW to execute on our strategic growth initiatives through our expanded client offering of diversified solutions, particularly in credit alternatives which has doubled in assets over the past four years,” said Katie Koch, president and chief executive officer of TCW. “We are delighted to enter into this arrangement with State Street who has been a long-standing partner to us.”

Working with State Street will enable TCW to augment areas of its operating model to increase efficiency and scale while maximizing investment in technology solutions.

“We are excited about this partnership with State Street as it aligns with TCW’s commitment to innovation and operational excellence, while allowing TCW to continue to evolve to meet client needs with an expanded range of platform capabilities,” said Melissa Stolfi, chief operating officer of TCW.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $44.3 trillion in assets under custody and/or administration and $4.4 trillion* in assets under management as of June 30, 2024, State Street operates globally in more than 100 geographic markets and employs approximately 53,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of June 30, 2024 includes approximately $69 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

© 2024 State Street Corporation

About The TCW Group

TCW is a leading global asset management firm with a broad range of products across fixed income, alternative investments, equities, and emerging markets. With over half a century of investment experience, TCW manages approximately $200 billion in client assets today. Through its ETFs, TCW MetWest Funds, and TCW Funds, TCW manages one of the largest fund complexes in the U.S. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals. For more information, please visit www.tcw.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding the expansion of our servicing relationship with TCW, as well as regarding our business, strategy, growth and sales prospects, the financial and market outlook and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “will,” “expect,” “intend,” “aim,” “outcome,” “future,” “strategy,” “objective,” “plan,” “believe,” “anticipate,” “seek,” “may,” “trend,” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements. Important factors that could cause actual results to differ materially from those indicated by any forward-looking statements include factors set forth in our 2023 Annual Report on Form 10-K, our subsequent SEC filings and our news release and slide presentation accompanying our first quarter 2024 earnings announcement in which the servicing mandate referenced in this news release is included. We encourage investors to read these materials, particularly the sections on risk factors and the endnotes, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this news release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this news release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241002993915/en/

Media Contacts:

State Street:

Brendan Paul

Bpaul2@statestreet.com

+1-401-644-9182

TCW:

Doug Morris

doug.morris@tcw.com

+1-213-244-0509

Source: State Street Corporation

FAQ

What new services will State Street (STT) provide to TCW?

State Street (STT) will now provide middle office services to TCW, in addition to the existing administrative and custody services for TCW's public and private fund complexes, and capital for TCW's alternatives platform.

How will TCW benefit from the expanded partnership with State Street (STT)?

TCW will benefit from increased operational efficiency and scalability, enhanced technology solutions through State Street's Alpha services, and support for strategic growth initiatives, particularly in credit alternatives.

What has been the growth in TCW's credit alternatives assets over the past four years?

TCW's credit alternatives assets have doubled over the past four years, according to the press release.

How will State Street's (STT) Alpha services be utilized by TCW?

TCW will leverage State Street's Alpha services to create seamless integration with its front-end platform, unifying the investment management process.