TCW Acquires ETF Business From Engine No. 1

Acquisition Includes Three ETFs and Provides TCW Infrastructure to Broaden ETF Offerings

The TCW Group, a leading global asset management firm, today announced the acquisition of the exchange traded fund (ETF) business and its infrastructure from Engine No. 1, a San Francisco-based investment firm. The transaction is expected to close in the third quarter of 2023, subject to shareholder approval.

“This acquisition signifies an early chapter in TCW’s next stage of growth, adding important capabilities and infrastructure to provide clients with the ability to access TCW’s best investment ideas and strategies through innovative financial vehicles,” said Katie Koch, President and CEO of TCW. “We look forward to integrating the teams into TCW and continuing to invest in the growth of an ETF platform.”

The acquisition marks the latest in TCW’s ongoing expansion of investment solutions. Earlier this year, TCW announced a strategic partnership with Lakemore Partners Ltd. to support the growth of TCW’s collateralized loan obligation platform.

Through the transaction, TCW is acquiring the entirety of Engine No. 1’s Transform ETF platform, which includes the active, thematic Transform Climate ETF (Ticker: NETZ); Transform Supply Chain ETF (Ticker: SUPP); and the Transform 500 ETF (Ticker: VOTE) index fund. Combined, the Transform ETF platform manages more than $600 million in U.S. equity ETFs focused on supply chain onshoring, and energy transition. Upon closing, Engine No.1’s ETF portfolio managers and staff will be integrated into TCW.

“Engine No. 1 is built around the idea that there is incredible investment opportunity in solving large-scale problems, and our thematic ETFs are constructed around that value creation principle,” said Chris James, Founder and Chief Investment Officer of Engine No. 1. “We’re thrilled that TCW recognizes that opportunity and is uniquely positioned to leverage its well-established platform and distribution network to quickly scale the business to seek even greater success.”

The Transform ETF platform expands TCW’s capabilities by providing the infrastructure for TCW to build out a larger ETF platform. Engine No. 1’s capabilities also complement TCW’s existing thematic strategies in artificial intelligence, space technology, next-generation mobility, and renewable energy infrastructure. This acquisition also expands the range of investment products available to TCW’s clients with an emphasis on sustainable investing grounded in economic realities.

“We’ve built a tremendous ETF business at Engine No. 1 and we’re extremely excited by the opportunity to scale it even more quickly as part of TCW,” said Jennifer Grancio, Chief Executive Officer and architect of Engine No. 1’s ETF business, and who as a founding member of BlackRock’s iShares ETF business led European, U.S. and global distribution. “The active, thematic focus of the Transform ETFs fits incredibly well into TCW’s growth strategy and we’re thrilled to help drive the firm’s expansion into new investment solutions.”

This material is for general information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. TCW, its officers, directors, employees or clients may have positions in securities or investments mentioned in this publication, which positions may change at any time, without notice. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and should not be relied on as such or be the basis for an investment decision. The information contained herein may include preliminary information and/or "forward‐looking statements." Due to numerous factors, actual events may differ substantially from those presented. TCW assumes no duty to update any forward‐looking statements or opinions in this document. Any opinions expressed herein are current only as of the time made and are subject to change without notice. Past performance is no guarantee of future results. © 2023 TCW

About The TCW Group

TCW is a leading global asset management firm with a broad range of products across fixed income, equities, emerging markets and alternative investments. With half a century of investment experience, TCW today manages approximately $210 billion in client assets. Through the MetWest Funds and TCW Funds families, TCW manages one of the largest mutual 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.

About Engine No. 1

Engine No. 1 is an investment firm that creates value for shareholders and companies by providing transformative capital, as well as operational and technological expertise, to industries that are undergoing fundamental transition. The firm is focused on the investment themes of decarbonization and the relocalization of North American supply chains. For more information, please visit: www.engine1.com.

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