TCW executives said Monday that they are withdrawing the UST/TCW Senior Mortgage Securities Fund, L.P. from the Treasury Department's Legacy Securities Public-Private Investment Program. Los Angeles-based TCW will liquidate the $550 million fund, which completed its initial closing last September 30.

Word of the planned liquidation came a month after reports surfaced that the Treasury has suspended the fund due to TCW CIO Jeff Gundlach's exit. His departure has triggered a key-man clause, resulting in the freeze.

Explaining the company's decision to withdraw from participation, TCW CEO Marc Stern stated Monday said the move was appropriate "given that we are at a very early stage of investment in this particular product, and in light of the recent changes in the portfolio management team."

"This will also benefit the holders of older TCW vintage funds, as we will be able to dedicate even more resources to those investments," he added. 

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