Craton Equity Partners 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.

The move comes at a time when investors are increasingly looking to diversify their portfolios with alternatives, said Jess Ravich, group managing director and head of alternative products at TCW.

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

All former Craton Equity partners will join the investment committee for TCW/Craton, along with Ravich and David Wang, director of alternatives at TCW. All the new firm’s employees will be relocated to TCW's Los Angeles office.

“Many aspects of the economy are being touched by climate change and now require investments in finding sustainable solutions. We see unprecedented amounts of capital flowing into environmentally-conscious companies, and TCW/Craton will endeavor to contribute to these solutions,” said Wall.

The TCW Group currently has over $130 billion in assets under management.