Optimized outer clutch housing for reduced spin loss, improved oil flow and improved clutch durability

A torque transfer device can include a housing and a clutch. The housing can define a clutch cavity and a pocket. The pocket can be formed at an axial end of the clutch cavity and have a generally arcuate shape that extends circumferentially about the clutch cavity above a static lubrication level. The clutch can include an outer carrier, an inner carrier, a plurality of first and second interleaved friction plates. One of an outer and an inner plate carrier of the clutch can be coupled to an input member for common rotation. The other of the carriers can be coupled to a differential case for common rotation. Rotation of the outer carrier relative to the housing through a fluid in the clutch cavity can sling a portion of the fluid toward an inner surface of the housing to cause the portion of the fluid to collect in the pocket.