The Carlyle Group and TCW Management to Acquire Asset Manager TCW Group from Société Générale
August 09 2012 - 12:08PM
Business Wire
Global alternative asset manager The Carlyle Group (NASDAQ: CG)
and the management of The TCW Group, an asset management firm,
today announced a definitive agreement to acquire TCW from Société
Générale. As a result of the transaction, TCW management and
employees will increase their ownership in the firm to
approximately 40% on a fully diluted basis, better aligning
interests with clients. Financial terms of the transaction, which
is expected to close in the first quarter of 2013, were not
disclosed.
Equity for the investment will come from two Carlyle investment
funds, as well as from TCW management. The funds are Carlyle Global
Financial Services Partners L.P., a $1.1 billion financial services
fund, and Carlyle Partners V, a $13.7 billion U.S. buyout fund.
Founded in 1971, TCW is a diversified asset management firm
offering U.S. equities and fixed income, international and
alternative strategies, with approximately $130 billion under
management. Powered by strong investment performance, the firm’s
$42 billion mutual fund franchise has attracted more than $13
billion in net inflows in 2011 and 2012.
David Lippman, previously Group Managing Director and Head of
Fixed Income at TCW, today becomes President and CEO of the TCW
Group, succeeding Marc I. Stern. Upon closing of the transaction,
Mr. Stern, currently Vice Chairman of TCW, will become Chairman of
the newly formed TCW Board of Managers.
Marc Stern said, “This major milestone in the evolution of TCW
enhances our long-term position in the competitive asset management
business. I am particularly pleased that we will materially
increase employee ownership in TCW – a transformative change that
will even more closely align our interests with those of our
clients. We are putting in place a strong new management team led
by David Lippman, a decisive and effective leader who has been
instrumental in both the integration of MetWest and TCW and in the
growth of our fixed income and mutual fund businesses.”
David Lippman said, “This is an exciting moment for TCW’s
talented and dedicated employees, as we look to the future as an
independent firm united in our focus on serving our clients. TCW is
well positioned today to achieve our clients’ investment objectives
because of the vision and efforts of our founder Robert Day and the
leadership of Marc Stern. Robert’s commitment to independent,
research-driven investment management remains at the core of our
mission. Marc has dedicated his 22-year TCW career to building and
growing the firm. Marc’s stewardship has enabled us to realize
consistently strong returns for clients, growth in assets under
management and, now with this transaction, significant employee
ownership of the firm.”
Olivier Sarkozy, Carlyle Managing Director and Head of the
Financial Services team, said, “TCW is a premier global asset
manager that will become even stronger as a free-standing company
with increased employee ownership. TCW’s team of investment
professionals has consistently out-performed across a broad range
of strategies. The firm has enviable institutional relationships, a
world-class distribution network, and a vibrant and fast-growing
mutual fund complex. We look forward to working with the TCW
management team to capitalize on the firm’s successes to create
additional growth opportunities.”
With this investment, Carlyle Global Financial Services Partners
has made 12 investments since 2008.
Advisors:
The TCW Group:
- M&A: Morgan Stanley
- Legal: Debevoise & Plimpton
LLP
The Carlyle Group:
- M&A: BofA Merrill Lynch, Sandler
O’Neill + Partners, L.P.
- Financing: J.P. Morgan Securities LLC,
BofA Merrill Lynch, Morgan Stanley
- Legal: Simpson Thacher & Bartlett
LLP
Société Générale
- M&A: J.P. Morgan Securities
LLC
About TCW Group
Founded in 1971, The TCW Group, Inc. develops and manages a
broad range of innovative, value-added investment products that
strive to enhance and protect clients’ wealth. The firm has
approximately $130 billion in assets under management, including
$42 billion in mutual funds under the MetWest and TCW Fund
families. TCW clients include many of the largest corporate and
public pension plans, financial institutions, endowments and
foundations in the U.S., as well as a substantial number of foreign
investors and high net worth individuals. For more information,
please refer to www.tcw.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset
manager with $156 billion of assets under management in 94 funds
and 63 fund of fund vehicles as of March 31, 2012. Carlyle invests
across four segments – Corporate Private Equity, Real Assets,
Global Market Strategies and Fund of Funds Solutions – in Africa,
Asia, Australia, Europe, the Middle East, North America and South
America. Carlyle has developed expertise in various industries,
including: aerospace, defense & government services, consumer
& retail, energy, financial services, healthcare, industrial,
technology & business services, telecommunications & media
and transportation. The Carlyle Group employs approximately 1,300
people in 32 offices across six continents.The Carlyle Group –
WebsiteThe Carlyle Group – YouTube Channel
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