The Carlyle Group and TCW Management to Acquire Asset Manager TCW Group from Société Générale
David Lippman Named President and CEO of The TCW Group
Emerges as Independent Firm With Increased Employee Ownership, Better Aligning Interests with Clients
WASHINGTON & LOS ANGELES--(BUSINESS WIRE)-- Global alternative asset manager The Carlyle Group (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 firms $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 TCWs 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. Roberts 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. Marcs 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. TCWs 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 firms successes to create additional growth opportunities.
With this investment, Carlyle Global Financial Services Partners has made 12 investments since 2008.
The TCW Group:
- M&A: Morgan Stanley
- Legal: Debevoise & Plimpton LLP
The Carlyle Group:
- M&A: BofA Merrill Lynch, Sandler ONeill + Partners, L.P.
- Financing: J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley
- Legal: Simpson Thacher & Bartlett LLP
- 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 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 Website
The Carlyle Group YouTube Channel
The Carlyle Group:
Liz Gill, +1 202-729-5385
The TCW Group:
Peter Viles, +1 213-244-0509
Source: The Carlyle GroupCopyright Business Wire 2012