Global alternative asset manager The Carlyle Group (NASDAQ: CG), and the management of The TCW Group, a global asset management firm, today announced the completion of their acquisition of TCW from Société Générale, creating an independent firm. As a result of the transaction, TCW management and employees will own approximately 40% of the firm on a fully diluted basis. Financial terms of the transaction were not disclosed.
As previously announced, equity for the investment came from two Carlyle investment funds and from TCW management. The funds are Carlyle Global Financial Services Partners, a $1.1 billion financial services fund, and Carlyle Partners V, a $13.7 billion U.S. buyout fund.
“This is an exciting day in TCW’s 42-year history,” said TCW President and CEO David Lippman. “To date, our success has been powered by the tradition of investment excellence instilled in the firm by our founder Robert Day. As we transition to a freestanding company, I also thank Société Générale for all of the support they have given us over the years as a terrific parent company. We now move forward with another supportive partner in Carlyle, increased employee ownership, and the alignment of interests. I look forward to a bright future.”
Marc Stern, Chairman of the TCW Board, added, “The closing of the transaction with Carlyle officially opens the next chapter in TCW’s evolution. Especially gratifying to me is the expansion of employee ownership in the firm from nothing in early 2010 to the significant percentage it is today. The unifying effects of an ownership mentality, combined with resources, knowledge and guidance from Carlyle will fuel TCW’s continued growth. Additionally, we have already seen the fruits of David Lippman’s leadership with the closing of two recent transactions in the alternatives area and his dynamic efforts to position the firm for future success.”
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