Carlyle Closes TCW Buy

The Carlyle Group has completed its acquisition of the TCW Group. Financial terms were not announced. TCW management and employees will own about 40% of the company on a fully diluted basis. Carlyle’s investment in TCW comes from the firm’s Global Financial Services Buyouts fund, a $1.1 billion pool, and Carlyle Partners V, a U.S. buyout fund raised $13. 7 billion in 2007.


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.”

“We are pleased to have completed this investment and started this partnership,” added Olivier Sarkozy, Carlyle Managing Director and head of the financial services team. “TCW is a solid and successful business built around a strong franchise. This sentiment has only deepened over the past few months as we have witnessed firsthand the professionalism and discipline of both the executive management and investment teams. We are particularly pleased with TCW’s fast-growing mutual fund complex, which has grown by more than 20% since we first announced the transaction in August. We look forward to supporting TCW and creating value.”