The Carlyle Group, the global asset manager with about $159 billion in assets under management, has decided to back executives at The TCW Group in a purchase that would garner “approximately 40%” interest from its Paris-based parent company.
While the terms of the transaction were not disclosed, it was highlighted today that “TCW management and employees,” along with the help the alternative investment firm, increased ownership stake from Societe Generale. The announcement listed that this helps to better align “interests with clients.” The deal is slated to close at the end of 2013’s first quarter.
Washington, D.C.-based Carlyle noted that its funding was derived from two investment funds: the Caryle Global Financial Services Partners L.P. and the Carlyle Partners V.
Olivier Sarkozy, Carlyle managing director and head of the financial services team, said TCW was attractive because it has “enviable institutional relationships, a world-class distribution network, and a vibrant and fast-growing mutual fund complex.”
Previously, in 1971, TCW founded its asset management unit that manages more $130 billion in equities, fixed-income, and alternative strategies. In December 2009, the TCW Group acquired fixed-income money manager Metropolitan West Asset Management (MetWest) Friday and effectively fired MBS professional Jeffrey Gundlach, its high yield fixed-income CIO and head portfolio manager.
Following the termination, TCW found itself caught up in two years worth of litigation with Gundlach and his firm DoubleLine Capital. The verdict was ultimately handed down in September 2011.
Today, David Lippman, who was appointed head of TCW’s high-grade fixed-income business at the time of Gundlach’s departure, will be named president and CEO of the California-based firm. He succeeds Marc Stern, who is scheduled to take on a chairman position at the firms Board of Managers.
“Marc has dedicated his 22-year TCW career to building and growing the firm,” Lippman said.
Jacques Ripoll, head of the global investment management and services division (GIMS) at the European financial services parent company, said Aug. 9, “TCW is now ready for a new phase of development and I wish for the company a long lasting success.”
