Seems like the last obstacle to Carlyle’s purchase of the TCW Group [profile] has been resolved.
EIG Global Energy Partners has entered an agreement with TCW and Carlyle in which EIG is now supportive of the acquisition of TCW by investment funds affiliated with Carlyle and TCW management.
Under terms of the agreement, EIG is publicly supporting - and will assist TCW in securing investor consents for - the transaction. TCW will maintain its economic interest in existing EIG-managed funds, while EIG will assume full management responsibility for the Funds as general partner and investment manager. EIG will acquire TCW's economic interest in future EIG-managed Funds, completing the consensual spin-off from TCW that was announced in January 2011. The TCW-Carlyle transaction remains on track to close in the near future.
EIG previously was the fly in the ointment for the deal, threatening to make the $780 million takeover less lucrative than planned.
Here is the press release:
Company Press Release
TCW, EIG, Carlyle Reach Agreement, Clearing Way for Closing of Transaction
EIG Fully Supports Carlyle and Management Acquisition of TCW and Will Assist in Securing Investor Consents
LOS ANGELES & WASHINGTON, Jan 16, 2013 -- The TCW Group (TCW), an international asset management firm, EIG Global Energy Partners ("EIG"), a leading institutional investor to the global energy sector, and global alternative asset manager The Carlyle Group CG +3.78% today jointly announced an agreement under which EIG is now supportive of the acquisition of TCW by investment funds affiliated with Carlyle and TCW management.
Under terms of the agreement, EIG is publicly supporting - and will assist TCW in securing investor consents for - the transaction. TCW will maintain its economic interest in existing EIG-managed funds, while EIG will assume full management responsibility for the Funds as general partner and investment manager. EIG will acquire TCW's economic interest in future EIG-managed Funds, completing the consensual spin-off from TCW that was announced in January 2011. The TCW-Carlyle transaction remains on track to close in the near future.
"We are very pleased to have reached this agreement to move forward together with EIG in support of the Carlyle transaction," said David Lippman, TCW President and CEO. "The agreement protects the interests of investors in the Energy Funds, allows TCW to maintain its economic interest in the existing Funds, and guarantees that EIG's investment team will continue to manage the Funds as it has in the past."
Said EIG Founder Blair Thomas, "We are supportive of TCW's acquisition by Carlyle and TCW management and will assist in its completion. With this agreement, the interests of our Fund investors are fully protected and the same professionals will continue to manage the Funds. This completes our consensual spin-off from TCW, begun two years ago, and we are excited to move forward as a fully independent company."
Carlyle Managing Director Olivier Sarkozy said, "This agreement is a win for everyone involved and we are pleased to move forward to closing. TCW is a great company and we look forward to partnering with management in TCW's new chapter as an independent asset manager."
About TCW
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 $138 billion in assets under management, including $50 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 EIG
EIG is a leading institutional investor to the global energy sector with $10.3 billion under management as of September 30, 2012. EIG specializes in private investments in energy, resources and related infrastructure and was formerly the Energy & Infrastructure Group of Trust Company of the West. During its 30-year history, EIG has invested over $14 billion in the sector through more than 290 projects or companies in 33 countries on 6 continents. EIG's clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, DC, with offices in Houston, London, Sydney, Hong Kong, Seoul and Rio de Janeiro.
About The Carlyle Group
The Carlyle Group CG +3.78% is a global alternative asset manager with $157 billion of assets under management across 101 funds and 64 fund of fund vehicles as of September 30, 2012. Carlyle's purpose is to invest wisely and create value on behalf of our investors, many of whom are public pensions. 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 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 1,300 people in 32 offices across six continents.
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