After five months of legal battle, yesterday EIG Global Energy Partners dropped
opposition to the sale of TCW
] to Carlyle
funds and TCW management. Yet TCW had to drop
purchase on August 9, with Carlyle Global Financial Services Partners L.P.
Carlyle Partners V
slated to buy a combined 60 percent of TCW and the rest
destined to be held by TCW management. Later that month EIG, a former TCW unit that spun
off in 2009, filed suit
block the deal, as Carlyle competes with EIG by offering energy sector investment funds,
In November, a federal judge provisionally blocked
the TCW sale for EIG, only to unblock
it in December. Also
in December, a new twist came to light: Reuters reported
that at least a sixth of TCW's profit comes
from payments made by EIG.
Now Jessica Toonkel of Reuters reports
that, while EIG will no longer fight
Carlyle-TCW deal, EIG will also no longer have to pay TCW any fees from future EIG funds.
According to the wire service, 33 percent of management fees on EIG's exising funds goes
to TCW. Previously, EIG was also supposed to pay 20 percent of any future fund's fees to
TCW. No longer.
"With this agreement, the interests of our Fund investors are fully protected and the
same professionals will continue to manage the Funds," stated EIG founder Blair
. "This completes our consensul 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
described the agreement with EIG as "a win for
everyone involved." Sarkozy, half brother of a French ex-President and boyfriend of
actress and designer Mary-Kate Olsen, leads Carlyle's global financial services group.
Neil Anderson, Managing Editor
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