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Wednesday, February 06, 2013

The TCW Deal … is Done

Reported by Tommy Fernandez

It's finally over.

The Carlyle Group's acquisition of TCW is officially done.

The companies reported that today that they completed 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.

The transaction has had a long and torturous history. Rumors of the deal first started in November 2011. Other rivals to Carlyle had dropped out by June 2012.

Finally announced in August 2012, the TCW-Carlyle marriage faced a number of obstacles, including a judicial ruling in November before relaunching in December.

A major milestone was reached in mid-January when EIG Global Energy Partners dropped its opposition to the deal, allowing the companies to start the final stroll to the alter later that month.

Here is the press release:




Company Press Release

Carlyle Group LP : The Carlyle Group and TCW Management Complete TCW Acquisition



TCW Management and Employees Will Own 40% of the Firm

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."

About The TCW Group

?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, with approximately $138 billion in assets under management as of December 31, 2012. 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 The Carlyle Group

?The Carlyle Group (NASDAQ: CG) 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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