Is SocGen Down to One for TCW?
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Friday, July 6, 2012

Is SocGen Down to One for TCW?

Societe Generale's sale of its TCW [profile] asset management and mutual fund arm could be wrapped up by the end of July. So reports Reuters in an article that places Carlyle Group is in the pole position in what could be a $700 million deal.

The report, which cites unnamed sources, adds that Clayton, Dubilier & Rice and Warburg Pincus LLC both have dropped out of the bidding. None of the companies mentioned talked with the news service.

The Reuters report seconds a similar report published by Pensions & Investments two weeks ago [MFWire]. Talk of a sale has been in the news since November [MFWire].

"I would be surprised if the process went on for much longer were it not for the seller being Societe Generale, which has an infinite capacity for delay," one of the unnamed sources told Reuters.

One complication according to those sources has been a difficulty in valuing the profits of EIG Global Energy Partners LLC and Crescent Capital Group. The two affiliates invest in energy and credit respectively.

The deal is likely to happen as a management-led buyout with a private equity firm providing the financing.

About one-third of TCW's AUM take the form of mutual funds. All toted, the Los Angeles shop manages about $128 billion with $40 billion in mutual funds.

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