Carlyle completes TCW MBO from France’s Societe Generale

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US asset manager The TCW Group Inc has completed its journey to independence after its management and The Carlyle Group LP (NASDAQ:CG) finalised the purchase of the business from French banking major Societe Generale SA (EPA:GLE).

The parties did not volunteer any information related to financial terms. The newly independent firm will be 40% owned by its managers and employees.

When the deal was announced in August 2012, Carlyle said that two of its investment funds and TCW’s management would provide equity for the acquisition, while debt financing would come from JPMorgan Securities LLC, BofA Merrill Lynch and Morgan Stanley (NYSE:MS).

TCW was advised by Morgan Stanley and Debevoise & Plimpton LLP. Carlyle took counsel from BofA Merrill Lynch, Sandler O’Neill + Partners LP and Simpson Thacher & Bartlett LLP. Societe Generale employed the advisory services of JP Morgan Securities LLC.

TCW’s chairman Marc Stern described the completion of the deal as the start of a new journey for the company. With employees owning a significant stake in the business, the result will be better alignment of interests, while the asset management expertise and resources of Carlyle will help TCW sustain its growth, Stern said.

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