The amount of the transaction was not disclosed.
Carlyle’s investment in the firm will come from two funds:
- Carlyle Global Financial Services Partners LP, a $1.1bn financial services fund; and,
- Carlyle Partners V, its $13.7bn U.S. buyout fund.
With the deal, which is exepcted to close in first quarter, The TCW Group’s management and employees will increase their stake in the firm to about 40% on a fully diluted basis.
Founded in 1971 by Robert Day, TCW offers U.S. equities and fixed income, international and alternative strategies, with approximately $130bn under management.
Following the investment, David Lippman, previously Group Managing Director and Head of Fixed Income at TCW, becomes President and CEO of the TCW Group, succeeding Marc I. Stern. Mr. Stern, currently Vice Chairman of TCW, will become Chairman of the Board of Managers.