SocGen completes sale of TCW to bolster balance sheet

Signing dealPrivate equity group Carlyle has completed its buyout of Los Angeles-based asset manager TCW from Societe Generale for undisclosed terms.

Soc Gen says the sale, announced in August, improves its capital ratio under Basel III rules by an expected 14 basis points.

The transaction is part of Soc Gen's “transformation plan”, in which it sells unwanted operations to concentrate on retail and investment banking.

TCW had $138 billion (€101.7 billion) under management at the end of 2012. The majority is invested in US fixed income, with smaller allocations to US equities, alternatives and international investments.

As part of the deal, the stake owned by TCW's management and employees rises from 17% to 40%. In a statement announcing the deal in August, Olivier Sarkozy, Carlyle managing director and head of the financial services team, said TCW was “a premier global asset manager that will become even stronger as a free-standing company with increased employee ownership”.

In 2001, Soc Gen agreed to pay $880 million in stock to acquire a 51% stake in TCW and agreed to buy a further 19% in four instalments between 2003 and 2006.

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