The acquisition of downtown Los Angeles asset manager TCW Group Inc. by the Carlyle Group and TCW management has closed, the companies announced Wednesday.
Financial terms of the deal, which was announced in August, were not disclosed. Carlyle, an asset manager in Washington, D.C., acquired a 60 percent stake in TCW, with about 150 of TCW’s 500 employees holding the rest.
TCW did not offer employee ownership until early 2010, just months after the firm’s firing of Jeffrey Gundlach, a high-profile fund manager. Gundlach, who went on to found rival firm DoubleLine Capital LP, and other managers over the years were reportedly dissatisfied with a lack of meaningful employee ownership in TCW.
Carlyle and TCW managers bought the firm from French bank Société Générale S.A., which had owned TCW since 2001. Société Générale was looking to unload assets amid the European debt crisis.
The deal had been stalled by a lawsuit from TCW spinoff EIG Energy Partners. That firm, also in Washington, manages funds jointly held with TCW and said the acquisition could give Carlyle, an EIG competitor, access to proprietary information.
The firms announced a compromise last month that allows TCW to maintain its ownership in those funds while handing off all management duties to EIG.