Carlyle (CG) Affirms Entering Acquisition Agreement for TCW Group; Terms Not Disclosed

Global alternative asset manager The Carlyle Group (NASDAQ: CG) and the management of The TCW Group, an asset management firm, today announced a definitive agreement to acquire TCW from Société Générale. As a result of the transaction, TCW management and employees will increase their ownership in the firm to approximately 40% on a fully diluted basis, better aligning interests with clients. Financial terms of the transaction, which is expected to close in the first quarter of 2013, were not disclosed.

Equity for the investment will come from two Carlyle investment funds, as well as from TCW management. The funds are Carlyle Global Financial Services Partners L.P., a $1.1 billion financial services fund, and Carlyle Partners V, a $13.7 billion U.S. buyout fund.

David Lippman, previously Group Managing Director and Head of Fixed Income at TCW, today becomes President and CEO of the TCW Group, succeeding Marc I. Stern. Upon closing of the transaction, Mr. Stern, currently Vice Chairman of TCW, will become Chairman of the newly formed TCW Board of Managers.

The TCW Group:

• M&A: Morgan Stanley
  
• Legal: Debevoise & Plimpton LLP

The Carlyle Group:

• M&A: BofA Merrill Lynch, Sandler O’Neill + Partners, L.P.
  
• Financing: J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley
  
• Legal: Simpson Thacher & Bartlett LLP

Société Générale

• M&A: J.P. Morgan Securities LLC

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