Carlyle Group could announce a deal as early as this week to buy TCW from Societe Generale for roughly $700 million, sources said.
The sources, who declined to be named, said Carlyle will use a combination of cash and stock in the deal.
Barring last-minute obstacles, the private equity giant will back a management team at TCW dominated by executives from Metropolitan West Asset Management, the bond boutique SocGen acquired in January 2010, to replace Jeffrey Gundlach, TCW's high-profile chief investment officer, the sources said.
But other sources, noting that important details remain to be hammered out, declined to speculate when a deal could be reached.
Carlyle spokesman Randall Whitestone and TCW spokesman Peter Viles declined to comment. Ken Hagan, a spokesman for Societe Generale, couldn't immediately be reached for comment.