Societe Generale will acquire 70% of TCW Group. SG will get 51% ownership immediately for about $880 million in SG stock and another 19% stake over the next five years. TCW employees will continue to own the remaining 30% of the company. In addition, Societe Generale has agreed to provide TCW with up to $125 million in capital to fund development of new products, and an additional pool of capital to help retain key employees.
TCW officials said the deal gives their firm additional distribution capabilities in Europe and Asia as well as a significant capital infusion.
Societe Generale has $150 billion under management, including $2 billion through SG Cowen. TCW has nearly $80 billion under management, of which $32 billion is in U.S. tax-exempt institutional assets. TCW will be a stand-alone unit within SG Asset Management.
