EIG Global Energy Partners has reached a deal with the TCW Group whereby EIG will publicly support the buyout of TCW by the Carlye Group.
After separating from TCW in December 2010, EIG retained its interest in a joint venture with TCW responsible for running a $4 billion energy investment fund. When the proposed TCW takeover was announced in August 2012, EIG filed a suit to block the transaction alleging that Carlyle, which also runs its own energy funds, will have access to otherwise sensitive and proprietary information about EIG's portfolio of investments.
Under terms of the agreement, EIG will assist TCW in securing investor consents for the deal while TCW will maintain its interest in existing EIG-managed funds, with EIG assuming full management responsibility for the funds as general partner and investment manager. EIG will acquire TCW's economic interest in future EIG-managed Funds, completing the consensual spin-off from TCW that was announced in January 2011.
"The agreement protects the interests of investors in the Energy Funds, allows TCW to maintain its economic interest in the existing Funds, and guarantees that EIG's investment team will continue to manage the Funds as it has in the past," stated David Lippman, TCW president and chief executive officer.
EIG founder Blair Thomas added: "With this agreement, the interests of our fund investors are fully protected and the same professionals will continue to manage the funds. This completes our consensual spin-off from TCW, begun two years ago, and we are excited to move forward as a fully independent company."