SG Asset Management, the asset management arm of the Societe Generale Group of Paris, will acquire 70 percent of TCW of Los Angeles, the fund manager with $80 billion in assets under management, SocGen announced yesterday.

The transaction increases SG’s assets under management to over $223 billion, but more significantly increases the company’s presence in the U.S., which was the main reason why SocGen pursued the deal, according to the announcement.

The sale will be completed in two stages over the next five years, according to the announcement. SG will first pay $880 million for 51 percent of TCW. Then, between 2003 and 2006, SG will acquire 19 percent of TCW in four equal annual installments, according to the announcement.

SG will not change the operations or staffing of TCW, and company will continue to operate under the TCW brand, according to SocGen. TCW currently has nearly 600 employees.

The deal will give TCW a distribution platform in Europe and Asia, according to the announcement.

“This is not a transaction we sought out, but the deal has so many advantages – and the chemistry and strategic fit with our new partners is so good – that it only made sense to pursue it,” said Robert Day, founder, chairman, and CEO of TCW in a statement.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.