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 SGs assets under management to over $223 billion, but more significantly increases the companys 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.
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.