According to a statement, EIG, which spun out from TCW in 2011, is publicly supporting the deal. EIG had previously filed a lawsuit claiming that the acquisition will go against an existing agreement where TCW agreed not to compete with EIG.
At the time, EIG chief executive Blair Thomas said that the firm’s objection was only because Carlyle was such a big player in the sector, adding that a takeover from a more generalist firm would have caused no problem.
Carlyle’s energy funds total about $16bn of assets under management, while EIG had $10.6bn of assets at the end of June 2012.
In December the deal was given the go-ahead after a federal judge issued a prelimary injunction allowing the deal.
“We are very pleased to have reached this agreement to move forward together with EIG in support of the Carlyle transaction,” said David Lippman, TCW president and CEO. “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.”
TCW will “maintain its economic interest” in existing EIG-managed funds, while EIG will assume full management responsibility for the Funds as general partner and investment manager.
In addition, EIG will acquire TCW’s economic interest in future EIG-managed Funds.
EIG’s Thomas said, “We are supportive of TCW’s acquisition by Carlyle and TCW management and will assist in its completion. 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.”
Founded in 1971, TCW has approximately $138bn in assets under management, including $50bn in mutual funds under the MetWest and TCW Fund families.
In late December, AltAssets reported that the impending takeover had heralded a string of senior executives stepping down from the LA-based business.
TCW managing directors Michael Conn and Erlend Bø, general counsel Michael Cahill and 22-year TCW veteran Komal Sri-Kumar are leaving the company as part of a management transition ahead of the deal.
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