Carlyle Moves Forward With TCW Deal
December 10, 2012
It looks like Carlyle Group's planned acquisition of TCW Group from Societe Generale will not be sidetracked by an arbitration case filed by former TCW unit, EIG Global Energy Partners, had sought to block the sale.
Morningstar reports that 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, 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.
EIG's arbitration case remains outstanding. However, on Nov. 30, United States District Court Judge Christina Snyder in Los Angeles issued a ruling allowing the sale of TCW to Carlyle to proceed. TCW and EIG's joint venture fund will be placed into a trust until EIG's arbitration claims are settled.