US asset manager TCW has announced the further entry of Nippon Life Insurance Company into its capital after the Japanese private life insurer has agreed to acquire a 24.75% minority stake in TCW from Carlyle.
Following the closure of the transaction, subject to regulatory approval and expected by year-end, TCW’s employee ownership will increase to 44.07% while Carlyle will retain a 31.18% share it will acquire through its long duration private equity fund, Carlyle Global Partners. The financial terms of the transaction were not disclosed.
Commenting Nippon Life’s investment in TCW’s capital, David Lippman, president and chief executive officer of TCW, said, “We are excited to partner with Nippon Life, a long-term investor that believes strongly in TCW’s client-focused approach.”
“In Nippon Life, we have found a partner that, like Carlyle, will enable us to maintain strong employee ownership, which aligns our interests with those of our clients and strengthens employee incentives, and, most importantly, will allow us to preserve our proven investment processes and philosophy so that we can continue to meet the investment objectives of our clients. We look forward to a long and fruitful partnership with Nippon Life.”
“We are also extremely pleased that Carlyle will remain an investor in TCW as a significant shareholder. Carlyle is an excellent partner and their ongoing participation is a clear indication of the long-term growth potential they see for our firm,” Lippman added.
Yoshinobu Tsutsui, President of Nippon Life, highlighted, “Nippon Life has been working to strengthen our asset management business as one of our highest priorities, and thus, I am honored that an esteemed company like TCW welcomed us as a partner. Over several years, both companies communicated closely together, visiting Los Angeles, New York, and Tokyo, and promoted various business collaborations and interactions.
“Through such communication, we were convinced that TCW has a great investment capability and philosophy that we would like to partner with. Based on this mutual trust, we would like to further deepen our partnership going forward. We also have built a strong relationship with Carlyle for a long time especially in the asset management business, and we look forward to working together, leveraging both Nippon Life and Carlyle strength, for the prosperity of TCW.”
TCW manages approximatively $200bn (€168.7bn) in assets.