Carlyle completes TCW MBO from France’s Societe Generale

US asset manager The TCW Group Inc has completed its journey to independence after its management and The Carlyle Group LP (NASDAQ:CG) finalised the purchase of the business from French banking major Societe Generale SA (EPA:GLE).

The parties did not volunteer any information related to financial terms. The newly independent firm will be 40% owned by its managers and employees.

When the deal was announced in August 2012, Carlyle said that two of its investment funds and TCW’s management would provide equity for the acquisition, while debt financing would come from JPMorgan Securities LLC, BofA Merrill Lynch and Morgan Stanley (NYSE:MS).

TCW was advised by Morgan Stanley and Debevoise & Plimpton LLP. Carlyle took counsel from BofA Merrill Lynch, Sandler O’Neill + Partners LP and Simpson Thacher & Bartlett LLP. Societe Generale employed the advisory services of JP Morgan Securities LLC.

TCW’s chairman Marc Stern described the completion of the deal as the start of a new journey for the company. With employees owning a significant stake in the business, the result will be better alignment of interests, while the asset management expertise and resources of Carlyle will help TCW sustain its growth, Stern said.

HSBC sells ship brokerage and consultancy arm to management

British banking and financial services group HSBC Holdings plc (LON:HSBA) said its fully-owned unit HSBC Bank plc would shed ship broking and consultancy services provider HSBC Shipping Services Limited to the business’ management, marking a further step in the implementation of the group’s strategy.

Shipping Services, with USD6.8m (EUR5.5m) worth of consolidated gross assets as at 30 June 2012, will change name to Hartland Shipping Services Limited after the deal, which will be carried out through a new firm set up by the buyers, HSBC said without disclosing financial terms.

The group will seal a consultancy accord with Hartland for the sold business to provide global shipping-related valuation and consultancy services to HSBC Group, the vendor explained.

After this disposal, HSBC will continue to offer non-broking and associated consultancy services to the shipping industry.
The deal is seen to wrap up in the fourth quarter of this year.

The British group, with operations in 85 countries globally, is looking to increase focus on rapidly developing markets in Asia.
Its CEO Stuart Gulliver initiated a restructuring process in 2011, with some 28 deals announced since then aimed at eliminating risk-weighted assets from the group’s balance sheet.

The three-year restructuring resulted in 15,000 job cuts and the exit from sub-scale markets and operations with the view of simplifying the business and reducing costs.

For more on HSBC’s asset disposals, click here.