Asset management company TCW Group said Monday that it has agreed to buy the Special Situations Funds group or SSF from investment manager Regiment Capital Advisors, L.P. Financial terms of the transaction, which is expected to close by year-end, were not disclosed.
The deal comes ahead of TCW's own sale to private equity firm Carlyle Group L.P. (CG). TCW noted that the acquisition will enable it to expand its alternative investment offerings.
The SSF business, with about $2 billion in assets and commitments under management, is overseen by Rick Miller along with six Boston- and New York-based investment professionals, all of whom will join TCW and continue to manage the funds.
The entire SSF investment team will transition to TCW with their core investment operations as well as processes intact and will maintain their presence in both Boston and New York. Miller will become a group managing director of Direct Lending at TCW upon the closing of the transaction.
The SSF business will report to Jess Ravich, Managing Director and Head of Alternative Products of TCW Group.
David Lippman, President and CEO of TCW Group said, "As a diversified asset manager, the acquisition of Regiment's direct lending business and the team of talented investment professionals who have managed the SSF business over the past 12 years is a continuation of our strategy to expand and augment TCW's capabilities and offerings in the alternatives area."
The initial SSF was launched in December 2000 and four subsequent funds have been raised to date. The most recent, Regiment Capital Special Situations Fund V, closed in July 2011.
Founded in 1971, TCW has about $135 billion in assets under management, including $47 billion in mutual funds under the MetWest and TCW Fund families.
Boston-based Regiment Capital Advisors was formed in 1999. The company focuses on managing fixed income credit-related strategies, including high yield hedge funds, private market direct lending funds, and structured products.
CG closed Monday's regular trading session at $24.97, down $0.11 or 0.45 percent on a volume of 40,862 shares.
by RTT Staff Writer
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