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Monday, December 3, 2012

TCW buying direct lending unit ahead of Carlyle takeover, (NASDAQ: CG)

TCW Group Inc said it is buying a special situations funds group that would allow it to enter the direct lending business for middle market clients, ahead of its own sale to private equity firm The Carlyle Group LP.TCW, a Los Angeles-based investment firm with $135 billion of assets under management (AUM), said on Monday it is acquiring the $2 billion AUM direct lending funds of Regiment Capital Advisors LP, a Boston, Massachusetts-based investment manager.Terms of the deal between TCW and Regiment, which is expected to close by the end of the year, were not disclosed.By getting into the direct lending investment business, TCW can provide investors with stronger returns than other fixed income instruments, without forcing them to bear the risk of equities, said Jess Ravich, who started at TCW as head of alternative products on Monday.

Shares of CG fell by 0.45% or $-0.1123/share to $24.97. In the past year, the shares have traded as low as $20.00 and as high as $27.90. On average, 106308 shares of CG exchange hands on a given day and today's volume is recorded at 35876.