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December 03, 2017 at 09:10 AM
Nippon Life Insurance Co. agreed to buy a minority stake in TCW Group Inc. from Carlyle Group LP to strengthen its asset management operations and diversify revenue sources.
The Japanese insurer will acquire 24.75% of the Los Angeles-based money manager, it said in a statement in Tokyo on Friday, without disclosing financial terms. Carlyle, a private equity firm, will keep a 31.18% stake. The deal is valued at around 55 billion yen ($490 million), a person with knowledge of the matter said.
Nippon Life has been buying companies abroad as Japan’s declining population and low interest rates damp prospects at home. It was the third-largest shareholder of Des Moines, Iowa-based insurer Principal Financial Group Inc. as of September, with a 6.3% stake, according to data compiled by Bloomberg. The Japanese insurer bought a majority stake in Australia’s MLC Ltd. for A$2.2 billion ($1.7 billion) in 2015.
(Related: Jack Ma-Backed Yunfeng to Buy MassMutual Unit for $1.7 Billion)
Washington-based Carlyle bought 60% of TCW from Societe Generale SA in 2013, ending more than a decade of ownership by the French bank. The deal valued TCW at $780 million, according to a presentation at the time. After Nippon Life completes its transaction, TCW management and employees will own 44.07% of the firm, the insurer said.
