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Finance

Nippon Life Insurance in talks for stake in TCW

Company plans to acquire 20-30% stake in US asset management giant by year-end

  © Reuters

TOKYO -- Nippon Life Insurance has been granted preferential negotiating rights with U.S. asset management giant TCW Group to acquire some 20-30% stake in the company, the Nikkei learned on Wednesday.

Part of the talks include Nippon Life considering commissioning part of its assets to TCW after the investment and other matters.

The two companies are aiming to finalize the deal by the end of this year.

Under the Bank of Japan's negative interest rate policy, many domestic financial institutions have invested in foreign asset managers. Nippon Life hopes to increase its group-wide profits by diversifying sources of revenue.

TCW's strength lies in managing foreign bonds. 

Nippon Life plans to purchase stock from U.S. private equity firm Carlyle Group, which owns about 60% of TCW. The investment amount has yet to be determined but is expected to be around 50 billion yen ($446 million) to 100 billion yen.

The Japanese company may also send a team of directors to TCW.

TCW has total assets under management of $196.9 billion as of the end of June this year, while Nippon Life has total assets of 65 trillion yen.

(Nikkei)

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