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A view of the logo outside a branch of French bank Societe Generale in Paris in this September 13, 2011 file photo.CHARLES PLATIAU/Reuters

Private equity company Carlyle Group LP clinched a deal with Société Générale SA on Thursday for the takeover of the French bank's Los Angeles-based asset management arm, TCW, with management and employees substantially boosting their stake.

Under the deal, TCW's management and employees will increase their ownership of the firm to about 40 per cent and David Lippman, head of fixed income at TCW, will be elevated to chief executive, succeeding Marc Stern, the companies said in a statement.

Mr. Stern is to become chairman of the newly formed TCW board of managers, they added.

Financial details were not disclosed although people familiar with the matter told Reuters last month a deal could value TCW at about $700-million (U.S.). The transaction is expected to close in the first quarter of 2013, the parties said.

"We are putting in place a strong new management team led by David Lippman, a decisive and effective leader who has been instrumental in both the integration of MetWest and TCW and in the growth of our fixed income and mutual fund businesses," Mr. Stern said in the statement.

Founded in 1971, money manager TCW boasts about $130-billion in assets. Carlyle's private equity investment is made through its $13.7-billion buyout fund and its $1.1-billion financial services fund.