NU Online News Service, Sept. 8, 1:05 p.m. EDT
American International Group Inc. announced Saturday its latest asset sale involving a piece of its global asset management business will eventually bring in $500 million.
AIG said it is selling a portion of its investment advisory and asset management business to Bridge Partners, L.P., a company owned by Pacific Century Group, the Hong Kong-based private investment firm.
The firm said it is retaining its in-house investment operation that oversees approximately $480 billion of assets under management.
The purchase price of approximately $500 million consists of a cash payment of roughly $300 million at closing, plus additional future consideration that includes a performance note and a continuing share of carried interest, AIG said.
Alain Karaoglan, AIG senior vice president-divestiture, said, "After conducting an extensive and rigorous auction process, we concluded that this transaction provides fair value for AIG and achieves the greatest long-term stability and potential for the business, its clients, business partners and employees."
The units being sold operate in 32 countries and manage approximately $88.7 billion of investments of institutional and retail clients across a variety of strategies, including private equity, hedge funds, listed equities and fixed income.
AIG said Win J. Neuger will continue as chief executive officer of the new business and the existing management team will remain in place. Monika M. Machon will continue as senior vice president and chief investment officer of AIG, overseeing AIG's investment operation.
UBS Investment Bank acted as financial advisor to AIG and Perella Weinberg Partners acted as financial advisor to Pacific Century Group on the transaction. Debevoise & Plimpton LLP served as legal advisor to AIG.
The transaction is subject to regulatory and other approvals.
AIG has been involved in a continuing asset sale since it arranged for billions in government support last year to save the firm from bankruptcy.
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