American International Group (AIG) has announced an agreement to sell a portion of its investment advisory and asset management business to Bridge Partners, a company owned by Pacific Century Group (PCG), the Hong Kong-based private investment firm. However, AIG intends to retain its in-house investment operation that oversees approximately $480 billion of assets under management.
Reportedly, the purchase price of approximately $500 million consists of a cash payment of about $300 million at closing, plus additional future consideration that includes a performance note and a continuing share of carried interest.
According to the company, 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 fund of funds, listed equities and fixed income.
It has added that Win Neuger will continue as CEO of the new business and the existing management team will remain in place. Monika Machon will continue in her role as senior vice president and chief investment officer of AIG, overseeing AIG’s investment operation.
Alain Karaoglan, senior vice president – divestiture, AIG , 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.”
