AIG enters into agreement to sell asset management business

American International Group, or AIG, has entered into an agreement to sell a portion of its investment advisory and asset management business to Bridge Partners, a company owned by Pacific Century Group, a Hong Kong-based private investment firm.

AIG said that 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 approximately $300 million at closing, plus additional future consideration that includes a performance note and a continuing share of carried interest.

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. 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 its investment operation.

UBS Investment Bank acted as financial advisor to AIG and Perella Weinberg Partners acted as financial advisor to Pacific Century Group on this transaction. Debevoise & Plimpton served as legal advisor to AIG. The transaction is subject to receipt of regulatory approvals and other consents.

Alain Karaoglan, AIG's senior vice president of 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."

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