NEW YORK--Sep. 5, 2009--
American International Group, Inc. (AIG) today announced an agreement to
sell a portion of its investment advisory and asset management business
to Bridge Partners, L.P., a company owned by Pacific Century Group
(PCG), the Hong Kong-based private investment firm. AIG 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
“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,” said Alain Karaoglan, AIG
Senior Vice President - Divestiture.
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 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 in her role 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
this transaction. Debevoise & Plimpton LLP served as legal advisor to
The transaction is subject to receipt of regulatory approvals and other
About Pacific Century Group:
Pacific Century Group (PCG) was established in 1993 and has interests in
infrastructure, property, satellite communications and other investments
in the Asia Pacific region, including Singapore, Hong Kong and Japan.
PCG has a strong track record of holding and developing assets over the
long term, and has a network of well-established connections in Asia.
PCG previously owned Pacific Century Insurance, a leading Hong Kong life
insurance company that included PCI Investment Management. With support
from PCG, PCI Investment Management’s assets under management increased
seven-fold between 2000 and 2007, with a number of the company’s funds
receiving awards from Standard & Poor’s and Lipper.
About American International Group, Inc.
American International Group, Inc. (AIG), a world leader in insurance
and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG’s common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
Source: American International Group, Inc.
Lauren Day, 212-770-3141
Teri Watson, 212-770-7074
Mary Zimmerman / Tim Payne, 212-333-3810 / +852