NEW YORK, Sept 5 (Reuters) - American International Group Inc agreed on Saturday to sell a part of its asset management business to Hong Kong tycoon Richard Li's Pacific Century Group for about $500 million, after an auction process that dragged on for months.
AIG, which was bailed out by the U.S. government last year, said it will get $300 million in cash at closing and a future consideration that includes a performance note and a continuing share of carried interest.
Bridge Partners LP, a company owned by the Hong Kong-based private investment firm will buy the unit.
The business manages about $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.
AIG is retaining its in-house investment operation that oversees about $480 billion of assets under management.
UBS acted as financial advisor to AIG and Perella Weinberg Partners advised Pacific Century Group. Debevoise & Plimpton LLP served as legal advisor to AIG.
(Reporting by Paritosh Bansal, editing by Jackie Frank)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) Keywords: AIG/ASSETMGMT (paritosh.bansal@thomsonreuters.com +1 646 223 6113; Reuters Messaging: paritosh.bansal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
AIG, which was bailed out by the U.S. government last year, said it will get $300 million in cash at closing and a future consideration that includes a performance note and a continuing share of carried interest.
Bridge Partners LP, a company owned by the Hong Kong-based private investment firm will buy the unit.
The business manages about $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.
AIG is retaining its in-house investment operation that oversees about $480 billion of assets under management.
UBS acted as financial advisor to AIG and Perella Weinberg Partners advised Pacific Century Group. Debevoise & Plimpton LLP served as legal advisor to AIG.
(Reporting by Paritosh Bansal, editing by Jackie Frank)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) Keywords: AIG/ASSETMGMT (paritosh.bansal@thomsonreuters.com +1 646 223 6113; Reuters Messaging: paritosh.bansal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.