AIG Capital Partners, which lost three top private equity executives earlier this month, is allowing limited partners in the firm's $900 million Global Emerging Managers II fund to vote on whether they should be allowed to exit the fund, said Joe Norton, AIG spokesman.
Should investors approve the amendment to their partnership agreement, they would be allowed to withdraw from the partnership, he said. The determination came following an informal May 19 meeting of the fund's advisory board and a May 20 conference call with limited partners; Win Neuger, AIG chairman and CEO of AIG Global Investment Group; and David Yeung, president and CEO of AIG Capital Partners.
"It is anticipated that following approval by the members of the GEM II advisory board that a consent and related amendments would be distributed as early as next week," Mr. Norton said. "The GEM II investors will be asked to respond promptly." He added that since early 2004, fund managers have "harvested $680 million" through exits.
In the meantime, AIG executives will be meeting with limited partners over the next several weeks to answer questions and respond to concerns, he said.
Earlier this month, Peter Yu, president and CEO; William Jarosz, a managing director; and Charles Mixon, vice president, left AIG Capital Partners.