I read with disappointment your Dec. 26, page 1 article Investors win in battle with AIG. Suggesting that there was a "battle" between AIG Global Investment Group and its investors could not be further from the truth. This article sensationalized an issue that took place nearly a year ago, and on which you had already reported last Oct. 31.
A battlefield connotes combatants with divergent interests. As evidenced by the significant capital we invest alongside our clients, AIGGIG's interests are very much aligned with those of our investors. Our steady growth and success since the firm's formation 10 years ago is the result of our ability and commitment to serve in our clients' best interests.
We sought to accommodate investors at every turn during the management transition of AIG Global Emerging Markets Fund II LP, which was the focus of your December article. The fund's investment team in Latin America, Central and Eastern Europe and Southeast Asia remain intact. They continue to source a robust pipeline of deals through their reputation on the ground in local markets and the strength of the AIGGIG platform. We believe this team to be one of, if not the most, experienced emerging markets private equity teams in the business.
The reality is that AIGGIG posted its best year ever in 2005, thanks to a loyal base of sophisticated investors and the firm's breadth and depth of talented and dedicated investment professionals. We closed four oversubscribed alternative investment funds in 2005, with capital commitments totaling more than $2 billion, and our hedge funds of funds raised approximately $600 million in new assets.
In total we raised a record $13.4 billion in new business, up 20% over the previous year, with $8.6 billion sourced from existing clients and $4.8 billion from new clients. This was not accomplished on a battlefield of any sorts.
Were we successful in resolving an issue that took place nearly one year ago? Fortunately, I am able to let the facts speak for themselves.
Win J. Neuger
chairman and chief executive officer
AIG Global Investment Group
executive vice president and chief investment officer
American International Group