American International Group completed the sale of its third-party asset management business, renamed PineBridge Investments, to Hong Kong-based Pacific Century Group, according to separate announcements today by AIG and PineBridge.
AIG said it “will continue to manage approximately $509 billion of assets as part of its internal investment operation.”
“Pacific Century Group paid $277 million in cash at closing” with further payments likely “in the form of a performance note and a continuing share of carried interest,” according to AIG's announcement. When the deal was first announced in September 2009, AIG predicted the price would eventually come to around $500 million.
The latest announcements pegged PineBridge Investments' assets under management at $87.3 billion, down slightly from the $88.7 billion at the time of the September announcement. According to PineBridge, 34% is in fixed-income strategies, 31% is in alternatives, 26% is in listed equity strategies and 9% is in balanced funds.
Institutional clients accounted for 44.8% of the firm's assets, with retail clients contributing 23.6% and AIG and its insurance affiliates accounting for the remaining 31.6%.
