Alternative money manager Carlyle Group and Japanese insurance company T&D Holdings have partnered to acquire a majority stake in reinsurance company Fortitude Group Holdings from American International Group for about $1.8 billion.
After closing on the acquisition of 76.6% of Fortitude from AIG, Carlyle and the investors in a newly created fund, Carlyle FRL, will own 71.5% of Fortitude, which includes a 19.9% stake Carlyle acquired in November 2018, T&D will own 25% and AIG will own 3.5%.
The transaction is expected to close midyear 2020 subject to regulatory approvals and other closing conditions, according to a joint news release from the three firms.
The November 2018 transaction was a balance sheet investment, a Carlyle spokeswoman said.
Carlyle Group has $222 billion in assets under management.