AIG selling asset management unit for $500 mn

NEW YORK: American International Group Inc. says Saturday it has reached a deal to sell a portion of its asset management business to a Hong Kong-based investment firm for $500 million.

The sale to Bridge Partners LP, which is owned by Pacific Century Group, includes about $300 million in cash at closing, additional future consideration that includes a performance note and a continuing share of carried interest.

The sale is just the latest for the troubled insurance giant. AIG is trying to sell assets to repay billions of dollars in federal loans. The loan package, which helped the company avoid failing, was worth up to $182.5 billion.

The latest units being sold operate in 32 countries and manage about $88.7 billion of investments by institutional and retail clients, AIG said in a release.

AIG will retain its in-house investment arm that oversees about $480 billion of assets under management.

Win J Neuger will continue as CEO of the units being sold and the existing management team will remain in place, the company said.

The transaction is subject to receipt of regulatory approvals. Shares of AIG fell $1.70, or 4 percent, to $40.05 Friday, then fell another 32 cents to $39.73 in after-hours trading.