AIG Forms Strategic Investment Partnership with CVC, Committing Up to $3.5B

American International Group (AIG) has recently announced a significant strategic partnership with CVC, a global private markets firm. This collaboration, unveiled on January 19, marks a pivotal moment for AIG as it embarks on a journey to enhance its investment strategies.

The partnership will see the establishment of large-scale separately managed accounts (SMAs) focused on CVC’s credit strategies. AIG plans to allocate up to $2 billion for this initiative, with an initial deployment of $1 billion set for this year. This substantial investment underscores AIG’s commitment to diversifying its portfolio and leveraging CVC’s expertise in credit markets.

In addition to the SMAs, the partnership will also launch CVC’s private equity secondaries evergreen platform. AIG will serve as a cornerstone investor, contributing up to $1.5 billion from its existing private equity portfolio. This move not only provides scale for the new strategy but also facilitates AIG in efficiently managing and transitioning its legacy private equity exposures.

AIG has expressed optimism about the potential for further collaboration with CVC in the future. AIG’s chief executive, Peter Zaffino, who is set to step down midyear, emphasized the significance of this partnership. He described CVC as a “highly respected, world-class global investment manager” and noted that this is AIG’s first partnership with a European-headquartered asset manager, as CVC is based in Luxembourg.

“We look forward to leveraging CVC’s investment expertise and to the long-term value we will create through our strategic partnership,” Zaffino stated, highlighting the mutual benefits expected from this collaboration.

Rob Lucas, CEO of CVC, echoed this sentiment, stating that the SMA component of the deal “demonstrates the depth of our credit platform and our capability to deliver bespoke, capital-efficient solutions for insurers worldwide.” This partnership is poised to enhance both firms’ capabilities in navigating the complexities of the investment landscape.

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AIG

American International Group (AIG) has recently announced a significant strategic partnership with CVC, a global private markets firm. This collaboration, unveiled on January 19, marks a pivotal moment for AIG as it embarks on a journey to enhance its investment strategies.

The partnership will see the establishment of large-scale separately managed accounts (SMAs) focused on CVC’s credit strategies. AIG plans to allocate up to $2 billion for this initiative, with an initial deployment of $1 billion set for this year. This substantial investment underscores AIG’s commitment to diversifying its portfolio and leveraging CVC’s expertise in credit markets.

In addition to the SMAs, the partnership will also launch CVC’s private equity secondaries evergreen platform. AIG will serve as a cornerstone investor, contributing up to $1.5 billion from its existing private equity portfolio. This move not only provides scale for the new strategy but also facilitates AIG in efficiently managing and transitioning its legacy private equity exposures.

AIG has expressed optimism about the potential for further collaboration with CVC in the future. AIG’s chief executive, Peter Zaffino, who is set to step down midyear, emphasized the significance of this partnership. He described CVC as a “highly respected, world-class global investment manager” and noted that this is AIG’s first partnership with a European-headquartered asset manager, as CVC is based in Luxembourg.

“We look forward to leveraging CVC’s investment expertise and to the long-term value we will create through our strategic partnership,” Zaffino stated, highlighting the mutual benefits expected from this collaboration.

Rob Lucas, CEO of CVC, echoed this sentiment, stating that the SMA component of the deal “demonstrates the depth of our credit platform and our capability to deliver bespoke, capital-efficient solutions for insurers worldwide.” This partnership is poised to enhance both firms’ capabilities in navigating the complexities of the investment landscape.

Related:

Topics
AIG