AIG Announces Strategic Investment Partnership of Up to $3.5B With CVC

American International Group (AIG) announced a strategic partnership with global private markets firm CVC.

The partnership, announced Jan. 19, includes the establishment of large-scale separately managed accounts (SMAs) across CVC’s credit strategies, for which AIG will allocate up to $2 billion. An initial $1 billion will be deployed this year, AIG said.

The partnership also includes the launch of CVC’s private equity secondaries evergreen platform with AIG as a cornerstone investor, contributing up to $1.5 billion from its existing private equity portfolio to provide scale and a seed portfolio for the strategy. It also “enables AIG to efficiently manage and transition its legacy private equity exposures.”

AIG said the companies expect to explore additional areas of collaboration over time.

AIG chief executive Peter Zaffino, who the insurer said is stepping down at midyear, said CVC is a “highly respected, world-class global investment manager” and that the partnership is AIG’s first with an European headquartered asset manager. CVC is headquartered 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 said.

Rob Lucas, CEO of CVC, said 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.”

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Topics AIG