AIG Global Real Estate has plans to sell its fund management business.
The fund manager operates 15 funds with more than $12.4bn (€9.4bn) in assets under management and $5.2bn of equity commitments as of 30 September 2008.
Headquartered in New York, AIG GRE has regional operations in Europe, Japan, Latin America and Asia.
Bank of America and Merrill Lynch, which are the financial advisers for the parent company, insurance giant AIG, have begun seeking buyers for the business.
AIG was saved from collapse by a $150bn US government rescue package, and is selling off significant parts of its business in an effort to repay its debts.
It is not yet clear whether AIG will look to divest its property portfolio, which comprises 4.9m m2 of retail, residential, industrial, office and hospitality space in 50 countries.
? Henderson Group is in exclusive talks to buy New Star. A deal could include an offer for the company’s ordinary shares, conditional on the proposed capital restructuring that the company has agreed with its bank syndicate.
New Star concluded a restructuring in December which saw its lenders swapping £240m (€274.2m) of the company’s £260m debt for equity.
The banks, led by HBOS, are also being issued with £94m of convertible preference shares. The fund manager will be delisted from the London Stock Exchange.
However, New Star said there was “no certainty” that any transaction or an offer for the company’s ordinary shares would be forthcoming.
It added that it remained committed to the restructuring and that all proceeds from a takeover would be applied to the repayment of New Star’s liabilities.
