Ardian and PineBridge buy AIG portfolio – exclusive

The portfolio comprised around 340 private equity, credit, real estate and fund of funds positions.

Ardian and PineBridge Investments have bought a portfolio of private markets stakes offloaded by American International Group, four months after Secondaries Investor first reported the sale.

The pair acquired a portfolio of mainly private equity stakes, according to three sources familiar with the matter. The insurance giant’s sale included around 340 stakes and also included private credit, real estate and fund of funds interests, two of the sources said.

Secondaries Investor reported in April that the insurer was looking for buyers for a portfolio worth around $2.3 billion portfolio.

It is understood AIG did not use an advisor on the sale.

PineBridge, which was part of the asset management and investment advisory arm of AIG, was sold to Hong Kong-based Pacific Century Group in 2010 in a deal worth at least $277 million. In March the firm held the final close in on its PineBridge Secondary Partners IV fund on $568 million, beating its $500 million target.

AIG wrote in its 2017 annual report that it was planning to reduce the size of its private equity portfolio “in light of changing market conditions and perceived market opportunities”.

AIG had $498.3 billion in assets under management as of 31 December, around $58 billion of which was in illiquid assets including private company securities, investments in private equity funds and hedge funds.

AIG and PAI Partners are among the high-profile names to have carried out secondaries transactions without an intermediary so far this year. Secondaries Investor revealed in mid-August that Landmark Partners was to back the single-asset restructuring being carried out on the €2.69 billion, 2005-vintage PAI Europe IV.

These deals go against figures on intermediation in the secondaries market, with overall levels of intermediation rising, according to a survey by Setter Capital. There was $23.7 billion in intermediated secondaries deal volume in the first half, equivalent to 64.6 percent of the total, the intermediary found in its latest first half report. In the first half of last year intermediated deals accounted for 59.9 percent of the total.

A number of large portfolios have changed hands in 2018. In April, Ardian emerged as the buyer of $750-million-worth of stakes sold by Alaska Permanent Fund, Secondaries Investor reported. In July Goldman Sachs bought $1.7 billion worth of stakes from sovereign wealth fund Government of Singapore Investment Corporation, as Secondaries Investor reported.

Ardian and AIG declined to comment. PineBridge did not return a request for comment by press time.