What We Know About AIG’s PE Business

From what I’ve gathered of AIG’s private equity businesses, the holdings are relatively significant compared to the entire PE industry, but not large enough to be the insurance behemoth’s top concern.

As an LP, AIG has at least $10 billion in commitments to various private equity funds. Whatever isn’t being sold on the secondary market yet may as well be considered there soon. One venture firm told us they saw a “clear and abrupt halt” to commitment discussions as far back as June.

AIG’s fund of funds commitments include:
$2.1 billion to Industru Kapital 2007 Fund (buyout fund)
$1.8 billion to Mid Europa Fund III LP (buyout fund of Mid Europa Partners)
$585 million to American Capital Equity II LP (a mezz fund)
$379 million to HealthCareVentures VII LP (a venture fund)
(source: Dow Jones Directory of Alternative Investment Programs)

Next we have AIG’s actual private equity business. This includes AIG Highstar, which is pretty small with around $4 billion in assets under management (not funds raised) as of a few years ago. It hasn’t really been focused on or growing too much. The liquidation of these funds would of course depend on key man and change of control provisions. Funds raised from 2003 to present equal just over $3 billion.

Below are the most recently raised funds listed in Galantes’ directory:

Buyout funds:
AIG New Europe Fund II LP $712.4
AIG Asia Opportunity Fund II – $410 million
AIG Global Emerging Markets II LP $259 million

Funds of Funds:
AIG Private Equity Partners IV LP $637.25
AIG Private Equity Partners III LP $239 million

LP Secondaries:
AIG PineStar Capital LP – $700 million

Co-Investment:
AIG Co-Investment Fund LP $664 million

Venture:
AIG Healthcare Partners LP – $350 million

Lastly, we have AIG’s stake in Blackstone Group. The firm had invested around $700 million in it and profited handsomely from BX’s IPO last year.