AIG and CVC have collaborated to support AIG’s long-term investment objectives, including the creation of large-scale separately managed accounts within CVC’s credit strategies and the launch of CVC’s private equity secondary market evergreen platform with AIG as a cornerstone investor.
CVC will establish its evergreen private equity secondary market platform, with AIG contributing up to $1.5 billion from its existing private equity portfolio.
This will reportedly provide CVC with immediate scale and seed portfolio for its private equity secondary market evergreen strategy and enable AIG to effectively manage and transition its legacy private equity risks.
AIG, meanwhile, plans to allocate up to $2 billion to funds managed by SMA and CVC, with the initial $1 billion to be deployed by 2026.
AIG said SMA will provide it with diversified private and liquid credit strategies tailored to meet its regulatory, capital efficiency and investment return objectives, underscoring CVC’s ability to design and manage large bespoke mandates for global insurance companies.
Peter Zaffino, AIG Chairman and Chief Executive Officer, commented: “CVC is a respected, world-class global investment management firm with deep capabilities in credit and private markets.
“This partnership marks our first with a European-based asset manager and supports AIG’s strategy to actively manage our portfolio while working with best-in-class partners to access differentiated opportunities.
“We look forward to leveraging CVC’s investment expertise and creating long-term value through our strategic partnership.”
Rob Lucas, CEO of CVC, said: “Our partnership with AIG is a strong endorsement of CVC’s ability to meet the evolving needs of global insurance institutions at scale. The SMA component demonstrates the depth of our credit platform and our ability to provide customized, capital-efficient solutions to insurance companies around the world.”
“At the same time, this secondary transaction provides a compelling foundation for our Evergreen private equity secondary vehicle, following the launch of our Evergreen credit and private equity products last year.”
