Investment management firm Blackstone Group Inc. will acquire a minority stake in American International Group Inc.’s life and retirement business for $2.2 billion, the parties announced in a statement.

  • Under the agreement, Blackstone will acquire a 9.9% equity stake in AIG’s Life & Retirement business through an all-cash transaction. Blackstone will also manage an initial $50 billion of the business’s existing portfolio which will be hiked to $92.5 billion over the next six years.
  • The transactions will be closed simultaneously by the end of the third quarter of the year, during which Blackstone President and Chief Operating Officer Jon Gray will join the board of directors of Life & Retirement.
  • Blackstone Real Estate Income Trust has also entered a separate agreement to purchase AIG’s interests in a US housing portfolio for $5.1 billion. The all-cash transaction is scheduled to be completed in the fourth quarter.

AIG President and Chief Executive Peter Zaffino said the company’s housing portfolio assets are no longer core to its long-term investment strategy.

AIG is up 3.12%, while BX is up 3.23%.