Simpson Thacher is representing Blackstone (NYSE: BX) in connection with its agreement to acquire a 9.9% equity stake in American International Group, Inc.’s (NYSE: AIG) Life & Retirement business for $2.2 billion in an all-cash transaction. The transaction is subject to customary closing conditions and is expected to close by the end of the third quarter of 2021.
As part of this agreement, AIG also agreed to enter into a long-term strategic asset management relationship with Blackstone to manage an initial $50 billion of Life & Retirement’s existing investment portfolio upon closing of the equity investment, with that amount increasing to $92.5 billion over the next six years. Upon the closing of the transaction, Jon Gray, President and Chief Operating Officer of Blackstone, will join the Life & Retirement Board of Directors.
The Simpson Thacher team includes Elizabeth Cooper, Katherine Krause, Mark Viera, Izaak Lustgarten and Robert Harrison (M&A); Peter Gilman, Drew Harmon and Steven Homan (Funds); Nancy Mehlman, Tyler Robbins and Zachary Fialkow (Tax); Greg Grogan and Jamin Koslowe (Executive Compensation and Employee Benefits); Brian Robbins and Jeanne Annarumma (ERISA); Joshua Bonnie, William Golden, Aarthy Thamodaran and John Schueller (Capital Markets); Peter Guryan, Rick Jamgochian and Kelly Karapetyan (Antitrust); David Blass (Registered Funds); Genevieve Dorment, Corina McIntyre and Samuel Watters (IP); and Lee Meyerson, Adam Cohen and Spencer Sloan (Financial Institutions). William Allen and Erica Egenes provided valuable assistance.