Blackstone’s Acquisition of 9.9% Equity Stake in AIG’s Life & Retirement Business

Blackstone's Acquisition of 9.9% Equity Stake in AIG’s Life & Retirement Business

Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton served as legal advisor to AIG on the deal. Simpson Thacher and Bartlett LLP and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Blackstone.

American International Group, Inc. (NYSE: AIG) and The Blackstone Group Inc. (NYSE: BX) have reached a definitive agreement for Blackstone to acquire a 9.9% equity stake in AIG’s Life & Retirement business for $2.2 billion in an all cash transaction.  In connection with the transaction, AIG will enter into a strategic asset management relationship with Blackstone to manage an initial $50 billion of the Life & Retirement business’ 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 these transactions, which are expected to occur simultaneously by the end of the third quarter of 2021, Jon Gray, President and Chief Operating Officer of Blackstone, will join the Life & Retirement Board of Directors. These transactions are subject to HSR approval and other customary closing conditions.

AIG’s financial advisors with respect to the Life & Retirement transactions are Evercore and J.P. Morgan Securities LLC. 

On the Life & Retirement transactions, Goldman Sachs served as financial advisor to Blackstone. 

Wachtell Lipton’s team advising AIG was led by partners Edward D. Herlihy, David K. Lam and Mark A. Stagliano, supported by Kyle M. Diamond, Associate and Fabiola Urdaneta, Associate (Corporate). The team also included T. Eiko Stange, Partner, Swift S.O. Edgar, Associate (Tax), Jeannemarie O’Brien, Partner, and Alicia C. McCarthy, Counsel (Executive Compensation and Benefits).

The Debevoise team was led by insurance M&A partner Marilyn Lion and included Edwin Northover and John Vasily, counsel Benjamin Lyon and Clare Swirski and associates Jan Buschmann, Sarah Hale, Katrina Kaczynski, Katie Power, AJ Salomon, and Paulina Stanfel, banking partners Gregory Lyons and Jeffrey Robins, counsel Alison Hashmall and David Sewell and associates Josie Dikkers and Brenna Glanville, investment management partners Lorna Bowen and Marc Ponchione, benefits partners Lawrence Cagney and Jonathan Lewis, tax partners Gary Friedman, Daniel Priest and Richard Ward and associates Paul Eastham, Kimberly Lee and David Rock and antitrust partner Timothy McIver and counsel Kyra Bromley.

The Skadden team for Blackstone included M&A and Financial Institutions partners Todd Freed (Picture) and Jon Hlafter, and associate Sarah Wolpert.

The Simpson Thacher team included 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.

Involved fees earner: Lorna Bowen – Debevoise & Plimpton; Kyra Bromley – Debevoise & Plimpton; Jan Buschmann – Debevoise & Plimpton; Lawrence Cagney – Debevoise & Plimpton; Josie Dikkers – Debevoise & Plimpton; Paul Eastham – Debevoise & Plimpton; Gary Friedman – Debevoise & Plimpton; Brenna Glanville – Debevoise & Plimpton; Sarah Hale – Debevoise & Plimpton; Alison Hashmall – Debevoise & Plimpton; Katrina Kaczynski – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Marilyn Lion – Debevoise & Plimpton; Benjamin Lyon – Debevoise & Plimpton; Gregory Lyons – Debevoise & Plimpton; Timothy McIver – Debevoise & Plimpton; Edwin Northover – Debevoise & Plimpton; Marc Ponchione – Debevoise & Plimpton; Katie Power – Debevoise & Plimpton; Daniel Priest – Debevoise & Plimpton; Jeffrey Robins – Debevoise & Plimpton; David Rock – Debevoise & Plimpton; AJ Salomon – Debevoise & Plimpton; David Sewell – Debevoise & Plimpton; Paulina Stanfel – Debevoise & Plimpton; Clare Swirski – Debevoise & Plimpton; John Vasily – Debevoise & Plimpton; Richard Ward – Debevoise & Plimpton; Jeanne Annarumma – Simpson Thacher & Bartlett; David Blass – Simpson Thacher & Bartlett; Adam Cohen – Simpson Thacher & Bartlett; Elizabeth Cooper – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; Zachary Fialkow – Simpson Thacher & Bartlett; Joshua Ford Bonnie – Simpson Thacher & Bartlett; Peter Gilman – Simpson Thacher & Bartlett; William Golden – Simpson Thacher & Bartlett; Gregory Grogan – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Drew Harmon – Simpson Thacher & Bartlett; Robert Harrison – Simpson Thacher & Bartlett; Steven Homan – Simpson Thacher & Bartlett; Richard Jamgochian – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Jamin Koslowe – Simpson Thacher & Bartlett; Katherine Krause – Simpson Thacher & Bartlett; Izaak Lustgarten – Simpson Thacher & Bartlett; Corina McIntyre – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Lee Meyerson – Simpson Thacher & Bartlett; Tyler Robbins – Simpson Thacher & Bartlett; Brian Robbins – Simpson Thacher & Bartlett; John Schueller – Simpson Thacher & Bartlett; Spencer Sloan – Simpson Thacher & Bartlett; Aarthy Thamodaran – Simpson Thacher & Bartlett; Mark Viera – Simpson Thacher & Bartlett; Samuel Watters – Simpson Thacher & Bartlett; Todd Freed – Skadden Arps Slate Meager & Flom; Jon Hlafter – Skadden Arps Slate Meager & Flom; Sarah Wolpert – Skadden Arps Slate Meager & Flom; Kyle Diamond – Wachtell, Lipton, Rosen & Katz; Swift Edgar – Wachtell, Lipton, Rosen & Katz; Edward Herlihy – Wachtell, Lipton, Rosen & Katz; David Lam – Wachtell, Lipton, Rosen & Katz; Alicia McCarthy – Wachtell, Lipton, Rosen & Katz; Jeannemarie O’Brien – Wachtell, Lipton, Rosen & Katz; Mark Stagliano – Wachtell, Lipton, Rosen & Katz; Eiko Stange – Wachtell, Lipton, Rosen & Katz; Fabiola Urdaneta – Wachtell, Lipton, Rosen & Katz;

Law Firms: Debevoise & Plimpton; Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom; Wachtell, Lipton, Rosen & Katz;

Clients: American International Group; Blackstone;

Author: Martina Bellini