Blackstone (NYSE:BX) agrees to acquire a 9.9% equity stake in American International Group's (NYSE:AIG) Life & Retirement business for $2.2B in cash.
AIG also agrees to enter into a long-term strategic asset management relationship with Blackstone to manage an initial $50B of Life & Retirement's existing investment portfolio upon closing of the equity investment, with that amount increasing to $92.5B over the next six years.
Once the transaction closes, Blackstone's president and chief operating officer, Jon Gray, will join AIG's Life & Retirement board.
Separately, AIG and Blackstone Real Estate Income Trust, a long-term perpetual capital vehicle affiliated with Blackstone, reached an agreement for BREIT to acquire AIG's interests in a U.S. affordable housing portfolio for ~$5.1B in an all-cash transaction.