AIG Private Equity sells $21m in fund interests

The Swiss fund of funds investor, which is not a subsidiary to insurance giant AIG, has sold stakes in Avista and Sun Capital at a discount of nearly $7m.

AIG Private Equity has sold its limited partner interests in Avista Capital Partners and Sun Capital Partners V for a total of $21 million, bringing the firm’s total secondary sales in the past month to $50 million.

The secondary interests were sold at a discount of $6.6 million, the firm said in a statement. The firm’s outstanding commitments to private equity funds will decrease by about $17 million as a result of the sale.

The firm already sold four other limited partner interests last month to a single buyer for a total of €26 million, discounted by €10 million. The interests the firm sold were in Advent V, CVC III, CVC IV and CVC Tandem.

The sale’s proceeds will be used to repay debt and fund capital calls from the firm’s remaining portfolio funds, the firm said.

In total, the secondary sales will generate a total of $50 million and reduce AIG Private Equity’s outstanding commitments by about $30 million, according to Andrew Fletcher, chief executive.

The firm still has about $700 million in outstanding commitments to private equity funds, primarily from the 2007 and 2008 vintage years, Fletcher said in a statement.

“We believe this capital will be deployed during what will likely turn out to be a very attractive entry point for the private equity investments,” Fletcher said.

AIG Private Equity is not a subsidiary of US conglomerate American International Group. The firm said its assets are separate from AIG’s assets and it has no obligation to finance the liabilities of any AIG company.

The US government rescued ailing AIG in September with an $85 billion, two-year revolving credit facility. In return, the government is to receive a 79.9 percent stake in the company. AIG received two additional lines of credit totaling $58.7 billion.

Edward Liddy, AIG’s chief executive who was installed in the position by the US government after the bailout was announced, said the company is looking to sell off most of its assets, including AIG Investments.